PIP Insurance (Personal Injury Protection) and Car Insurance: The Ins and Outs
If you’ve ever reviewed your auto insurance policy, you may notice the PIP Insurance (Personal Injury Protection) portion of your coverage.
PIP insurance will pay for medical expenses and work loss expenses for both yourself and your passengers if you’re injured in a car accident, even if the accident was your fault. In many states, Personal Injury Protection PIP coverage is mandatory. Personal injury protection can also provide payments for lost income, child care, and funeral expenses related to the accident.
Even if it isn’t mandatory in your state, you may want to consider PIP if you consistently drive with passengers who would sue you/hold you medically liable for injury, or if your health insurance policy is insufficient with regard to covering injury expenses in the event of an accident.
How much does PIP insurance cost?
Generally, PIP insurance rates vary from state to state and also vary based on your personal situation – including the make and model of your car, your accident or citation history, and many other factors.
For example, the state of Michigan has some of the highest auto insurance rates in the country, due to unlimited PIP coverage limits.
For car insurance companies, this can be a difficult prospect – not having coverage caps on injury protection can make for a very expensive payout upon personal injury in Michigan, and many carriers will not insure drivers in Michigan due to the expense and the risk. We work with auto carriers who ensure in every state, so if you’re in Michigan, make sure to let us know. We can find ways to help you save!
What does Personal Injury Protection Cover?
PIP insurance is designed to assist you in the event of an accident. It will cover your medical costs and lost wages, as well as other expenses such as funeral services or childcare due to injury from a covered auto accident when Med Pay typically does not.
PIP insurance coverage will help you cover your medical bills in the event of a car crash. It can help pay for hospital expenses from an accident including rehabilitation services. It compliments your liability insurance when in an automobile accident, regardless of whether you live in a no-fault state or not.
Expenses from an auto accident can add up quickly whether from lost wages from injuries to you or a passenger. If you do not have the proper auto insurance coverages you could be stuck with medical bills you can’t afford to pay.
States that PIP insurance is required.
These states have a mandatory personal injury protection PIP coverage requirement: It is mostly required in no fault insurance states on each auto insurance policy.
PIP auto insurance is required in these 12 no fault insurance states:
- New Jersey
- New York
- North Dakota
PIP is an optional add-on coverage in:
PIP Limits Chart:
|State||No-Fault Insurance State?||Minimum Required Coverage|
|Delaware||No||15k / person|
|Florida||Yes||10k / person|
|Hawaii||Yes||10k / person|
|Kentucky||Yes||10k / person|
|Massachusetts||Yes||8k / person|
|Minnesota||Yes||20k /med expense: 20K loss of income|
|New Jersey||Yes||15k / person|
|New York||Yes||50k / person|
|North Dakota||Yes||30k / person|
|Utah||Yes||3k / person|
Kansas has some special dispensations, including:
- $4,500 medical expense per person
- $900 per month income loss for one year
- $25 per day at-home services
- $4,500 rehabilitation expense per person
- $2,000 funeral expense per person
Is there anything PIP doesn’t cover?
There are a few situations where PIP insurance coverage won’t do you any good. A PIP claim only covers personal injury, so it won’t cover any type of property damage to your vehicle or someone else’s in an accident. This also applies to non-collision-related accidents. If your car is damaged in a non-collision-related incident, PIP insurance won’t cover you.
We know Personal Injury Protection coverage from state to state, so if you’re looking to learn more about PIP coverage and make sure it’s added to your policy, make sure you talk to us! With just one quote form fill out, we match you with auto carriers who service your state and let them compete for your business with competitive rates. We offer the top auto insurance quotes no matter your state, and when you work with us, you deal with just one agent. We won’t spam you with calls or texts – we’re just offering the best possible auto quotes out there, and can help you save on PIP and your total auto policy!PIP Insurance vs. Medical Payments Coverage
PIP Insurance vs. Medical Payments Coverage
Similar to PIP, MedPay covers medical expenses regardless of fault. But unlike PIP, MedPay only covers medical expenses, so it can’t cover other costs like lost wages or childcare expenses. MedPay’s greatest benefit is that it doesn’t require the consumer to pay deductibles or coinsurance for medical care, and it can pay for deductibles, coinsurance, and copays from other types of insurance — including your PIP policy.
PIP and MedPay give you the peace of mind to focus on your recovery, not finances.
Do You Need PIP Insurance?
If you’re driving in one of the 12 states where personal injury protection coverage is required, you need to carry coverage. Even if you are in a state where PIP coverage is not required, but offered, buy PIP insurance because it can cover non-medical costs from a car accident like lost wages and childcare, in addition to medical expenses like rehabilitation and care.
How much will PIP affect my rate?
Even if you live in Michigan and end up paying the higher rates for policies, we can shop your best rate from a variety of carriers.
To give you an example, we ran costs for the average PIP cost for an auto policy in Michigan, including the necessary surcharge on the top. The PIP premium for a single, 20-year old driver in urban Ann Arbor on a 2011 Subaru ran at right around $1,333.30.
For married shoppers, we pulled the rates for more rural Bay City to get an estimate of the cost savings. PIP plus surcharge on a 2006 Buick and 2006 Chevy, respectively, were $400.70 and $348.90. As you can see, age, where the car is principally garaged (whether an urban or more rural area) all matter when quoting a policy.
Let’s discuss your specific needs
Reach out to us today if you need to know if personal injury protection is required for your car insurance in your state, and let’s talk about you and your family’s specific car insurance needs. PIP can be expensive in some states depending on the insurance company, but we’re here to help you find the rock-bottom car insurance rate when it comes to the policy you select. Let’s talk about how we can help get you coverage today!
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