Personal injury protection (PIP), which is also called "no-fault insurance," covers medical bills and related costs resulting from an accident, no matter who caused it.
Personal injury protection (PIP), also known as “no-fault insurance,” is a component of an automobile insurance plan that covers the healthcare expenses associated with a car accident. PIP covers medical expenses for both injured policyholders and passengers, even if some don’t have health insurance.
If the cost of necessary medical care exceeds the auto insurance policy’s PIP limits, health insurance sometimes covers further expenses. Policies have a per-person maximum, meaning that coverage is limited to a certain amount per person if multiple people are injured in an accident
Auto insurance requirements and features differ from state to state, and PIP coverage is available primarily in no-fault states. In a no-fault state, if a policyholder is injured in a car crash, that person's policy pays for the holder’s medical care regardless of who caused the accident. Policyholders with PIP coverage can receive benefits even if the other driver doesn’t have insurance.
PIP coverage, in addition to making medical care affordable, often provides payments for lost income, child care, and funeral expenses related to the accident. Some no-fault states offer medical payments coverage, but it typically has low limits and does not pay for these other costs. The number of states that either require PIP or offer it as an optional add-on to insurance.
PIP auto insurance is required in 12 states and Puerto Rico. Minimum coverage requirements are set by the state governments and can vary. Maximums are set by insurance companies and can also vary, but they are usually no more than $25,000.3