Dictionary Entry Auto & Driving UK / Commonwealth: Personal accident cover (roughly equivalent)

Personal Injury Protection (PIP)

Actuarial & Contractual Mechanics

PIP is first-party coverage: you claim on your own policy, not the other driver's. That's what makes it fast. There's no need to prove fault, so benefits usually start within weeks. It's mandatory in the 12 no-fault states, where it replaces most small injury lawsuits. In return, your right to sue is limited by a tort threshold. Limits vary widely. New York requires $50,000 of basic economic loss cover, including lost earnings up to $2,000 a month (NY Insurance Law §5102). Florida requires $10,000, and Texas insurers must offer it and include it unless you reject it in writing (Texas OPIC). PIP is broader than MedPay, which only covers medical bills. See PIP vs MedPay. Some things it doesn't do: PIP never pays for vehicle damage, and it doesn't cover the other driver's injuries. Your liability coverage handles those.

Real-World Dollar Scenario

Maria lives in New York and is rear-ended on the way to work. Her ER visit, MRI and 10 weeks of physical therapy cost $14,000 at New York's fee-schedule rates, and she misses 6 weeks of work earning $4,500 a month. Her own PIP pays the $14,000 in medical bills and about $3,000 in lost wages ($2,000-a-month cap × 1.5 months), for about $17,000 in total. It starts paying within weeks, before anyone formally decides who caused the crash. Her car repairs are handled separately through the other driver's property damage liability.

Wallet Risk: What Happens If You Get This Wrong?

Getting PIP wrong usually means one of three things. First, missing the filing deadline: in New York it's 30 days, as explained in how to file a no-fault insurance claim in New York. Second, rejecting PIP in an at-fault state like Texas and then waiting months for the other insurer. Third, carrying the bare minimum when your income depends on your health. And remember that motorcycles are commonly excluded from PIP systems, including in New York and Florida.

Which States Require PIP?

PIP is required in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah (the no-fault states), and in some other states as an add-on. Texas requires insurers to offer it. Colorado dropped PIP in 2003 and now defaults to $5,000 of MedPay instead. See is Colorado a no-fault state. Georgia doesn't require PIP. See is Georgia a no-fault state.

PIP and Health Insurance

In no-fault states, PIP generally pays before your health insurance for crash injuries. In some states you can coordinate the two to lower your premium. If you're weighing that trade-off, read does health insurance cover car accidents and PIP.

Regulatory & Editorial Notice: PIP limits, deductibles and eligibility rules vary by state and change over time. Sources: NY Insurance Law §5102, Texas OPIC and ValuePenguin no-fault summary.

Quick Knowledge Check

You're injured in a crash in a no-fault state, and the other driver clearly caused it. Who pays your medical bills first?

Your own PIP coverage

Correct. In no-fault states your own PIP pays first, regardless of fault. You can pursue the at-fault driver only if you meet the tort threshold.

• The at-fault driver's liability insurance

That's how at-fault states like Texas and Georgia work. In a no-fault state, your own PIP pays first.

• Your collision coverage

Collision pays for your car, not your injuries.

• Nobody, until a court decides fault

The whole point of PIP is that it pays quickly, without waiting for a fault decision.

Related Terms in Dictionary:

tort threshold → deductible → subrogation → out of pocket maximum →

Search Intent & FAQ

Frequently Asked Questions About Personal Injury Protection (PIP)

Clear definitions, policy implications, and related coverage calculators.

What does Personal Injury Protection (PIP) mean in insurance?

Personal injury protection (PIP) is car insurance that pays medical bills, part of your lost wages and related costs for you and your passengers after a crash, no matter who caused it. It's the core of 'no-fault' insurance. Example: Maria lives in New York and is rear-ended on the way to work. Her ER visit, MRI and 10 weeks of physical therapy cost $14,000 at New York's fee-schedule rates, and she misses 6 weeks of work earning $4,500 a month. Her own PIP pays the $14,000 in medical bills and about $3,000 in lost wages ($2,000-a-month cap × 1.5 months), for about $17,000 in total. It starts paying within weeks, before anyone formally decides who caused the crash. Her car repairs are handled separately through the other driver's property damage liability.

Where can I audit my policy for Personal Injury Protection (PIP) gaps?

Use our free, non-commissioned diagnostic: the 8-Point Policy Health Check to analyze your coverage limits and deductible configurations.