What Is PIP (Personal Injury Protection) and Which States Require It?
In a Nutshell: Personal Injury Protection (PIP) is a no-fault insurance coverage that pays for your medical expenses, lost wages, and other accident-related costs regardless of who caused the crash. It's required in 12 "no-fault" states and available in many others. PIP is broader than MedPay — it covers lost income and essential services, not just medical bills.
What PIP Coverage Includes
PIP is the most comprehensive first-party medical coverage you can carry. Standard PIP policies cover:
| Coverage Component | What It Pays | Typical Limit |
|---|---|---|
| Medical expenses | Hospital, surgery, doctor, rehab, medication | $10,000–$50,000 |
| Lost wages | 60–80% of income lost due to injury | Up to policy limit |
| Essential services | Housekeeping, childcare, lawn care | $20–$50/day |
| Funeral expenses | Burial and funeral costs | Up to policy limit |
| Survivor benefits | Benefits to dependents if you die | Up to policy limit |
States That Require PIP (No-Fault States)
| State | Minimum PIP Required | Year Established |
|---|---|---|
| Florida | $10,000 | 1971 |
| Hawaii | $10,000 | 1974 |
| Kansas | $4,500 | 1974 |
| Kentucky* | $10,000 | 1975 |
| Massachusetts | $8,000 | 1971 |
| Michigan | $250,000 (unlimited option) | 1973 |
| Minnesota | $40,000 | 1975 |
| New Jersey | $15,000 | 1983 |
| New York | $50,000 | 1974 |
| North Dakota | $30,000 | 1975 |
| Oregon | $15,000 | 1975 |
| Pennsylvania* | $5,000 | 1984 |
| Utah | $3,000 | 1974 |
*Kentucky and Pennsylvania are "choice" no-fault states — drivers can choose to opt out of PIP and retain the right to sue.
PIP vs. MedPay: Key Differences
| Aspect | PIP | MedPay |
|---|---|---|
| Medical bills | ✅ Covered | ✅ Covered |
| Lost wages | ✅ Covered | ❌ Not covered |
| Essential services | ✅ Covered | ❌ Not covered |
| Funeral expenses | ✅ Covered | ✅ Covered |
| Deductible | Often has deductible | Usually no deductible |
| Cost (annual) | $100–$400 | $50–$150 |
| Available in | 12 no-fault states + others | Most states |
How PIP Works in No-Fault States
In no-fault states, your PIP coverage pays your medical bills and lost wages regardless of who caused the accident. In exchange, your right to sue the at-fault driver is limited:
- Pure no-fault: You cannot sue unless injuries exceed a serious threshold (like death, permanent injury, or significant disfigurement)
- Choice no-fault: You can choose PIP coverage and retain lawsuit rights (KY, PA)
- Thresholds vary: Some states use a verbal threshold (described injuries), others use a monetary threshold (dollar amount of medical bills)
⚠️ In no-fault states, you must file a PIP claim with your own insurer first. You cannot sue the other driver until you've exhausted PIP benefits.
PIP Deductibles and Limits
| State | Typical PIP Options | Notes |
|---|---|---|
| Florida | $10,000 minimum | 80% medical, 60% lost wages |
| New York | $50,000 minimum | Comprehensive coverage, no deductible required |
| Michigan | Unlimited (PIP) | Highest coverage, highest premium |
| Pennsylvania | $5,000 minimum (opt-out available) | Choose limited or full tort |
You can often choose higher PIP limits for a small premium increase. Going from $10,000 to $25,000 may cost only $20–$50 more per year.
PIP and Health Insurance Coordination
PIP often serves as primary coverage for auto accident injuries, meaning your health insurance won't pay until PIP limits are exhausted. This is important:
- Your PIP pays first up to its limit for accident-related medical bills
- Your health insurance pays second after PIP is exhausted
- Workers' comp may take priority over PIP in job-related accidents
If you have good health insurance, you might consider lower PIP limits. If you have no health insurance or a high-deductible plan, max out your PIP.
How to File a PIP Claim
- Seek medical attention immediately — Document all injuries
- Notify your insurer — File within 14–30 days (varies by state)
- Submit medical bills — Your insurer pays healthcare providers directly
- Submit proof of lost wages — Pay stubs, employer documentation, tax returns
- Submit essential services claim — Receipts for housekeeping, childcare, etc.
PIP Deadlines
Most PIP states have strict deadlines for filing claims and submitting bills. Missing these deadlines can result in denial of coverage.
Key Takeaways
- PIP is no-fault coverage that pays medical bills, lost wages, and essential services regardless of who caused the accident
- Required in 12 states with varying minimum limits ($3,000–$50,000+)
- PIP is broader than MedPay — it covers lost income and household help
- In no-fault states, PIP is your primary source of accident medical coverage
- You can usually increase PIP limits for a modest premium increase
- PIP claim deadlines are strict — file promptly after an accident
Last updated: July 2026
Disclaimer: This article provides general information about Personal Injury Protection (PIP) coverage. State requirements, coverage limits, and policy terms vary significantly. Always review your policy documents and consult with a licensed insurance agent for advice specific to your situation.