What Does Personal Injury Protection (PIP) Generally Cover?

If you want to legally drive your car, you need to secure your license, obey all the laws of the roads and make sure to have the proper auto insurance policy required by your state. In many states, personal injury protection (PIP) is mandatory and offers a great layer of insurance protection during your time of need. Not only will having the proper minimums of auto insurance help you to be a law abiding citizen, it can end up preventing financial ruin that can be triggered by a severe auto accident.

Personal Injury Protection Coverage

PIP in your auto insurance policy coverage generally covers costs incurred as the result of an accident without having to assign fault to any one of the participating parties involved in a collision in no-fault states. No fault states require that a driver’s own insurance policy will cover their damages regardless of who caused the accident or has been determined “at fault” by the police. The purchase of personal injury insurance is commonly required in addition to liability coverage in no-fault states. PIP coverage typically kicks in for smaller auto accident insurance claims, usually up to around $10,000 worth of claims.

PIP Requirements

If you and your passenger are injured in an accident, personal injury coverage is the portion of your insurance policy that will help cover some expenses. PIP covers the medical expenses incurred by the accident for both you and your injured party, plus any lost wages that may come from not being able to work and funeral expenses in the worse case scenario collision. 16 states require personal injury protection in their insurance coverage. They are:

  • Colorado
  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Oregon
  • Utah

Even in the states that require personal injury protection coverage, there are some exceptions to what the policy will cover. They are:

  • Injuries caused by farm equipment, recreational vehicles or motorbikes.
  • Voluntary self inflicted intentional injuries
  • If a felony was occurring the time of the accident