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Dawson and Rosenthal
Dawson and Rosenthal

Understanding Personal Injury Protection (PIP) Car Insurance

Personal Injury Protection (PIP) car insurance, or no-fault insurance, is available to cover medical bills and other expenses related to an automobile accident, no matter who is at fault. The insurance covers the driver, policyholder, and their passengers, even if they lack health insurance. 

What are the Policy Limits?

Sometimes, medical care expenses can mount quickly and can be very expensive. When the medical bills exceed the automobile insurance policy’s PIP limits, health insurance can be applied to offset those expenses. A PIP policy typically limits what they will pay per person for each person, the driver, and the passengers in the car at the time of the accident. 

Does Everyone Have PIP Coverage?

Arizona and California laws do not require that drivers carry PIP. The optional insurance coverage is usually only required in no-fault states. No-fault means that each driver’s insurance will pay for their own damages, no matter who caused the accident. But they both operate under a fault-based insurance system. 

In each state, the driver responsible for causing the accident is responsible for paying for it. PIP is not required, but the benefits lend themselves to buying the optional coverage. If you sign up for PIP coverage and are in a car collision, you can receive benefits, even if the driver who caused the wreck was uninsured. 

PIP covers passengers and Drivers

One of the benefits of PIP is that even if another car causes an accident, the policy pays the driver and the passenger’s medical expenses. This type of coverage contributes to making medical care accessible for everyone who was harmed in the accident. The coverage may also pay for expenses such as the ones listed below:

  • Medical care
  • Loss of income
  • Childcare
  • Funeral expenses

Do all U.S. States Require PIP? 

Some states offer it as an optional addition to mandatory insurance coverage. Each state requires drivers to carry liability insurance.  But, PIP is only compulsory in the following 12 states and Puerto Rico: 

  1. Florida
  2. Hawaii
  3. Kansas
  4. Kentucky
  5. Massachusetts
  6. Michigan
  7. Minnesota
  8. New Jersey
  9. New York
  10. North Dakota
  11. Pennsylvania
  12. Utah

Each state government determines the minimum coverage required, while the insurance companies set the maximum range. These maximums rarely exceed $25,000. 

A Breakdown of How Personal Injury Protection (PIP) Works

PIP coverage is intended to help accident victims pay their medical bills and return to their everyday lives swiftly. No matter who is at fault, this insurance policy provides for medical bills, lost wages, and other expenses incurred in the accident for the driver and their passengers.

All residents of the U.S. are required to have liability coverage. Though, it only provides insurance coverage for the medical expenses of third parties, such as the other driver, their passengers, or pedestrians injured in the crash if the driver and policyholder caused the accident. Your medical expenses are not covered.

Liability insurance is required in all 50 states, plus Washington D.C. and Puerto Rico. It is important to note that PIP is not a substitute for a liability policy. But, in the states where it is not required, it can be a helpful supplemental insurance policy.

Reach Out Today

If you have been in a car accident and have questions about insurance coverage like how to appeal a denied claim, Dawson & Rosenthal’s car insurance dispute attorneys are ready to advise you today.