Personal injury protection
Personal injury protection, or PIP, is auto insurance that pays covered medical expenses and certain economic losses for eligible people hurt in a vehicle accident, generally without first proving fault. Depending on state law and the policy, it can also pay lost earnings, replacement services, rehabilitation, funeral expenses, or death benefits.
Also called: pip, personal injury protection coverage
PIP is first-party coverage, which means it pays the people in your policy who were hurt, not someone you injured. It reimburses specific economic losses such as medical bills and part of lost pay, and the limits, deductible and exclusions in your policy decide how much it pays. Your declarations page shows the PIP limit you actually have, and the state-specific policy form shows what that limit covers.
How PIP adds up after a crash
New York's basic no-fault coverage gives a clear set of numbers to work with. New York Insurance Law § 5102 (opens in a new tab) sets basic economic loss at up to $50,000 per person. Lost earnings are paid at 80%, up to $2,000 per month for no more than three years, and other necessary expenses are paid up to $25 per day for one year, all subject to statutory offsets. The New York Department of Financial Services (opens in a new tab) explains the same benefits for consumers.
The figures work like this in an example. The $18,000 medical bill and the 20 days are illustrative; the limits and percentages are New York's.
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Accident-related medical expenses | $18,000 |
| Lost earnings | $3,000 for one month |
| Wage benefit (80% of $3,000 is $2,400, capped at $2,000 per month) | $2,000 |
| Other necessary expenses ($25 per day for 20 days) | $500 |
| Total benefits calculated | $20,500 |
| Remaining basic economic-loss limit ($50,000 minus $20,500) | $29,500 |
The limit reimburses covered losses. It is not a cash amount available for any purpose, and pain and suffering is not part of New York basic economic loss.
Options and amounts that change what PIP pays
PIP varies by state and policy form, so the same word can mean different benefits on different policies. In New York, Insurance Law § 5103 (opens in a new tab) and the DFS circular on declarations pages (opens in a new tab) point to these choices and amounts:
- A $2,000 death benefit in addition to the $50,000 basic limit.
- An optional additional $25,000 for specified wage-loss and rehabilitation expenses after the first $50,000 is used up.
- No deductible, or a family deductible of up to $200.
Washington sets different statutory amounts. The Washington Office of the Insurance Commissioner (opens in a new tab) lists up to $10,000 for medical and hospital costs, $10,000 for lost wages, $2,000 for funeral costs and $5,000 for lost services, with higher limits available. Higher limits or added benefits raise the premium, and the amount for each option comes from your quote or declarations page.
Where you will see PIP
PIP is mainly an auto-policy coverage. You may find it on an auto quote, a binder, a declarations page, a renewal notice or a coverage-selection form, and in the personal auto policy's coverage schedule. It can also appear as a PIP, no-fault, basic-reparations or additional-PIP endorsement. After an accident, claim letters explain the benefits available, the proof required, wage-loss documentation, deadlines and what happens when benefits run out.
Homeowners, condo, renters, life, health and pet policies do not ordinarily include PIP. A business auto policy can include PIP or no-fault benefits where state law or the policy form provides them.
What Connecticut and New York require
New York requires first-party benefits under Insurance Law § 5103 (opens in a new tab) for covered people injured through the use or operation of a motor vehicle. Claim procedures are in 11 NYCRR Part 65 (opens in a new tab), and no-fault claims have strict time limits according to the New York DFS.
Connecticut does not require PIP on ordinary auto policies. Conn. Gen. Stat. § 38a-334 (opens in a new tab) makes bodily injury liability, property damage liability and uninsured-motorist coverage mandatory, and PIP is not on the mandatory list. Connecticut Insurance Department Bulletin PC 65 (opens in a new tab) records that the mandatory basic-reparations requirement ended for new and renewed policies on January 1, 1994, and optional basic or added reparations benefits and medical-payments coverage remain available. For the full list of what a Connecticut policy needs, see Connecticut car insurance requirements.
Questions to ask your agent or insurer
- What PIP or first-party benefits limit applies, and is it per person, per accident or an aggregate? The limit controls how much remains for covered losses.
- Does the policy pay medical expenses, lost earnings, replacement services, rehabilitation, funeral costs or death benefits? Benefits differ by state and policy form.
- Is there a deductible, and are health insurance, workers' compensation, disability, Medicare or other benefits primary or offsetting? Deductibles and offsets can reduce what PIP pays.
- What notice, medical-documentation, wage-proof and claim-filing deadlines apply? Missing a requirement can delay or limit benefits.
- Does my state require PIP, offer it, or permit rejecting it, and what coverage replaces it if I decline? State law decides whether PIP is mandatory, optional or unavailable. The question of whether PIP is worth it is easier to answer once you have these details.
Frequently asked questions
Is PIP the same as medical-payments coverage?
No. Both can pay specified medical or funeral expenses without regard to fault. PIP is often broader because it can add wage loss and other economic benefits, and in no-fault states it replaces the more limited medical-payments coverage, according to the NAIC (opens in a new tab).
Does PIP pay for pain and suffering?
PIP addresses specified economic losses, not non-economic damages such as pain and suffering. A bodily injury liability claim can address those damages where the law allows. Bodily injury liability is the coverage that responds when someone else makes a claim against the insured, as the Connecticut Insurance Department (opens in a new tab) describes it.
Can I decline PIP?
It depends on the state. Washington requires insurers to provide PIP unless the insured rejects it in writing. Texas requires insurers to offer PIP and permits rejection by written waiver, according to the Texas Department of Insurance (opens in a new tab). In Connecticut, which does not require PIP, medical-payments coverage may be available instead.
How is a no-fault system different from an add-on PIP system?
States use no-fault, choice no-fault or add-on PIP systems. In an add-on system, PIP benefits supplement the liability system, so the right to pursue a liability claim stays in place, according to the NAIC (opens in a new tab).