Can You Waive PIP in Maryland? What Personal Injury Protection Pays and How the Written Waiver Works

Yes, but only in writing, and the choice reaches beyond you. A Maryland auto insurer must provide at least $2,500 of personal injury protection (PIP) unless the first named insured signs an affirmative written waiver or qualifies for a separate, narrower rejection option, under Insurance Article § 19-505 (opens in a new tab) and § 19-506 (opens in a new tab). Full PIP pays accident-related medical bills, 85% of lost income, or essential household services, regardless of fault. A waiver binds every named insured, listed driver, and household family member 16 or older, and it stays in place through renewals until you withdraw it in writing.

Is PIP mandatory in Maryland?

PIP is the default. Every insurer that issues, sells, or delivers a motor vehicle liability policy in Maryland must include the PIP benefits in § 19-505 (opens in a new tab) unless they are waived under § 19-506 (opens in a new tab) or rejected under § 19-506.1 (opens in a new tab).

So, the coverage comes with the policy, and you have to take a written step to give it up. Maryland gives you three possible positions:

1. Full PIP, the standard coverage.
2. Limited PIP, the result of a written waiver that removes PIP for specific people on the policy.
3. Rejected PIP, a fuller opt-out available only when certain statutory conditions apply.

An insurer cannot refuse to write your policy because you won't waive PIP, under § 19-506(f) (opens in a new tab).

What does Maryland PIP pay?

PIP pays without regard to who caused the crash, under § 19-505 (opens in a new tab). The minimum benefit is up to $2,500, and it can go toward:

• Medical expenses: reasonable and necessary accident-related prosthetic, ambulance, dental, funeral, hospital, medical, nursing, surgical, and X-ray costs incurred within three years after the accident.
• Lost income: 85% of qualifying lost income.
• Essential services: reimbursement for essential family or household services when the injured person wasn't earning income at the time of the accident, such as a stay-at-home parent who can't care for the household after a crash.

Higher PIP limits may be available at an added cost, according to the MIA Auto Insurance Guide (opens in a new tab).

Because PIP pays regardless of fault, the money can start moving while questions about who caused the crash are still open. Payment also isn't held back because you have health insurance or wage-continuation benefits; PIP is payable without regard to those collateral sources under § 19-507 (opens in a new tab), as amended by 2013 Chapter 111 (opens in a new tab).

Who does full PIP cover?

Full PIP reaches more people than the policyholder. Under § 19-505 (opens in a new tab), it covers:

• The first named insured.
• Resident family members of the first named insured.
• Permissive users of the insured vehicle.
• Guests or passengers in the insured vehicle.
• Pedestrians injured in an accident involving the insured vehicle.
• People in, or getting on or off, a bicycle or other human-powered or animal-powered vehicle involved with the insured vehicle.

That list is why a waiver decision is a household decision, not just a line item on your own quote.

What happens when you sign a PIP waiver

The waiver has to follow a set process under § 19-506 (opens in a new tab):

• Before you waive, the insurer must give you written notice of the nature, extent, and cost of PIP coverage.
• The first named insured makes the waiver, and it must be affirmative and in writing.
• The waiver uses a form required by the Insurance Commissioner, printed in 10-point boldface type, explaining the coverage, its cost, the effects of the waiver, that the insurer must provide PIP if you don't waive, and that the insurer may not refuse to underwrite you for declining to waive.

Once signed, the waiver binds each named insured, each listed driver, and each member of the first named insured's family who lives in the household and is at least 16, according to the MIA PIP waiver form (opens in a new tab).

The waiver does not cut off everyone. The same form states that it does not impair the rights of other people, such as pedestrians or minor children. The exact policy and statutory wording control any specific claim, so ask the insurer to explain in writing who keeps PIP rights under your policy.

The separate-policy exception

A listed driver or household member who is bound by your waiver can still recover PIP under another Maryland auto policy if all three of these are true, under § 19-506 (opens in a new tab): that person is the first named insured on the other policy, hasn't waived PIP on it, and isn't a named insured on any other policy with a PIP waiver in effect. A grown child living at home with a car insured in their own name is the kind of situation this rule addresses.

Does a PIP waiver carry over at renewal?

Yes. A waiver made by someone continuously insured with the same insurer, or with the Maryland Automobile Insurance Fund, stays in effect until withdrawn in writing, under § 19-506(e) (opens in a new tab). The MIA waiver form (opens in a new tab) applies the waiver to the current policy or binder, future renewals, and replacement policies unless the first named insured gives written notice otherwise.

You won't sign a new waiver every year with the same insurer. If you switch insurers, tell the new company what you elected and ask it to confirm the election in writing.

How to add PIP back

To withdraw a waiver, send written notice to your insurer. The change cannot take effect earlier than the date the insurer receives your notice, according to the MIA waiver form (opens in a new tab). Restoring PIP after a crash will not reach back to cover that crash, so timing matters. Keep a copy of your notice and ask the insurer for written confirmation of the effective date.

Can you reject PIP entirely?

Full rejection is a separate option under § 19-506.1 (opens in a new tab), and it has stricter eligibility rules than a waiver. The MIA's Required Notice of PIP Coverage and Options Selection Form (opens in a new tab), which took effect with 2016 legislation (House Bill 900 (opens in a new tab)), presents full PIP, a limited waiver, and rejection as distinct choices, with rejection subject to statutory eligibility requirements and its own renewal rules.

Maryland Auto Insurance, the Maryland Automobile Insurance Fund, uses its own version of this form. For a Maryland Auto policy with minimum liability limits, the first named insured may be offered rejection of all PIP at application if the statutory conditions apply, including a prior-insurance condition, according to the MAIF PIP form (opens in a new tab). Rejection under that form applies to the named insured, listed drivers, resident family members, passengers, pedestrians, and permissive drivers on the policy. Maryland Auto's Skip PIP page (opens in a new tab) describes the option for eligible customers.

Because rejection removes PIP for passengers and pedestrians too, ask how it differs from a waiver on your specific policy and how it will be handled at renewal.

What happens after a crash without PIP?

If PIP was waived or rejected, the PIP benefits are unavailable under that policy to the people the election covers. Other coverage may help, each on its own terms:

• Health insurance for covered medical care, under your plan's rules, deductibles, and network.
• Medical payments coverage, if your auto policy includes it.
• The at-fault driver's bodily injury liability coverage, if fault is established and that driver's limits remain.

These don't line up neatly with PIP. Health insurance generally pays medical bills, but PIP also pays lost wages and medical expenses for certain household members, according to the MIA's auto insurance shopping tips (opens in a new tab). A liability claim against another driver depends on proving fault, that driver's coverage and limits, and how long a settlement takes. Before you sign a waiver, check what each person in your household would actually have: who has health coverage, whether it covers them in an auto accident, and who would lose income if hurt.

How to file a PIP claim

Report the accident to your insurer promptly and ask for its PIP claim forms. A policy may require you to file the original PIP claim within a set period, which must be at least 12 months after the accident, under Insurance Article § 19-508 (opens in a new tab). Once the insurer receives written notice of the accident, it must tell you the latest date to file, under COMAR 31.15.07.05 (opens in a new tab).

The insurer must pay benefits as they come due and within 30 days after receiving satisfactory proof of claim. Overdue payments earn simple interest at 1.5% per month, under § 19-508 (opens in a new tab). Keep medical bills, wage records, receipts for household services, and every letter from the insurer.

If a claim is denied or delayed, or you believe a waiver form wasn't handled properly, you can file a complaint with the Maryland Insurance Administration online through its complaint portal (opens in a new tab), by email at pccomplaints.mia@maryland.gov, or on paper, according to the MIA complaint page (opens in a new tab). Include the policy, the waiver or selection form, claim letters, bills, payment records, and a short timeline. For help by phone, call 410-468-2340 or 1-800-492-6116, according to the MIA contacts page (opens in a new tab).

Questions to ask an agent or insurer before you sign

• Is this quote showing full PIP, limited PIP, or rejection?
• What PIP limit is included, and is a higher limit available?
• Which named insureds, listed drivers, household members, passengers, and pedestrians keep PIP coverage under this choice?
• Does the waiver continue through renewals and replacement policies?
• What written notice will I get before signing, and will I receive a copy of the form?
• How do I revoke the waiver, and when would PIP restart?
• Does each household member have separate auto or health coverage that could respond?
• Does our health plan cover only medical bills, or other losses too?
• What is the policy's deadline to file an original PIP claim?
• What proof is needed for medical bills, lost wages, or essential services?
• Does the policy include medical payments coverage?
• How do I dispute a denied or delayed claim?

Riskado's directory lists insurance agencies across the US, including Maryland agencies by city and category, if you want to go through these questions with an agent. Our article on whether personal injury protection is worth it covers the coverage more broadly, and Maryland car insurance requirements covers the rest of a Maryland policy.

Frequently asked questions

Can I waive PIP because I have health insurance?

Maryland's waiver rules have no general health insurance exception; any waiver still has to follow the written-notice and affirmative-waiver process in § 19-506 (opens in a new tab). Health coverage is one factor a household can consider, but it may not replace PIP's lost-income or household-service benefits.

Does a PIP waiver affect my passengers?

Passengers who are named insureds, listed drivers, or household family members 16 or older are bound by the waiver. The MIA waiver form (opens in a new tab) preserves rights for others, such as pedestrians and minor children, while a full rejection on a Maryland Auto policy applies to passengers and pedestrians as well.

Who signs the PIP waiver?

The first named insured signs it, after receiving the insurer's written notice of PIP's nature, extent, and cost, under § 19-506 (opens in a new tab). Other drivers and household members don't sign separately, yet the waiver still binds them.

What happens if my insurer pays a PIP claim late?

PIP benefits are due within 30 days after the insurer receives satisfactory proof of claim. Late payments earn 1.5% simple interest per month under § 19-508 (opens in a new tab).

Making the choice

A PIP waiver is a written election that follows your policy from year to year and covers everyone 16 and older in your household. Read the notice the insurer gives you, list who in your home would be affected, and keep a signed copy of whatever you choose.