Add-on state

An add-on state is one where your own policy includes or offers personal injury protection, so your medical bills and lost wages are paid quickly regardless of fault, but the state places no limit on suing the at-fault driver. The benefits are "added on" to a traditional fault-based system rather than replacing part of it.

That is the key difference from no-fault insurance states, where PIP comes with a tort threshold that restricts lawsuits for pain and suffering. In an add-on state you can collect personal injury protection benefits and still bring a full liability claim, although your PIP insurer may be entitled to repayment from a later settlement.

The details vary. Arkansas, Delaware, Maryland, Oregon and Texas, for example, require or include PIP but have no lawsuit threshold. Maryland policies must include at least $2,500 of PIP unless the first named insured waives it in writing, and every Texas auto policy includes PIP unless you reject it in writing. In states without PIP, optional medical payments coverage plays a similar role. Think twice before declining these benefits: they usually pay faster than a claim against another driver.