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Personal injury protection (PIP) explained
PIP pays your medical bills and lost income after a crash no matter who caused it. Which states require it, how much they require and how claims work.
Personal injury protection (PIP) is the part of a car insurance policy that pays medical bills, a share of lost income and some other costs for you, your household and your passengers after a crash, regardless of who caused it. It is the core of the no-fault system: in states that require it, your own PIP pays first and lawsuits against the at-fault driver are restricted. Required amounts range from a few thousand dollars to unlimited, depending on the state.
What PIP pays for
PIP is broader than medical payments coverage, which pays only medical and funeral bills. Depending on the state, PIP can cover:
- Medical and rehabilitation expenses: hospital, doctor, ambulance, X-rays, therapy.
- Lost income, usually a percentage of your earnings up to a monthly cap.
- Replacement services: paying someone for household tasks you cannot do while injured, such as childcare or cleaning.
- Funeral expenses and survivor benefits if the injured person dies.
PIP does not pay for damage to cars, and it does not pay for pain and suffering. Those are handled through collision coverage and, if your injuries are serious enough, a liability claim against the at-fault driver.
Who PIP covers
PIP is tied to people as well as the car. Florida's statute is a typical example: a policy must provide PIP to the named insured, relatives living in the same household, anyone driving the insured car, passengers in it, and pedestrians struck by it (Fla. Stat. 627.736). In most no-fault states your own PIP also protects you and your household when you ride in someone else's car or are hit as a pedestrian, which is why who pays first after a crash follows priority rules set in each state's law. See does car insurance follow the car or the driver?.
Which states require PIP
The Insurance Information Institute's state table lists PIP among the required coverages in Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania and Utah. (Arkansas, which the III also lists, requires insurers to include PIP but lets you reject it in writing - see Arkansas.) The rules within that group differ a great deal:
- True no-fault states pair PIP with limits on lawsuits for injuries. You can sue the at-fault driver for pain and suffering only if your injuries cross a tort threshold.
- Choice no-fault states (Kentucky, New Jersey and Pennsylvania) let drivers pick between limited and full rights to sue. See Choice no-fault: New Jersey, Pennsylvania and Kentucky.
- Waivable PIP states include it by default but let you opt out. In Maryland, insurers must provide PIP of at least $2,500 unless the first named insured signs an affirmative written waiver (Md. Code, Ins. § 19-506). In Texas, according to the Texas Department of Insurance, all auto policies include PIP and you must tell the company in writing if you do not want it.
In the rest of the country, PIP is either optional or not sold, and medical payments coverage fills the same role.
How much PIP selected states require
| State | Minimum PIP | Notes |
|---|---|---|
| Florida | $10,000 medical and disability, $5,000 death | Pays 80% of reasonable medical expenses and 60% of lost income; care must start within 14 days; capped at $2,500 without an "emergency medical condition" (Fla. Stat. 627.736) |
| Kentucky | $10,000 per person | Basic reparation benefits (KRS 304.39-020); you can reject the tort limitation in writing |
| Michigan | You choose a level | Unlimited, $500,000 or $250,000 for anyone; $50,000 only with Medicaid; opt-out only with qualifying health coverage such as Medicare Parts A and B (MCL 500.3107c) |
| Minnesota | $40,000 per person | $20,000 medical plus $20,000 for income loss and other non-medical costs (Minn. Stat. 65B.44) |
| New York | $50,000 per person | Lost earnings up to $2,000 a month for up to three years; other expenses up to $25 a day for a year (N.Y. Ins. Law § 5102) |
| Pennsylvania | $5,000 medical | Called first-party medical benefits (75 Pa.C.S. § 1711) |
Florida lawmakers have debated replacing PIP with mandatory bodily injury liability in recent sessions; the 2025 bill (HB 1181) died in committee, and the 2026 Florida Statutes still require $10,000 of PIP. Michigan's options date from its 2019 reform, which took effect for policies issued or renewed after July 1, 2020; see michigan's no-fault reform explained. For every other state, use the state car insurance requirements lookup.
PIP, health insurance and deductibles
In many no-fault states PIP pays first for crash injuries, ahead of your health insurance, but the order is set by state law and your policy. Some states let you choose a PIP deductible or coordinate PIP with your health plan for a lower premium. Michigan's opt-out and $250,000-with-exclusions options both depend on having qualifying health coverage, and choosing them wrongly can leave a gap. Before you lower PIP to save money, check:
- Does your health plan cover auto accident injuries, or does it exclude them when auto coverage exists?
- What are your health plan's deductible and out-of-pocket maximum?
- Does anyone in your household lack health coverage? They depend on your PIP.
- Do you have disability insurance or paid sick leave to replace lost income?
A worked example
Say you live in Florida, carry the minimum $10,000 PIP, and a crash sends you to the emergency room, where a doctor finds an emergency medical condition. Your reasonable medical bills come to $9,000 and you miss three weeks of work, losing $3,000 of gross income (hypothetical figures).
- PIP pays 80 percent of the medical bills, $7,200, subject to the fee schedules the statute allows.
- PIP pays 60 percent of the lost income, $1,800.
- That is $9,000 of your $10,000 limit. Any further costs fall to your health insurance, optional medical payments coverage, or a claim against the at-fault driver if your injuries meet the state's threshold.
Had the treating provider found no emergency medical condition, medical reimbursement would have been capped at $2,500. And had you waited more than 14 days to get initial care, PIP would not have paid medical benefits at all.
After a crash: a PIP checklist
- Get medical care promptly. Some states, Florida among them, require initial treatment within a set number of days.
- Notify your own insurer quickly, even if the other driver was at fault. PIP claims have notice deadlines.
- Keep every bill, receipt and pay stub. Lost income claims need proof of earnings.
- Ask which policy pays first if you were a passenger or pedestrian, or if more than one policy might apply.
- Track the tort threshold. If your injuries are serious, you may be able to sue the at-fault driver for losses PIP does not pay. A licensed attorney can explain your state's threshold. See no-fault vs at-fault states.
Key takeaways
- PIP pays medical bills, part of lost income and related costs for you and your passengers regardless of fault.
- About 16 states require or include PIP, from Pennsylvania's $5,000 to Michigan's unlimited option, and some let you waive it in writing.
- In true no-fault states, PIP comes with limits on suing for pain and suffering.
- Coordinate PIP choices with your health insurance before lowering limits.
- Act fast after a crash: treatment and notice deadlines can cut off benefits.