Personal Injury Protection, or PIP, is a type of auto insurance coverage that helps pay for medical expenses and other costs after a covered car accident, regardless of who is at fault. It is sometimes called no-fault insurance because your own policy steps in to help cover your expenses without waiting for fault to be determined.
If you have ever wondered what would happen to your bills and your paycheck after a serious accident, PIP is exactly the kind of coverage worth understanding.
What does PIP cover?
According to the National Association of Insurance Commissioners, PIP helps cover a range of expenses after a covered accident, including:
- Medical treatment and hospital bills
- Lost wages if an injury prevents you from working
- Rehabilitation costs
- Funeral expenses after a fatal accident
- Essential services you cannot perform due to an injury, such as childcare or household tasks
Coverage details and limits may vary depending on the policy and the state you live in. That is why it is always smart to review your specific policy and talk with a licensed agent who can walk you through what is and is not included.
Where is PIP required?
PIP is required in some states, including many no-fault states, where each driver's own insurance covers their medical expenses regardless of fault. In other states, PIP may be offered as an optional add-on to your policy. In some states, similar first-party injury coverage may be structured differently or may not be available as PIP at all.
To learn more about how no-fault insurance works and which states require it, read how auto insurance works in no-fault states on the IIA Knowledge Center.
How is PIP different from Medical Payments coverage?
Both PIP and medical payments coverage, also known as MedPay, may help pay for medical expenses after an accident, regardless of fault. However, PIP is generally broader in scope and may also cover lost wages and other non-medical costs that MedPay simply does not address.
MedPay is typically limited to medical and funeral expenses only. Think of PIP as the more comprehensive option of the two, though availability and requirements for both coverages may vary by state.
Understanding the difference between these two coverages can make a big difference in how protected you are after an unexpected accident. Do not wait until something happens to find out what your policy actually covers.
Find affordable auto insurance options
Infinity Insurance Agency, Inc. (IIA) works with a network of over 20 insurance carriers to help you secure a personal auto insurance policy that fits your unique budget. Our Spanish bilingual agents have the experience to help you understand your coverage options, including the differences between MedPay and PIP and how either can be a benefit in case of a covered accident.
You deserve coverage that works as hard as you do. Call 1-855-478-3705 or get a free quote online today.
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