Need state-specific charts?
Our policy pillar guide maps every PIP limit, deductible, and coordination option. Pair it with the savings steps in Lower Your Premiums to pick smart limits without overpaying.
Personal Injury Protection (PIP) is the “fast-pay” coverage in no-fault states. It pays medical bills, a portion of lost wages, and household services for you and your passengers after a crash—regardless of fault. This guide explains what PIP covers, how state rules differ, how to coordinate with health insurance, and how much to buy so you are not stuck with out-of-pocket costs.
PIP covers medical expenses, a portion of lost income, essential household services, and funeral costs for you and your passengers after a crash, regardless of fault. You can often choose deductibles or coordinate PIP with your health insurance to lower premiums. In no-fault states it is usually mandatory; in some states it is optional but highly recommended.
What PIP covers
- Medical bills: ER, hospital, imaging, surgery, rehab, chiropractic, prescriptions.
- Lost wages: a percentage of income up to state caps.
- Essential services: childcare, cleaning, meal prep, snow removal if you cannot do them while recovering.
- Funeral expenses and survivor benefits (state-specific).
- Coverage extends to you, household members, and passengers; often applies if you are a pedestrian/cyclist struck by a car.
Table: PIP vs MedPay vs Health Insurance
| Benefit | PIP | MedPay | Health insurance |
|---|---|---|---|
| Medical bills | Yes, first-dollar up to limit | Yes, up to limit | Yes, subject to deductibles/coinsurance |
| Lost wages | Yes, % up to cap | No | No (unless disability policy) |
| Household services | Yes (state-specific) | No | No |
| Funeral/survivor | Yes (state-specific) | Sometimes small | No |
State-by-state variations
PIP rules differ. Use this quick map:
Mandatory PIP
FL, NJ, NY, MI, MN, OR, ND, HI, UT, MA, and others. You must carry at least the minimum.
Optional/Offered PIP
States like TX, WA, MD require an offer; you can reject in writing. Consider keeping it for quick payouts.
See our state requirements guide for exact minimums and options.
Table: Typical PIP benefits by state (examples)
| State | Med limit | Wage % / cap | Services | Notes |
|---|---|---|---|---|
| FL | $10k | 60% / $10k | Yes | EMC rules limit med payouts; see state specifics |
| NY | $50k | 80% / $2k/mo up to 3 yrs | Yes | Optional OBEL to add $25k |
| MI | Unlimited, or capped options | 85% wages up to cap | Yes | Coordination allowed; multiple limit choices |
Coordinating PIP with health insurance
Some states let you elect “coordinated” (secondary) PIP to lower premiums. Tips:
- Use coordinated PIP if your health plan is strong (low deductibles/out-of-pocket max).
- Keep PIP primary if your health plan is weak or has high deductibles.
- Ask how billing works (health first vs PIP first) to avoid delays.
Deductibles and excess PIP
Many carriers offer PIP deductibles or excess/added PIP:
- Deductible lowers the premium; only choose one you can pay immediately.
- Excess/added PIP boosts limits beyond the state minimum—good for higher incomes.
- Check if wage caps are sufficient for your salary; add excess if not.
How much PIP to carry (simple method)
- List your health plan deductible + out-of-pocket max.
- Estimate one month of take-home pay (for wage replacement needs).
- Add essential services cost for a month (childcare/cleaning).
- Choose a PIP limit that covers those numbers (and add excess if offered).
Table: PIP limit vs common expenses
| PIP limit | What it may cover | Best for |
|---|---|---|
| $10k | Basic ER + some wages | States with low costs; strong health plans |
| $25k–$50k | ER + surgery + a few months’ wages | Moderate health plans, higher incomes |
| Unlimited (where offered) | Major medical + long rehab | High-risk or high-income households |
Hit-and-run and pedestrian/cyclist coverage
In many PIP states, you’re covered even if you’re not in your car:
- PIP can cover you as a pedestrian or cyclist struck by a car (state-specific).
- File a police report quickly and notify your carrier immediately.
Claim steps for fast payment
- Report the claim immediately; get a claim number.
- Send itemized medical bills, wage proof, and receipts for services.
- Provide employer wage verification if required.
- Ask if your PIP is primary or coordinated to route bills correctly.
- Keep copies; respond quickly to adjuster requests to avoid delays.
Scripts to use
Agent (shopping): “Quote PIP at state minimum and higher limits. Show deductibles and coordinated vs primary pricing.”
After a crash: “Please confirm my PIP limit, wage % cap, and whether it’s primary or coordinated. Where do I email itemized bills and wage proof?”
If you reject PIP
In optional states you can reject PIP in writing. Think carefully:
- Dropping PIP saves a little but can leave you paying out-of-pocket before any liability payout.
- If you reject, keep strong MedPay and health coverage; consider disability insurance.
Coordination with disability and MedPay
PIP can work with disability insurance and MedPay:
- Short-term disability can supplement wage caps.
- MedPay can cover co-pays/deductibles if PIP caps out.
- UM/UIM and liability still matter—see UM/UIM guide and liability guide.
If you move states
PIP rules change with a move:
- Re-quote immediately in the new state; limits/coordination options may differ.
- Update garaging address promptly to avoid claim disputes.
- Check new requirements for PIP/MedPay; adjust deductibles and limits.
One-week action plan (10 minutes per day)
- Day 1: Find your PIP limit, wage % cap, deductible, and coordination status on your declarations page.
- Day 2: Compare against your health plan deductible/OOP max and one month of take-home pay.
- Day 3: Ask your agent for quotes on higher PIP and excess PIP; include coordinated vs primary pricing.
- Day 4: Decide on the deductible you can pay tomorrow.
- Day 5: Save your coverage summary and claim email address in your phone.
- Day 6: If in a stacking-allowed state, check how PIP interacts with multiple vehicles (state-specific).
- Day 7: Share claim steps with your household so anyone can submit bills quickly after a crash.
Bottom line
PIP is the fastest way to get medical bills and wages paid after a crash. Set a limit that covers your health deductible, a month of pay, and essential services. Choose primary vs coordinated based on your health plan, and pick a deductible you can afford today.
Take 15 minutes now: pull your PIP details, get quotes for better limits, and save your claim submission info. The right PIP setup keeps cash flowing when you need it most.