What is Personal Injury Protection (PIP), and Do You Need It?

Personal Injury Protection (PIP) is an auto insurance coverage that helps pay medical expenses and certain related costs after a covered accident, regardless of who caused the crash. Depending on your state's laws, PIP may also cover lost wages, essential services, and funeral expenses.

Whether you need PIP depends largely on where you live, since it's required in some states, optional in others, and unavailable in a few.

PIP helps cover medical expenses and other financial losses resulting from a covered auto accident, regardless of who caused it. While coverage varies by state, PIP is designed to reduce your out-of-pocket costs after a crash.¹

PIP commonly covers emergency medical treatment, hospital stays, doctor visits, rehabilitation, and necessary medical equipment. Many policies also help pay for lost wages, essential services such as childcare or housekeeping if you're unable to perform them, and, in some states, funeral expenses.

Whether you need PIP depends on your state's insurance laws and your financial situation. It's required in a number of states, optional in others, and unavailable in a few.²

PIP can be especially helpful for:

• Drivers who live in states where PIP is required.

• People with high health insurance deductibles or limited medical coverage.

• Self-employed workers or anyone who could lose income while recovering from an injury.

• Parents or caregivers who may need help paying for childcare or household services after an accident.

• People who regularly drive with passengers.

• Drivers who want extra financial protection beyond their health insurance and liability coverage.

Even if PIP isn't required where you live, it can provide valuable financial support after an accident by covering expenses that health insurance or other auto insurance policies may not fully pay. 

Start by reviewing your state's requirements and your existing coverage. You can then choose a PIP or MedPay level on Luva and compare rates for that coverage.

Personal Injury Protection (PIP) and Medical Payments (MedPay) both help pay medical expenses after a car accident, but PIP typically provides broader financial protection.

MedPay is generally limited to medical and funeral expenses, while PIP may also cover lost wages, essential services, and rehabilitation costs, depending on state law.

If your state offers both coverages, MedPay can sometimes supplement PIP by helping cover medical costs after your PIP benefits are exhausted.

The right amount of PIP depends on your state's minimum requirements, your health insurance, and how much financial protection you want after an accident. If your state requires PIP, you'll need to carry at least the minimum limit, but purchasing higher limits may provide greater peace of mind if you're seriously injured.

Consider these factors when choosing your PIP coverage:

• Start by meeting your state's minimum PIP requirement, if one applies.

• Review your health insurance to understand what medical expenses and deductibles it covers.

• Consider higher limits if you have a high deductible or limited health insurance.

• Think about whether you'd need help replacing lost income after an injury.

• If you care for children or other family members, consider whether coverage for essential services would be valuable.

• Compare the added premium with the potential out-of-pocket costs you could face after a serious accident.

Not sure how much PIP coverage is right for you? Lu can explain PIP and MedPay in plain terms, then build your choice into a quote.

The cost of PIP varies, but it is often one of the lower-cost coverages on an auto policy relative to the protection it provides. However, your exact premium depends on a few key factors:

• Your state's PIP requirements.

• The coverage limit and deductible you choose.

• Your age and driving record.

• Where you live.

• Your vehicle and how it's used.

• Your insurance company and any discounts you qualify for.

If PIP is optional in your state, it's worth comparing the additional premium against the financial protection it provides. Even a modest increase in your premium could help cover thousands of dollars in medical bills, lost wages, and other covered expenses after an accident.