What Is PIP Insurance?

Personal injury protection, or PIP, insurance is a common part of auto insurance policies. It helps cover your medical expenses and other costs associated with an accident.

What PIP Covers

PIP is designed to protect you regardless of who was at fault in an accident. If you have this type of insurance, it will cover a certain percentage of your medical bills as well as a certain percentage of lost wages.

Benefits of PIP Coverage

If you include PIP in your insurance policy, you ensure that, in the event of an auto accident, you have coverage for the medical treatment you need regardless of whether the other driver has insurance or what his policy covers.

Another benefit of this protection is that you don't have to wait for necessary medical care. If you are injured in an accident, you can go to the hospital for treatment without having to wait for authorization or anything else to get started.

States That Require PIP

PIP is required by law in any state that has "no-fault" automobile insurance rules. Twelve states are in this category: Florida, Kentucky, Kansas, Hawaii, Michigan, Massachusetts, New Jersey, Minnesota, New York, Pennsylvania, Utah and North Dakota. The type of PIP coverage that you need varies from one state to the next, as their laws are not exactly the same.