Personal Injury Protection (PIP): What It Covers and Why You Need It

Imagine this: You're driving home from work when another car suddenly runs a red light and crashes into you. The impact leaves you with a sprained wrist, whiplash, and a hefty medical bill. Worse, you’re unable to work for a few weeks. Who pays for your expenses?

This is where Personal Injury Protection (PIP) comes in. PIP helps cover your medical bills and lost wages, regardless of who caused the accident. It’s designed to provide financial relief when you need it most, ensuring you can recover without immediate out-of-pocket expenses.

In this guide, we’ll break down what PIP covers, why it’s essential, and how to determine the right coverage for you.

What is Personal Injury Protection (PIP)? 

Personal Injury Protection (PIP) is a type of auto insurance that covers medical expenses and other costs after an accident, regardless of who was at fault. It falls under no-fault insurance laws, meaning you can receive compensation without needing to prove the other driver’s liability.

PIP is different from liability insurance, which only covers damages for the other party if you’re at fault. It also differs from collision coverage, which pays for vehicle repairs but not medical bills.

Depending on state laws, PIP may be required or optional.

For example, Florida, New York, and Massachusetts mandate PIP coverage as part of their no-fault insurance systems. This means drivers must carry it to cover medical expenses regardless of fault.

On the other hand, states like Arkansas and Texas do not require PIP. However, drivers can choose to add it as an extra layer of protection.

If you live in a no-fault state, having PIP is a legal requirement. If you're in an at-fault state, it's optional but can still provide valuable financial security.

Therefore, checking your state's insurance regulations can help you determine whether you need PIP coverage.

What Does PIP Cover?

PIP insurance can provide up to $8,000 in coverage per person injured in an accident. Here’s a breakdown of what it typically includes:

Medical Expenses

PIP covers medical costs related to the accident, including:

• Doctor visits and hospital stays

• Surgeries and medical treatments

• Rehabilitation and therapy

• Ambulance fees and emergency care

If you have health insurance, PIP generally covers the first $2,000 of medical expenses before your health insurance takes over as the primary payer.

However, PIP can still assist with out-of-pocket costs, such as copays, deductibles, and non-medical expenses, up to a total limit of $8,000.

Lost Wages

If your injuries prevent you from working, PIP helps replace lost income. It typically reimburses 75% of your weekly income. 

This support can be crucial, especially if you have ongoing expenses like rent, utilities, or medical bills.

By easing the financial burden, PIP allows you to focus on healing without immediate worries about lost earnings.

Essential Services

If your injuries prevent you from performing daily tasks, PIP can also cover costs for:

• Childcare

• House cleaning

• Transportation for medical appointments

Funeral Expenses

In the worst-case scenario, PIP can help cover funeral and burial costs. These expenses can include funeral home services, transportation, and burial or cremation fees.

Having this coverage ensures that your loved ones are not left struggling with unexpected costs while grieving.

Why Do You Need PIP?

Many drivers assume they’re financially covered after an accident, but without PIP, you may be left paying for medical bills and lost wages on your own.

No-Fault Coverage

One of the biggest advantages of PIP is that it provides coverage regardless of who caused the accident. Traditional insurance claims require determining fault before paying out, which can take time.

PIP eliminates this delay by offering immediate financial assistance for medical expenses and other related costs.

Quick Access to Funds

Medical bills don’t wait, and neither should your insurance payout. PIP provides faster compensation than traditional liability claims, which can take months to process.

This quick access to funds is critical for covering hospital bills, rehabilitation, and everyday expenses while you recover.

Protection Against Uninsured Drivers

Not all drivers on the road have insurance, and even those who do may not have enough to cover your losses.

If you’re hit by an uninsured or underinsured driver, PIP ensures you still receive compensation for medical expenses and lost wages.

Without it, you may have to rely on your health insurance or personal savings to cover these costs.

Fewer Legal Hassles

Since PIP is no-fault insurance, it reduces the need for lawsuits to recover damages.

In standard insurance claims, disputes over fault can lead to lengthy legal battles and delayed compensation.

With PIP, you get the financial assistance you need without waiting for the legal process to play out, allowing you to focus on recovery instead of fighting for compensation.

What to Expect When Filing a PIP Claim 

If you’ve been injured in an accident, filing a PIP claim is straightforward, but you need to act quickly.

• Notify your insurance company – Report the accident and your injuries as soon as possible.

• Gather documentation – Collect medical bills, accident reports, and proof of lost wages to support your claim.

• Submit your claim – Fill out the necessary forms and provide the required evidence.

• Await processing – Your insurer will review your claim and approve or deny compensation based on your policy limits.

Tip: The faster you submit the necessary paperwork, the sooner you’ll receive your payout.

Why You May Need a Car Accident Lawyer

PIP insurance can be confusing, and many drivers are unsure of its limits. While it helps cover medical bills and lost wages, it may not be enough for serious injuries.

For example, in Massachusetts, PIP covers up to $8,000, but if your expenses exceed this, you may need to seek compensation from the at-fault driver’s insurance. This process involves strict rules and deadlines, which can be hard to navigate alone.

In such a case, a Boston car accident lawyer can help you understand your options, negotiate with insurers, and handle any disputes. If needed, they can take legal action to ensure you get the full compensation you deserve.

DiBella Law Injury and Accident Lawyers is a trusted firm with experience in handling PIP claims and car accident cases. They offer free consultations and work on a contingency fee basis, meaning you pay nothing unless they win your case. 

Common Misconceptions about PIP

Many drivers misunderstand PIP and how it works. Here are some common myths and the truth behind them:

Myth 1: PIP is only for minor injuries

PIP covers medical costs for all types of injuries, from minor cuts and bruises to serious conditions requiring hospitalization or surgery. Even long-term rehabilitation expenses can be covered, depending on your policy.

Myth 2: Filing a PIP claim will increase my premiums

Since PIP is no-fault coverage, your premiums won’t automatically go up just because you file a claim. Insurers consider multiple factors when adjusting rates, so you shouldn’t hesitate to use your coverage when needed.

Myth 3: PIP covers all accident-related expenses

PIP is designed to cover medical bills, lost wages, and essential services, but it does not pay for vehicle repairs or non-economic damages like pain and suffering. If you need compensation beyond what PIP provides, you may have to pursue a claim against the at-fault driver.

Conclusion

Personal Injury Protection (PIP) covers medical expenses, lost wages, and essential services after an accident, providing fast financial support regardless of fault.

If PIP is available in your state, consider getting the right coverage to protect yourself. However, it’s important to consult an insurance professional first to explore your options.

As always, drive safely and stay protected!

Author Bio

Christopher DiBella is the founding partner of DiBella Law Injury and Accident Lawyers. He knows the pain of injury from his own family’s experiences.

Chris earned his Bachelor’s degree from Boston University, graduating cum laude, and his J.D. from Suffolk University Law School. Among his many awards and recognitions are The National Trial Lawyers Top 25 Motor Vehicle Trial Lawyer, Top 100 Civil Plaintiff Lawyer, and Super Lawyers Rising Star.

With both skill and genuine empathy, Chris is dedicated to helping clients turn their struggles into successful outcomes.