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What is Personal Injury Protection (PIP) Insurance

PIP insurance is also known as "no-fault" coverage and usually includes three pieces of coverage:

  1. Medical Costs
  2. Lost Wages
  3. Funeral Costs

Medical Costs can consist of costs associated with (note, these can also be covered by your health insurance):

  • Ambulance charge
  • Hospital/ER bills
  • Medication
  • Rehab costs

Lost Wages means you can recover the wages you missed from the accident due to the inability to work. The coverage usually quotes on a $X/week or $X/month cap as well as a lifetime cap.

Funeral Costs are paid to next of kin in the event someone dies during a car accident. The coverage is usually not much, maybe $1,000. For better coverage against the worst-case scenario, you will want to look into a life insurance policy.

PIP insurance is mandatory in the following states:

PIP insurance laws by statefootnotes on PIP insurance laws

Note: some states, like PA, list the coverages separately instead of one PIP limit.

At your service,
Young Alfred