What States Require PIP Insurance Coverage

By

Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009 and has been published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also hosts a web-series car-review show and dabbles in the world of personal-finance writing.

His specialty is in the high-performance realm, but he has a deep love and understanding for all things automotive. Before diving into the world of writing, Justin was an automotive technician and manager for six years and spent the majority of his younger life tinkering with classic muscle cars.

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, Automotive Editor - June 1, 2016

PIP insurance, or personal injury protection insurance, eliminates the need for the driver deemed not at fault for an accident to sue the at-fault driver's insurance company to cover damages. This is called a no-fault car insurance system, and many states have adopted it because it results in quicker and less complicated settlements of claims.

It also reduces premium costs by lowering legal fees and court costs. Some states, however, are opposed to PIP insurance coverage because it limits the individual's right to sue. Since the no-fault system doesn't allow you to sue people who crash into you, you are required to buy PIP coverage in the states that use this system. Let’s look at the states that require it.

States that Require PIP Insurance Coverage

Along with the District of Columbia and Puerto Rico, there are 15 states in the U.S. that use the no-fault system and require you to buy PIP insurance coverage:

  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Oregon
  • Pennsylvania
  • Texas
  • Utah

Each of these states requires a different minimum for PIP coverage, so you should familiarize yourself with the local insurance laws if you happen to live in one of these states.

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PIP insurance coverage will pay you a certain percentage the damage caused in an accident for which you were not at fault. PIP insurance will also cover the costs of transportation to the hospital and other costs associated with personal injury.

Related Questions and Answers

What is the Recommended Coverage Option for Personal Injury Protection Insurance?

Personal Injury Protection coverage is not required by all states, so make sure your state requires it before you purchase coverage. PIP basically covers the cost of medical treatments for the driver and passengers. This type of coverage is especially important if you do not have medical insurance as you can be held liable for significant medical costs if you are in a major accident—this insurance will mitigate these costs. If you have medical insurance, you should purchase the minimum PIP your state requires. The majority of insurance companies will not sell more than $25,000 worth of PIP coverage, so your choices are pretty limited.

On Average, How Much Extra will Personal Injury Protection Cost Me on Car Insurance?

The cost of personal injury car insurance will vary for each individual driver. Insurance companies will take your driving record into account as well as your credit rating, the type of vehicle you are driving, and the amount of coverage you purhase. PIP insurance tends to fall into the middle group—it is not the most expensive coverage, nor is it the cheapest. As an average, budget roughly $5 to $20 per month for this coverage. PIP is not required by many states, so if you have adequate health insurance, this coverage is sometimes not necessary.

Does Personal Injury Coverage Cover Injuries for the Other Party Involved?

No, personal injury coverage helps cover the cost of your medical bills as well as other passengers in your vehicle. It will also help cover the medical costs of injured pedestrians, but it does not cover the other party involved in the accident. In addition to medical bills, PIP will often cover lost wages and funerals. PIP usually covers the driver first, and if there is coverage left, it can be used for the passengers in the vehicle. This type of coverage is often supplemental to health insurance. If you have high-quality health insurance, PIP is sometimes not necessary.

, Automotive Editor

Justin Cupler has specialized as an automotive writer since 2009 and has been published in multiple websites and online magazines. In addition to contributing to CarsDirect, Justin also hosts a web-series car-review show and dabbles in the world of personal-finance writing.

His specialty is in the high-performance realm, but he has a deep love and understanding for all things automotive. Before diving into the world of writing, Justin was an automotive technician and manager for six years and spent the majority of his younger life tinkering with classic muscle cars.

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