Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection pays your medical expenses, rehabilitation costs, and a portion of lost income after a car accident, no matter who was at fault. Unlike liability coverage, which pays the other driver's bills when you cause an accident, PIP covers you and your passengers immediately. You file a claim with your own carrier, receive payment within days, and avoid waiting months for the at-fault driver's liability insurer to settle.
- The other driver has liability insurance, but their carrier takes three weeks to accept fault. You have $4,200 in emergency room bills and miss a week of work. Your PIP policy pays your medical bills within five days and reimburses 80% of your lost wages, up to your policy limit. You don't wait for the other driver's insurer to settle.
- You swerve to avoid debris, hit a guardrail, and break your collarbone. You have no one to file a liability claim against. Your PIP policy covers your $6,800 in medical bills and physical therapy costs immediately. Without PIP, you pay out of pocket or file through your health insurance, which may have a high deductible.
- Your friend riding in your car sustains $3,500 in medical expenses. Your bodily injury liability coverage does not pay for injuries to passengers in your own vehicle. Your PIP policy covers your passenger's bills up to your policy limit, protecting both of you from out-of-pocket costs.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you have a high-deductible health insurance plan, no health insurance, or work as a contractor or freelancer with no paid sick leave. It also protects you if you frequently drive passengers who lack health insurance or if you want immediate payment without waiting for liability claims to settle.
Compare your health insurance deductible to the cost of a year of PIP premiums. If your deductible is $3,000 and PIP costs $180 per year, you break even after 17 years without an accident. If your deductible is $6,000 or you have no health coverage, PIP pays for itself the first time you file a claim.
How Much Does Personal Injury Protection Insurance Cost?
PIP adds $8 to $25 per month to your premium, or roughly $96 to $300 annually, depending on your coverage limit and deductible.
- Coverage limit — $2,500 policies cost significantly less than $10,000 policies.
- Deductible selection — choosing a $500 deductible instead of $0 reduces your premium by 15% to 25%.
- Claim history — filing a PIP claim can raise your premium at renewal, even if you weren't at fault.
- Household size — policies covering multiple drivers or passengers in your vehicle cost more.
- ZIP code — urban areas with higher accident rates and medical costs see higher PIP premiums.