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Last Updated November 2025
- Personal injury protection (PIP) insurance covers accident-related medical expenses, even if you caused the crash. The coverage extends to passengers, too.
- PIP can also pay lost wages and expenses related to essential chores that you can’t do while recovering.
- PIP rules vary from state to state. It’s required in most no-fault states.
- Medical payments coverage instead of PIP is available in some states.
- PIP does not cover property damage or non-accident-related medical care.
Personal injury protection (PIP) coverage can help pay for certain medical and recovery costs if you or anyone else in your car is injured in a covered car accident, no matter who was at fault. In most no-fault states, it’s required. In other states, it’s optional or not offered at all. Understanding how PIP works — and how it fits into your overall auto insurance policy — can help you decide if it’s right for you.
What does personal injury protection (PIP) cover?
If you’re in a car crash, PIP can help pay medical expenses for you and anyone else in your vehicle, according to the Insurance Information Institute. Costs covered can include hospital and doctors’ bills, surgery, X-rays, and other treatments related to the accident.
Even if you have complete health coverage, you may still need to pay a deductible or co-pays, and PIP coverage can help cover that. Health insurance also won’t pay for lost work time or expenses related to household chores, let alone funeral costs. PIP can.
Your auto insurance policy is required to include liability coverage — but that coverage pays for injuries to other people, not yours, and only if you’re at fault. PIP helps fill the gap.
Medical costs
These costs are commonly covered by PIP, but coverage specifics can vary by state and insurance provider and there may be limits or restrictions on certain types of care.
- Ambulance fees
- Emergency room visits
- Hospitalization
- Anesthesia
- Diagnostic services (X-rays, MRIs, CT scans, lab tests)
- Doctor visits
- Surgery
- Prescription medications
- Medical equipment and supplies
- Dental care needed because of accident-related injuries
- Mental health treatment for accident-related trauma, if deemed medically necessary
Lost wages
If your injuries keep you from working while you recover, PIP may help replace some of your lost income.
Rehabilitation costs
PIP can help cover bills for physical therapy and occupational therapy if they’re prescribed as part of your recovery.
Other expenses PIP may cover
- Extra expenses for essential chores you need help with because of your injuries — such as housecleaning, childcare, and errands.
- Funeral expenses, if someone dies in a crash.
Read more auto insurance FAQs.
What is a no-fault insurance state?
In no-fault insurance states, your own insurance helps pay for your accident-related expenses after an accident, regardless of who’s at fault. PIP insurance is almost always required in no-fault states.
How no-fault insurance works
Example. You cause a crash, and you, your passenger and the driver of the other car are hurt. Under no-fault insurance:
- Your PIP coverage could help cover medical costs related to crash injuries suffered by you and your passenger.
- The other driver’s PIP coverage could help with their medical costs.
- If either driver’s costs exceed PIP limits, their bodily injury liability coverage could kick in.
In at-fault states, your own bodily injury liability insurance covers injuries to people in the other vehicle if you’re at fault for the crash, but it wouldn’t cover you or your passengers, if you’re hurt.
How no-fault laws affect insurance claims
No-fault laws change the way auto insurance claims are handled — especially when it comes to accident-related expenses and PIP claims after a car crash. Here’s how that works and what that might mean for you:
- Your ability to sue is limited
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You typically can’t sue an at-fault driver for pain and suffering, unless your injuries meet the state’s “tort threshold” (a legal standard for serious injuries or expenses).
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These thresholds vary by state. Some use a monetary limit, for example $2,000 in medical bills. Others use a verbal definition, for example “significant disfigurement” or “permanent injury.”
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In a few “choice no-fault” states, drivers can opt out of the no-fault system and retain the right to sue over injuries.
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- Fault still matters — for some costs
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If you cause a crash, the other driver may still file a liability claim against you once their PIP is maxed out and tort thresholds are met.
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Likewise, if you're injured and your PIP doesn’t cover everything, you may be able to pursue additional damages, if the other driver was at fault.
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- Medical treatment may be subject to state-specific rules
- Some states require pre-authorization for certain treatments or limit how much providers can charge for care under PIP claims.
- No-fault rules apply to injuries — not property damage
- If your car is damaged, you’d usually need to file a claim under your own collision coverage or pursue reimbursement from the at-fault driver’s liability coverage.
States that operate under no-fault insurance
The number of states considered no-fault and requiring PIP coverage is hard to pin down. It’s hovered around a dozen in recent years, but state laws change and variations allowed by some states, including “choice no-fault,” complicate the count.
Roughly more than half the states are at-fault when it comes to car insurance, and PIP coverage is not offered. Instead, you can buy medical payments, also called MedPay, coverage, which can help pay medical expenses not covered by your health insurance, if you’re hurt in a crash that you caused. MedPay does not pay for lost wages nor the cost of replacing essential work.
Published lists of no-fault, choice no-fault and at-fault states vary. The only way to know for sure what your state’s rules are is to check its rules on your state’s insurance department website.
What isn’t covered by PIP insurance?
PIP does not help pay for:
- Property damage claims, including damage to your vehicle or others’.
- Non-accident-related medical expenses.
- Injuries sustained while committing a crime, such as fleeing from law enforcement or driving under the influence.
What is the difference between bodily injury liability coverage and PIP?
Both can cover medical costs that arise from car accidents, but they apply in different situations.
What does bodily injury liability coverage help with?
The bodily injury liability coverage in your car insurance can help pay medical and legal costs when people in the other vehicle are injured in an accident that you caused. It doesn’t help with the costs of your own injuries, or your passengers’. Bodily injury liability coverage is required by most states, which set minimum coverage levels.
How does PIP work with bodily injury coverage?
If you have PIP and bodily injury coverage: you and your passengers would be covered by PIP if you were injured, regardless of fault; bodily injury liability coverage can help people who are injured in other vehicles if you’re at fault.
Can both types of coverage come into play in a crash?
If you cause a crash, your bodily injury liability coverage could help pay for injuries to people in the other vehicle. PIP, on the other hand, helps you and your passengers, no matter who caused the crash. Even in no-fault states, when medical costs from a crash are higher than your PIP limit, you may be able to recover costs through your bodily injury coverage.
| Coverage Type | Who it covers | What it can pay for | When it’s applied | Where required Notes | Typical coverage limits |
|---|---|---|---|---|---|
|
PIP (Personal Injury Protection) |
You and your passengers, regardless of fault | Medical expenses, lost wages, rehab, funeral costs, essential services | You're injured in a car crash, regardless of fault (especially in no-fault states) | Required in many no-fault states | $2,500–$50,000 per person (varies by state) |
| Bodily injury liability | Helps pay for injuries you cause to other drivers, their passengers or pedestrians | Medical expenses, pain and suffering, legal costs for others | You're at fault in a crash and others are injured | Required in all states with minimum liability limits | $25,000–$100,000 per person / $50,000–$300,000 per accident |
- Who it covers: You and your passengers, regardless of fault
- What it can pay for:
- Medical expenses
- Lost wages
- Rehab
- Funeral costs
- Essential services
- When it’s applied: You're injured in a car crash, regardless of fault (especially in no-fault states)
- Where required: Required in many no-fault states
- Typical coverage limits: $2,500–$50,000 per person (varies by state)
- Who it covers: Helps pay for injuries you cause to other drivers, their passengers or pedestrians
- What it can pay for:
- Medical expenses
- Pain and suffering
- Legal costs for others
- When it’s applied: You’re at fault in a crash and others are injured
- Where required: Required in all states with minimum liability limits
- Typical coverage limits: $25,000–$100,000 per person / $50,000–$300,000 per accident
See policy for exact details. In the event of a conflict, policy language prevails.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.
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