Every quote I get has PIP listed on it. What is PIP? Do I need it?

Written by Ryan Lowell on December 7, 2010 & Posted in Insurance

You're not Gladys Knight, so why do you need PIP?

Dear Ryan,

Every quote I get has PIP listed on it. What is PIP? Do I need it?

Thanks,
Bob H. Boston, MA

Great question, Bob.

PIP stand for Personal Injury Protection, and in many states it is a required component of your auto insurance policy. PIP offers medical coverage for injuries sustained in an accident, regardless of fault, for you and your passengers. PIP pays for medical bills, and may also offer coverage for replacement of services, loss of income, and even funeral expenses. Some states offer Medical Payments coverage, or MedPay, instead of PIP.

It is often faster and easier to file a PIP claim with your own insurance company after an accident, so your doctors can be paid right away. You don't have to wait for the claim to be settled before your doctors are paid, or pay out of pocket and wait to be reimbursed yourself. Your insurance company has an entire department of professionals to file and settle subrogation claims, so let them handle it.

After paying you, your insurance company will then go after the other driver's insurer for reimbursement (the process is called subrogation) if you are not at fault.

PIP can also cover you for injuries received outside of an auto accident. For example, in Oregon PIP coverage pays for injuries sustained from the use, maintenance, or ownership of an automobile. Slam the door on your hand and sever a finger? PIP will pay for that. Additionally your PIP insurance may cover you as a pedestrian or bicyclist if you are the victim of a hit-and-run. PIP coverage varies greatly by state, so be sure to read your policy carefully.

Your second question of whether you need PIP is a little tricky. In short, you may not have a choice, and a minimum level of PIP coverage may be mandatory. If you have good medical insurance and disability coverage, you may not need any additional PIP coverage, however. If you are without medical insurance, additional PIP may be a good idea.

You stand a greater chance of receiving a traumatic injury in your car than just about anywhere else, and PIP may be a cheap way to protect yourself against that risk. Get quotes on additional PIP options if they are available so you can do an effective cost/benefit analysis for your specific situation.

Ryan Lowell

SHARE THIS STORY

Featured Insurance Companies

Insurify™️ - Virginia Drivers Can Save Up to 50%

  • The easiest way to compare 20 real quotes from top brands
  • Prices starting from $29/mo
  • Trusted by more than 4 million drivers - 4.9 star reviews
  • As seen on Fox News, WSJ, Forbes, Fortune Magazine

Ask Our Expert

View All

Q. Will my policy pay off my car loan if my car is totaled?
A. An explanation of what happens if your car is totaled out when you still owe money on your car loan or lease. Read More

Q. Will car insurance cover my stolen personal items?
A. If someone steals personal items from your car, will car insurance cover those items? Read More

SHARE YOUR THOUGHTS

Required parameter not set.
Request a Quote for:
Go

Recent Insurance Stories

View All
If my car is totaled will my loan be paid off?
An auto insurance expert fields a question from a consumer who wants to know if their insurance policy will pay off their car loan if their car is totaled out. Find out what happens with your car loan if your car is declared a total loss. I totaled Read More...
  • Are my personal items covered by car insurance?
  • Find out how an SR-22 certificate of financial responsibility relates to your car insurance policy.
  • Find out whose insurance pays if you lend out your car and a friend causes an accident.
  • What is uninsured motorist coverage and do you really need it?
  • Featured Insurance Companies

    Cheap Auto Insurance - Save up to 40%

    • Top Rated Insurance Companies
    • Bundle Home & Auto for additional savings
    • Save up to 40%
    • Get Started Now!