What is PIP Insurance?

Personal injury protection (PIP) insurance is a type of car insurance coverage that helps cover medical expenses, lost wages, or funeral costs after a car accident, regardless of who is at fault. This is different from liability insurance. PIP insurance is also known as no-fault insurance and requirements for this coverage vary from state to state.

Many states have enacted “no fault” insurance laws, including PIP insurance, to simplify the process of providing benefits relatively quickly, without the time and expense of determining which driver is responsible for an automobile accident.

PIP Coverage and Benefits

PIP insurance is no fault coverage, meaning it will help cover medical expenses for you and your injured passengers after an auto accident, regardless of who is at fault. PIP coverage applies even if you’re not driving, such as if you’re injured after getting hit by a car while walking. PIP insurance can help pay for injuries and expenses after an auto accident, including medical bills, lost wages, and funeral expenses. PIP insurance also provides personal injury protection insurance to family members who live with you if they do not have their own auto insurance policy.

How PIP Differs from Other Insurance Types

PIP insurance helps cover your own medical expenses, regardless of who was at fault for your personal injuries. PIP insurance is “no fault” insurance so it is different from bodily injury liability coverage, which helps pay medical costs for the other driver if you are the one at fault for injuring the other driver or a pedestrian in an auto accident. PIP insurance is also different from medical payments coverage, also known as MedPay, which only helps pay for medical treatment, whereas PIP coverage can also help pay for lost wages, funeral expenses and other related costs.

PIP Insurance Requirements by State

PIP insurance is mandatory in Massachusetts and in many other no fault states. However, it is not required in the states that surround Massachusetts, including Connecticut, New Hampshire, Maine or Rhode Island. In fact, New Hampshire is the only state that does not require driver’s to have auto insurance at all, which is a good example why all drivers should be sure to purchase adequate insurance coverage for injuries caused by uninsured drivers. In states that require PIP insurance, every driver must file a claim with their own insurance company after an accident, regardless of who caused it.

In Massachusetts, the minimum required PIP coverage amount is $8,000 per person per accident. This means that, regardless of fault, each individual involved in the accident is entitled to up to $8,000 in benefits for medical expenses, lost wages, and related costs.

Managing Your PIP Coverage

PIP coverage is often coordinated with other health insurance policies that the injured party may have. This coordination helps prevent “double dipping” by ensuring that the injured party doesn’t receive more than 100% of their total medical expenses. PIP will cover the remaining medical costs after other insurance has paid its share.

Under Massachusetts insurance regulations, PIP will pay the first $2,000 in medical expenses.  Then, your health insurance will pay all medical bills over and above the $2,000 of medical expenses that are paid by PIP.  Any medical expenses that are not covered by your health insurance plan, such as deductibles and co-pays, will be submitted to PIP for payment, up to the maximum allowable under PIP which is $8,000.00.

Some auto insurers in Massachusetts will try to sell you an auto policy that includes a “PIP deductible” in order to reduce the amount of your premium. We do not recommend that anyone purchase a policy with a PIP deductible. Basically, you are waiving PIP coverage and agreeing to pay by yourself for the first $8,000 of your own medical expenses following a car accident. You might save a couple hundred dollars on your insurance premiums, but you could lose thousands of dollars if you get into an accident. This is not a risk that any Massachusetts driver should take.

Filing a PIP Claim

If you’ve suffered personal injuries in a car accident, report your claim as soon as possible to your insurance company. Your insurance company will assign a personal injury protection coverage claims representative who will send you a PIP application form which you must complete and return to the insurance company representative. This application includes basic information about the car accident, your injuries, and the expenses that you would like PIP to cover.

PIP Insurance FAQs

Is PIP insurance required in my state?

Yes, you must purchase essential services like personal injury protection insurance if you live in Massachusetts and own a car. No, if you live in Rhode Island, Maine, New Hampshire, Connecticut or Vermont.

Can I use PIP insurance if I’m at fault?

Yes, PIP is “no fault” coverage for things like medical care after a car crash, meaning that it will provide benefits without the time and expense of determining who is at fault.

How does PIP interact with my health insurance?

Basically, PIP will pay the first $2,000 in medical bills and health insurance will pay the rest. PIP will provide coverage for out-of-pocket costs such as co-pays and deductibles, and lost income, up to the $8,000 PIP policy limits.

Does PIP cover damage to my car?

No, PIP does not cover property damage claims. It only covers claims for bodily injuries.

Can I customize my PIP coverage limits?

You can customize PIP limits by buying a policy with a PIP deductible, but you should not do that. We strongly recommend against getting a policy with a PIP deductible.

Getting the Right PIP Coverage for Your Needs

If you live in Massachusetts and own a car, you are required under state law to have an auto insurance policy that includes personal injury protection, or “PIP” insurance. Be sure not to buy a policy with a PIP deductible, even if the premiums are less for a policy with a deductible. You want to buy PIP coverage that works when you have been injured in an accident!

What should I do if I need more help?

Contact our experienced car accident attorneys anytime. We are always ready to help! It is critical you figure out the right personal injury protection coverage before you have a PIP car accident you need it for.