Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection covers medical expenses, lost wages, and essential services like childcare after an accident, no matter who caused the crash. You file a claim with your own carrier instead of waiting for the at-fault driver's liability insurance to pay. PIP kicks in immediately, covering bills as they arrive, while liability claims can take months to settle.
- The other driver's liability insurance will eventually cover your medical bills, but the claim takes 90 days to process. Your PIP policy pays your $4,200 in emergency room costs within two weeks. You avoid collections notices and keep your credit intact while the liability claim settles.
- You swerve to avoid debris and hit a guardrail, breaking your wrist. You're at fault, so no other driver's liability insurance applies. Your PIP policy covers $3,800 in medical treatment and $1,200 in lost wages while you're off work for six weeks.
- Your spouse is injured while riding with you. Your liability insurance doesn't cover people in your own car. Your PIP policy pays their $6,500 in medical bills and $2,000 in lost income without requiring them to sue you or file a separate claim.
Who Needs Personal Injury Protection Insurance?
You should carry PIP if you don't have health insurance, work an hourly job where missing a week means losing rent money, or support dependents who rely on your income. It's also worth buying if you frequently drive passengers who aren't covered by your liability policy, like family members or carpool riders.
Compare your health insurance deductible to the cost of six months of PIP premiums. If your deductible is $3,000 and PIP costs $150 annually, you'd need to avoid paying that deductible twice in six years to break even. If you have no health coverage or a high-deductible plan, PIP pays for itself the first time you need it.
How Much Does Personal Injury Protection Insurance Cost?
PIP adds $8 to $25 per month to your premium, or $96 to $300 annually, depending on coverage limits and deductible.
- Coverage limit you select — $2,500 policies cost half what $10,000 policies cost.
- Deductible amount — choosing a $500 deductible instead of $0 cuts premium by 20 to 30 percent.
- Your ZIP code — urban counties with higher accident rates price PIP 15 to 25 percent higher than rural areas.
- Number of drivers on your policy — each additional driver increases PIP cost proportionally.
- Your claims history — filing a PIP claim in the past three years raises renewal rates by 10 to 15 percent.