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Personal injury protection (PIP) is designed to cover medical costs related to an accident, no matter who is at fault.<\/span> Bodily injury liability coverage, on the other hand, provides coverage for medical expenses related to someone who is injured when you are at-fault.<\/span><\/p>" } } , { "@type": "Question", "name": "Do I Need Personal Injury Protection (PIP)?", "acceptedAnswer": { "@type": "Answer", "text": "

Personal injury protection (PIP) insurance coverage includes payment for injury-related medical and rehabilitation expenses, loss of income, and funeral and burial expenses. Bodily injury liability coverage includes payment for any physical injuries that occur in an accident you cause.<\/p>" } } , { "@type": "Question", "name": "What States Require Personal Injury Protection (PIP)?", "acceptedAnswer": { "@type": "Answer", "text": "

PIP auto insurance is required in Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah, and Puerto Rico.<\/span>
<\/p>" } } ] } ] } ]

Understanding Personal Injury Protection: Coverage, Limits & Benefits

By
Julia Kagan
Julia Kagan
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Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

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Updated October 02, 2025
Reviewed by
Charlene Rhinehart
Charlene Rhinehart
Reviewed by Charlene Rhinehart
Full Bio

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

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Part of the Series
Guide to Car Insurance
Guide to Car Insurance
Car Insurance Basics
  1. How Cars Are Valued
  2. Private-Passenger Insurance
  3. Cutting Car Insurance Costs
  4. How Much Does it Cost?
  5. How Much Do You Need?
Car Insurance Coverage
  1. Underinsured Motorist Coverage
  2. Uninsured Motorist Coverage (UM)
  3. Personal Injury Protection (PIP)
    CURRENT ARTICLE
  4. Medical Payments Coverage
Accidents, Driving Records, & Discounts
  1. Are Accidents Reported to the DMV?
  2. Can Your Insurance Company Drop You?
  3. Driving Record's Impact on Insurance
  4. Car Insurance Applications
  5. Good Student Discount
Definition

Personal injury protection (PIP), or "no-fault insurance," covers medical bills from an accident, regardless of who caused it.

What Is Personal Injury Protection (PIP)?

Personal injury protection (PIP), also known as “no-fault insurance,” is a type of automobile insurance that covers healthcare expenses associated with a car accident. PIP covers medical expenses and related costs for injured policyholders and passengers, even if they lack health insurance, and regardless of who is at fault. It also covers lost income, child care, and funeral expenses associated with the car accident. PIP doesn't cover property damage.

Different from liability insurance, which is required in every state, PIP is an optional insurance rider in most states. However, it is required in certain states and Puerto Rico. If medical expenses exceed your PIP coverage limits, health insurance may cover the remainder. PIP policies have a cap per person, which limits coverage when multiple people are hurt in an accident.

Key Takeaways

  •  Personal Injury Protection (PIP) insurance covers medical expenses for you and your passengers, regardless of who caused the car accident.
  • PIP is primarily available in no-fault states and also covers lost income, child care, and funeral expenses.
  • If medical costs exceed PIP limits, your health insurance might cover the remaining expenses.
  • PIP insurance is mandatory in 15 states and Puerto Rico, each with its own coverage requirements.
  • PIP differs from liability insurance, which only covers injuries to third parties when you are at fault.

How PIP Coverage Functions in No-Fault States

Auto insurance rules vary by state, and PIP is mainly offered in no-fault states.

In no-fault states, if you're injured in a car crash, your policy covers your medical care regardless of who caused the accident. Policyholders with PIP coverage can receive benefits even if the other driver doesn’t have insurance.

Important

PIP pays for medical expenses for people in the policyholder's vehicle, no matter who causes the accident.

Besides medical costs, PIP often covers lost income, child care, and funeral expenses from an accident. Some no-fault states offer medical payments coverage, but it usually has low limits and doesn’t cover these additional costs. PIP is mandatory in some states, while others offer it as an optional add-on.

PIP insurance is required in 15 states and Puerto Rico, and each state sets its own minimum coverage requirements. Insurance companies set the maximums, which vary but are typically no more than $25,000.

Real-World PIP Example: Coverage in Action

For example, say you live in Florida, where you are required to have a minimum personal injury protection policy of $10,000. If you caused an accident that resulted in injuries to you that required medical treatment costing $15,000, your PIP would cover $10,000. If you purchased a plan with more coverage, your insurance would pay for expenses up to that limit.

In contrast, liability insurance does not cover the cost of your medical bills if you were at-fault in an accident. It only covers expenses incurred by third-parties.

Distinguishing PIP from Liability Insurance: Key Differences

Personal injury protection is different from liability insurance. With PIP, medical costs are covered for the policyholders and anyone in their vehicle at the time of the incident, no matter who is at fault. With liability insurance, medical costs are covered for the third-party, not the policyholder, if it is determined that the policyholder is at-fault.

 Personal Injury Protection (PIP)  Liability Insurance
Covers the medical expenses from an accident for anyone in the policyholder's vehicle no matter who is at-fault Covers medical expenses of a third-party if the policyholder is at-fault
Required in 16 states Required in all states
Does not cover property damage Covers property damage to a third-party's property if the policyholder is at-fault; does not cover damage to your property

Liability insurance pays for injuries caused to another party, such as a pedestrian or the driver and occupants of another vehicle. It does not cover your own medical expenses if you caused the accident.

Liability insurance, which is required by every state (plus Puerto Rico and Washington, D.C.). PIP, which is only required in 16 states, is not a substitute for liability insurance.

There's also professional liability insurance (PLI). Such policies are generally taken out by financial advisors, business owners, landlords, doctors, lawyers—anyone at risk of being sued for damages and/or injuries.

Is PIP the Same as Bodily Injury?

Personal injury protection (PIP) is designed to cover medical costs related to an accident, no matter who is at fault. Bodily injury liability coverage, on the other hand, provides coverage for medical expenses related to someone who is injured when you are at-fault.

Do I Need Personal Injury Protection (PIP)?

Personal injury protection (PIP) insurance coverage includes payment for injury-related medical and rehabilitation expenses, loss of income, and funeral and burial expenses. Bodily injury liability coverage includes payment for any physical injuries that occur in an accident you cause.

What States Require Personal Injury Protection (PIP)?

PIP auto insurance is required in Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Utah, and Puerto Rico.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Progressive. "How Much Car Insurance Do I Need?"

  2. Allstate. "Personal Injury Protection (PIP) Coverage (AKA No-fault Insurance)."

  3. Insurance Information Institute. "Automobile Financial Responsibility Laws By State."

  4. Liberty Mutual. "Personal Injury Protection Coverage."

  5. Florida Highway Safety and Motor Vehicles. "Florida Insurance Requirements."

  6. Allstate. "Liability Insurance: How to Stay Protected."

  7. GEICO. "Personal Injury Protection Coverage."

  8. GEICO. "Professional Liability Insurance."

Part of the Series
Guide to Car Insurance
Guide to Car Insurance
Car Insurance Basics
  1. How Cars Are Valued
  2. Private-Passenger Insurance
  3. Cutting Car Insurance Costs
  4. How Much Does it Cost?
  5. How Much Do You Need?
Car Insurance Coverage
  1. Underinsured Motorist Coverage
  2. Uninsured Motorist Coverage (UM)
  3. Personal Injury Protection (PIP)
    CURRENT ARTICLE
  4. Medical Payments Coverage
Accidents, Driving Records, & Discounts
  1. Are Accidents Reported to the DMV?
  2. Can Your Insurance Company Drop You?
  3. Driving Record's Impact on Insurance
  4. Car Insurance Applications
  5. Good Student Discount
Read more
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