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7.10 Personal Injury Protection (PIP)

Some states require, or make available, Personal Injury Protection, commonly referred to as PIP coverage. PIP is also sometimes called no-fault insurance. PIP coverage pays certain expenses resulting from an auto accident, regardless of who caused the accident. Covered expenses may include medical costs and, depending on the policy and state law, other related expenses incurred by the insured or passengers occupying a covered auto. A key learning point is that PIP is designed to provide prompt payment for certain accident-related expenses without first requiring a determination of fault.

Personal Injury Protection, or PIP coverage, is not the same as Part B: Medical Payments Coverage under the Personal Auto Policy. PIP coverage is generally broader than Medical Payments Coverage. State law often establishes the minimum PIP limit that must be offered or carried, and insurers may also set maximum limits that are available to insureds. Depending on the state and policy, PIP may cover expenses such as:

  • Medical expenses
  • Funeral expenses
  • Lost wages resulting from the insured’s injury
  • Survivor benefits resulting from the insured’s death
  • The cost of essential services the injured insured is unable to perform, such as childcare or household services

A key learning point is that Medical Payments Coverage primarily focuses on accident-related medical expenses, while PIP may provide broader benefits for medical costs, income loss, survivor needs, and essential services.

PIP coverage does not apply to every type of loss arising from an auto accident. Common exclusions include:

  • Property damage, such as damage to another person’s vehicle or other property
  • Bodily injury to drivers or passengers in other autos involved in the accident
  • Injuries that occur while the covered auto is being used as a public or livery conveyance, such as transporting people or property for a fee

A key learning point is that PIP is designed primarily to cover certain injury-related expenses for the insured and eligible occupants of the covered auto. It is not intended to replace liability coverage for injuries or property damage caused to others.