Personal injury protection – What you need to know

Personal injury protection – What you need to know

August 29, 2016
Personal injury protection
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Personal injury protection, or PIP, is something that you absolutely need to buy. Although it’s mandatory in only 15 states, you should always buy this type of insurance. It can be very useful if you are injured in an accident.

Why buy personal injury protection

As we all know, medical bills are no joke. They can quickly skyrocket and do a lot of harm to your finances. Personal injury protection can take care of these costs. Unlike liability insurance, where the insurance company of the driver responsible for the accident pays the costs, personal injury protection will cover expenses regardless of which driver was at fault.  Also, coverage extends to all the people listed on the policy.

This type of auto insurance can pay for as much as 80% of medical and other expenses, depending on the limits of the policy. These other expenses can include rehabilitation costs, lost wages due to injury or even funeral costs.

It’s important that you consult with your insurer to find out exactly what is covered in your car insurance policy.

Personal injury protection is mandatory in the following states:

  • Arkansas
  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Oregon
  • Pennsylvania
  • Utah

The best part

After an accident, you often have to wait for weeks or even months until the insurance companies determine blame and finally make payments. With personal injury protection, there is no need to assess blame. Medical and lost income payments are made as soon as possible, if the accident is covered. And you only have to deal with your insurance company.


Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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