What is PIP insurance?
Personal Injury Protection (PIP) is a first-party benefit that pays for crash-related medical care and certain economic losses for you and your passengers regardless of fault. As of 2025, 12 states require no-fault/PIP systems: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah; three of these—Kentucky, New Jersey, and Pennsylvania—are “choice no-fault,” allowing motorists to elect a tort option that changes lawsuit rights and how PIP applies (Insurance Information Institute). The PIP limit or option you select determines how much is available: for example, Florida requires $10,000 PIP with set payment percentages (Florida Stat. §627.736); New York includes $50,000 of Basic Economic Loss (NY DFS); and Michigan lets drivers choose among PIP medical levels (unlimited, $500,000, $250,000, $50,000 for certain Medicaid enrollees, or opt-out with Medicare A&B) under its post-2020 reform (Michigan DIFS). No state has added or repealed a no‑fault system since 2020; Florida’s periodic repeal efforts have not been enacted as of 2025 (Florida Stat. §627.736).
No-Fault States
Current no-fault states are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah (III). Kentucky, New Jersey, and Pennsylvania are “choice no‑fault”: you can elect a tort option (e.g., Full Tort vs. Limited Tort in PA) that affects whether and when you may sue for pain and suffering and how PIP/first‑party benefits apply (true no-fault states; see also Pennsylvania Insurance Department and NJ DOBI Buyer’s Guide). Some at‑fault states require insurers to offer PIP that drivers may reject in writing (for example, Washington: Washington OIC). Hover over blue states for more information about their unique no-fault laws.
⬤ = PIP is not required and insurers are not required to offer it
⬤ = Insurers must offer PIP but drivers can opt out of the coverage
⬤ = PIP is required for all drivers
What does PIP cover?
PIP pays first for covered medical care and specified economic losses after a crash, regardless of fault. Coverage details and limits differ by state: Florida pays 80% of reasonable medical expenses and 60% of lost income up to $10,000, with a $5,000 death benefit and a $2,500 cap if the injury is not deemed an emergency medical condition (§627.736); Massachusetts provides up to $8,000 per person per accident and, when you have health insurance, PIP typically pays the first $2,000 in medical bills before health insurance becomes primary (Mass.gov); New York’s Basic PIP includes up to $50,000 per person for medical and certain other losses (NY DFS).
- Medical expenses — All PIP plans cover crash-related medical care for the driver and/or passengers (e.g., hospital, physician, rehab, medication) up to the policy/state limit; examples include Florida’s 80% of reasonable medical expenses up to $10,000 (Florida), Massachusetts up to $8,000 per person per accident with health-insurance coordination (Massachusetts), and New York Basic Economic Loss up to $50,000 (New York).
In some states, PIP also covers:
- Lost wages — Many PIP plans reimburse a portion of lost income when you’re unable to work due to crash injuries; for example, New York pays 80% of earnings up to $2,000 per month for up to three years (NY DFS), and Utah provides disability income benefits equal to 85% of loss, capped at $250 per week for up to 52 weeks (Utah Code §31A‑22‑307).
- Loss of service — Essential/replacement services help cover household tasks while you recover; for example, New York pays up to $25 per day (NY DFS) and Utah requires at least $20 per day for up to 365 days (Utah).
- Funeral expenses — Several states include death/funeral benefits; for instance, Florida provides a $5,000 death benefit under PIP (§627.736).
In states where PIP insurance is available but not required, drivers may be able to pick and choose from the options listed above; for example, Washington requires insurers to offer PIP that drivers can reject in writing (Washington OIC). PIP differs from MedPay (medical payments) common in tort states: MedPay generally pays medical bills only and does not limit tort rights. Some PIP states coordinate benefits with health insurance—Massachusetts typically makes PIP primary for the first $2,000 of medical bills (Mass.gov)—and New Jersey lets consumers elect “health primary” under its Standard Policy to reduce premium (NJ DOBI). Michigan’s post‑reform choices (unlimited, $500k, $250k, $50k/Medicaid, or opt‑out/Medicare) significantly affect both premium and protection (Michigan DIFS).
What doesn’t PIP cover?
PIP covers injuries and specified economic losses only; it will not repair or replace your vehicle after a crash. To protect your car, consider collision and comprehensive. Regardless of fault system, you also need property damage liability to pay for damage you cause to others. In some PIP states, medical benefits may coordinate with health insurance (e.g., MA generally makes PIP primary for the first $2,000 in medical bills, then health insurance becomes primary: Mass.gov), and policyholders can face deductibles/copays or “health primary” elections (e.g., NJ) that change out‑of‑pocket costs (NJ DOBI).
What’s a “true” no-fault state?
There are 12 no‑fault jurisdictions requiring first‑party medical benefits. In nine, lawsuit rights for pain and suffering are limited by threshold rules; in three “choice no‑fault” states (Kentucky, New Jersey, Pennsylvania), motorists can elect a tort option that preserves broader lawsuit rights but still carry required first‑party medical benefits (III; PA Insurance Dept.; NJ DOBI). Across no‑fault states, you generally may sue for non‑economic damages only if you meet either a verbal (permanency) threshold or a monetary medical‑expense threshold, not merely because PIP is exhausted. No sweeping statutory overhauls to these threshold structures were enacted in late‑2024/2025, though broader tort changes in some states (e.g., Florida) affect cases once thresholds are met (NCSL).
There are two different systems for determining when a driver in a no-fault state is allowed to sue the other person after a car accident.
- The verbal threshold system defines qualifying injuries in descriptive terms (e.g., death, significant disfigurement, or permanent injury). Verbal thresholds are used in Florida, Michigan, New Jersey, New York, and Pennsylvania. Examples: Florida allows recovery for pain and suffering only in cases of death, significant and permanent loss of an important bodily function, permanent injury, or significant and permanent scarring/disfigurement (Fla. Stat. §627.737); New York applies the “serious injury” standard (death, fracture, significant disfigurement, loss of a fetus, permanent loss or limitation, or 90/180-day impairment) (N.Y. Ins. Law §5102(d)); New Jersey’s “lawsuit limitation” option similarly restricts non‑economic damages unless a statutory category is met (NJ DOBI).
- The monetary threshold system sets a dollar amount of medical expenses that must be exceeded before you may sue for pain and suffering. These are used in Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah. Typical statutory thresholds include approximately: Massachusetts $2,000; Minnesota $4,000; North Dakota $2,500; Utah $3,000; Kansas $2,000; Kentucky $1,000; and Hawaii $5,000 (consult current statute/regulator guidance; overview: NCSL).
The logic underlying PIP and limited tort law is to keep minor injury claims out of court, pay medical bills quickly, and reduce transaction costs associated with determining fault. This design can improve speed for straightforward injuries, but without strong cost controls it may face fraud/over‑utilization pressures in some markets (Insurance Research Council). Recent satisfaction research also shows that communication and cycle time drive consumer experience at claim time across all systems (J.D. Power 2025 Claims).
Filing Claims in a No-Fault State
PIP claims start with your own insurer. Prompt care and notice are critical: Florida requires initial treatment within 14 days for PIP benefits to apply (§627.736), and New York generally requires written notice within 30 days, providers to bill within 45 days, and insurers to pay or deny within 30 days (NY DFS). Many carriers now support digital first notice of loss and status updates to speed cycle time (CCC Crash Course 2025).
Payouts are not automatic—you must document injury, treatment, and wage loss. Insurers may require an Independent Medical Examination (IME) or an Examination Under Oath (EUO) under state rules to verify claims (NY DFS). If disputes arise, states provide pathways such as administrative PIP dispute resolution (NJ) or regulator assistance (MI DIFS) (NJ PIP info; Michigan DIFS – File a claim). Industry research links proactive, multi‑channel communication with higher claim satisfaction, even when repairs or medical reviews extend timelines (J.D. Power).
What’s Next?
- Learn more about your coverage: What is full coverage car insurance?
- Start shopping around: Car insurance buyer’s guide
- Compare top car insurance providers: Review of the best auto insurance companies
