No-Fault Car Insurance: What Is PIP Car Insurance and Do You Need It?

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Personal Injury Protection (PIP) insurance first came about in the 1970s as state legislatures began passing laws designed to streamline the auto accident claims process. Rather than getting caught up in whose fault an accident was and going to court, drivers could instead focus on getting their medical expenses covered through a "no-fault" approach. As of 2020, 14 states mandate no-fault insurance while another seven and Washington, D.C. make it optional. Learn more about PIP and find the best auto insurance for your needs.

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What Is No-Fault PIP Car Insurance?

PIP insurance is a particular type of car insurance that helps drivers cover the medical bills for themselves and their passengers in the event of a car accident — regardless of who caused it. Also known as no-fault car insurance, some states require this form of coverage while others keep it optional. Some don't even make it available to drivers.

What Does No-Fault PIP Insurance Cover?

Personal injury protection insurance covers medical expenses related to any injuries sustained by you and your passengers. If the coverage limit has not been reached once hospital bills are paid, it can also help pay related expenses, including health insurance deductibles, income lost due to injury, childcare, funeral services and other essential services.

What Does PIP Not Cover?

No-fault insurance does have its limits, and consumers should be aware that this type of coverage is not comprehensive and collision insurance and won’t cover vehicle damage, theft or damage to property belonging to others. It also cannot cover any medical costs that exceed coverage limits.

Which Companies Are Best for No-Fault PIP Coverage?

Most large, multi-state insurance companies offer no-fault PIP coverage, but they may not provide it at the same rates. Make sure you compare personalized quotes from each company to find your best price. A few companies to consider contacting are highlighted below.

State Farm

State Farm provides this form of coverage in no-fault insurance states and allows users to request a quote online or by working directly with a State Farm agent.

Allstate

Allstate ensures clients carry coverage for what matters most, including no-fault insurance. Quotes are available via a local agent or online.

Progressive

PIP coverage at Progressive can be purchased in any state that overs this type of insurance. Users can get an online quote or speak with a licensed representative.

How Does No-Fault PIP Car Insurance Work in a Claim?

Understanding how no-fault PIP insurance works is essential for filing a claim and getting your expenses covered. In most auto accident cases, PIP insurance acts as the primary coverage and pays out claims before other insurance types kick in.

After your PIP insurance coverage limit is reached, your health insurance plan will cover additional medical expenses. In states that do not offer PIP insurance, health insurance operates as the primary source for covering costs.

What Is the Cost of PIP Insurance?

The cost of no-fault PIP insurance varies based on factors such as where you live and how much coverage you purchase. In a recent MoneyGeek analysis, PIP insurance costs ranged from $50 to $200 per six-month period in states requiring no-fault insurance. Long the exception to these low figures, Michigan's no-fault insurance policies changed on July 1, 2020. This change is expected to help significantly decrease costs in the state, which previously could be as much as $500 per six-month period.

Which States Require No-Fault PIP Insurance?

Each state sets its own regulations around PIP insurance and per-person minimums. Use the table below to see how your state handles it.

No-Fault Personal Injury Protection Coverage Requirements by State

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  • State
    No-Fault PIP Requirement
  • Alabama
    No requirement
  • Alaska
    No requirement
  • Arizona
    No requirement
  • Arkansas
    No requirement
  • California
    No requirement
  • Colorado
    No requirement
  • Connecticut
    No requirement
  • District of Columbia
    No requirement
  • Delaware
    $15,000 per person
  • Florida
    $10,000 per person
  • Georgia
    No requirement
  • Hawaii
    $10,000 per person
  • Idaho
    No requirement
  • Illinois
    No requirement
  • Indiana
    No requirement
  • Iowa
    No requirement
  • Kansas
    $4,500 per person
  • Kentucky
    $10,000 per person
  • Louisiana
    No requirement
  • Mine
    No requirement
  • Maryland
    No requirement
  • Massachusetts
    $8,000 per person
  • Michigan
    $50,000 per person/waived if driver carries qualifying health insurance
  • Minnesota
    $40,000 per person
  • Mississippi
    No requirement
  • Missouri
    No requirement
  • Montana
    No requirement
  • Nebraska
    No requirement
  • Nevada
    No requirement
  • New Hampshire
    No requirement
  • New Jersey
    $15,000 per person
  • New Mexico
    No requirement
  • New York
    $50,000 per person
  • North Carolina
    No requirement
  • North Dakota
    $30,000 per person
  • Ohio
    No requirement
  • Oklahoma
    No requirement
  • Oregon
    $15,000 per person
  • Pennsylvania
    $15,000 per person
  • Rhode Island
    No requirement
  • South Carolina
    No requirement
  • South Dakota
    No requirement
  • Tennessee
    No requirement
  • Texas
    No requirement
  • Utah
    $3,000 per person
  • Vermont
    No requirement
  • Virginia
    No requirement
  • Washington
    No requirement
  • West Virginia
    No requirement
  • Wisconsin
    No requirement
  • Wyoming
    No requirement

Which States Have Optional No-Fault PIP Insurance?

Seven states and Washington, D.C. currently make no-fault PIP insurance optional, meaning you can elect to get this type of coverage, but it is not required. A signed waiver may be required if you choose not to purchase it.

Michigan No-Fault PIP Insurance: What to Know

From 1972 to 2020, Michigan's no-fault PIP insurance laws required drivers to have unlimited lifetime medical benefits coverage in the event of an automobile accident. While this started as a worthwhile endeavor, the rising cost of health care has made no-fault PIP insurance prohibitively expensive for many. The state legislature enacted a new law as of July 2, 2020, that gives drivers multiple PIP coverage programs to choose from, with options ranging from opting out of PIP entirely to still paying for unlimited PIP. The six options now available include:

  1. Opt-out (you must have Medicare or health insurance to qualify)
  2. $50,000 limit (only for those enrolled in Medicaid)
  3. $250,000 limit, including PIP medical exclusions (for those with qualified health insurance)
  4. $250,000 limit
  5. $500,000 limit
  6. Unlimited coverage

Florida No-Fault PIP Insurance: What to Know

Florida no-fault insurance is mandatory for all drivers, with the minimum (and maximum) coverage totaling $10,000 per person for medical expenses related to an auto accident. Florida PIP insurance will cover 60% of wages lost due to injury (up to $10,000) and up to $5,000 for funeral expenses.

Key Facts About PIP Insurance

While not required in every state, no-fault PIP insurance can be useful when you're involved in an auto accident with injuries and need money quickly to pay mounting medical bills.

Key Takeaways

insurance2

Fourteen states currently require no-fault PIP insurance; seven states and Washington, D.C. make it optional.

money

PIP insurance usually costs between $50–$200 every six months.

uninsured

Some states don't offer PIP insurance.

financialPlanning

If you live in Michigan, it’s important to know that PIP rules changed in July 2020.

About the Author


expert-profile

Katy McWhirter is a professional writer and owner of Heritage Creatives, a boutique historical branding agency. She has experience in nonprofit management, marketing, personal finance, government relations and education from her decade-plus writing career. Katy’s work has been featured in both the United States and abroad, highlighting the need for research-driven, accessible information on financial topics.

Katy earned her bachelor’s degree in social entrepreneurship from Belmont University in Nashville, Tennessee, and her master’s degree in modern history from the University of York in England. She spends her free time with her husband and two cats, restoring their 1901 home in Louisville and reading up on all things personal finance.


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