Personal Injury Protection (PIP) Insurance: Which States Require It and What It Costs

What Does PIP Insurance Actually Pay For?

PIP reimburses five categories of expenses that stack up fast after an accident. Medical bills top the list: ambulance rides averaging $1,277, emergency room visits exceeding $2,700, surgical procedures, hospital stays, prescription medications, and physical therapy sessions that can run $150 to $350 each. Michigan's PIP system historically covered unlimited lifetime medical benefits, though a 2019 reform (PA 21) now lets drivers choose limits starting at $50,000 for Medicaid-enrolled individuals.

Lost wages make up the second-largest category. Most states reimburse 80% of your gross income for the period you cannot work, typically capped at 3 years in states like New York. Kansas PIP pays up to $900 per month in lost earnings, while New Jersey covers 80% of income with a $100-per-week maximum under the basic policy. Funeral and burial costs fall under PIP as well, usually between $1,000 and $5,000 depending on state minimums.

Household replacement services round out the coverage. If injuries prevent you from mowing the lawn, cleaning, or providing childcare, PIP compensates for hiring help. New York pays up to $25 per day for essential household services. Rehabilitation costs, including chiropractic care, occupational therapy, and prosthetic devices, also qualify under most state PIP statutes.

Which 12 States Require PIP Insurance?

Every no-fault state mandates PIP, but the minimum limits vary by more than $47,000 between the lowest and highest. Delaware and Oregon operate as at-fault states that still require PIP, making them exceptions to the no-fault pattern. Kentucky and New Jersey give drivers a choice between no-fault PIP coverage and the traditional tort system.

State	Min. PIP Limit	System	Key Details
Delaware	$15,000	At-fault + PIP	Covers medical costs and lost wages; stacks with health insurance
Florida	$10,000	No-fault (until July 2026)	Repeal effective July 1, 2026; shifts to $25K/$50K BI liability
Hawaii	$10,000	No-fault	Covers 80% of lost wages; $10,000 per person limit
Kansas	$4,500	No-fault	$4,500 medical, $900/month lost wages, $2,000 funeral
Massachusetts	$8,000	No-fault	$2,000 deductible option available to reduce premium
Michigan	$50,000 to Unlimited	No-fault	Drivers choose from 5 tiers; Medicaid enrollees can select $50K
Minnesota	$40,000	No-fault	$20,000 medical + $20,000 non-medical (wages, services)
New Jersey	$15,000	No-fault (choice)	Basic policy: $15K PIP; standard policy: $250K available
New York	$50,000	No-fault	Highest mandatory PIP in the U.S.; covers 80% of lost earnings
North Dakota	$30,000	No-fault	$30,000 per person for medical and rehabilitation
Oregon	$15,000	At-fault + PIP	Covers medical, income loss, childcare, and funeral expenses
Utah	$3,000	No-fault	Lowest PIP minimum; $3,000 medical per person

States Where PIP Is Optional but Available

Arkansas, Maryland, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin offer PIP as an optional add-on. Texas insurers must offer PIP with every policy; drivers who decline it must reject the coverage in writing. Washington requires insurers to include $10,000 in PIP by default, though drivers can opt out. Pennsylvania drivers choosing the "limited tort" option still get $5,000 in medical benefits, while those selecting "full tort" can purchase PIP up to $100,000.

Florida's PIP Repeal: What Changes on July 1, 2026

Florida's $10,000 PIP mandate ends on July 1, 2026, under legislation that shifts the state from no-fault to a tort-based system. Drivers will carry $25,000 per person and $50,000 per accident in bodily injury liability coverage, plus $5,000 in mandatory medical payments (MedPay). Property damage liability stays at $10,000.

Injured parties can now sue at-fault drivers directly for any injury, removing the old "significant and permanent" threshold that previously blocked lawsuits over minor injuries. That change benefits accident victims with moderate injuries but raises the risk of higher uninsured motorist claims if at-fault drivers lack adequate BI limits. Read more about Florida's no-fault law and the transition timeline.

PIP vs. MedPay: Side-by-Side Comparison

Confusion between PIP and MedPay costs drivers money every year. Both cover your medical expenses after an accident regardless of fault, but PIP includes lost wages, funeral expenses, and household services that MedPay does not touch. MedPay adds roughly $20 per year to a policy, while PIP averages $191 annually because of its broader scope.

Feature	PIP	MedPay	Health Insurance
Medical bills	Yes	Yes	Yes (with copay/deductible)
Lost wages	Yes (typically 80%)	No	No
Funeral costs	Yes ($1,000-$5,000)	No	No
Household services	Yes (some states)	No	No
Rehabilitation	Yes	Limited	Yes (with copay/deductible)
Deductible	$0-$2,000 (varies by state)	$0	$1,500-$8,000+
Covers passengers	Yes	Yes	Only if on your plan
Covers you as pedestrian	Yes	Yes	Yes
Typical annual cost	$191 average	$20 average	$7,911 average (individual)
Typical limits	$3,000-$50,000+	$1,000-$25,000	Plan-dependent
Required in	12 states	2 states (ME, NH)	Not required for auto claims

How Much Does PIP Insurance Cost?

National averages mask enormous state-level variation. Drivers in Michigan paid an average of $382 per year for PIP before the 2019 reform reduced rates by 18% for those choosing the $250,000 tier. New York PIP premiums average $290 annually because of the state's $50,000 minimum requirement. Utah drivers pay as little as $30 to $50 per year for the $3,000 minimum.

Five factors drive your individual PIP premium. Your ZIP code matters most: urban areas with higher accident rates and medical costs (think Detroit, Newark, or Miami) push premiums 40% to 60% above rural areas in the same state. Age plays a role too, with drivers under 25 paying 15% to 20% more for PIP. The coverage limit you select directly scales the price; jumping from $10,000 to $50,000 in PIP can double or triple the premium. Choosing a higher PIP deductible ($500 or $1,000 instead of $0) cuts costs by 10% to 25%. Finally, your claims history matters: one prior PIP claim can increase your premium by $50 to $120 at renewal.

PIP vs. Bodily Injury Liability: Two Different Jobs

Bodily injury (BI) liability pays medical bills for people you injure in an at-fault accident. PIP pays your own medical bills regardless of fault. Most no-fault states require both: PIP for your own protection, BI liability for others. New York mandates $50,000 in PIP and $25,000/$50,000 in BI liability. Kansas requires $4,500 in PIP alongside $25,000/$50,000 in BI. Confusing these two coverages leads to dangerous gaps, particularly for drivers who carry only the state minimum BI liability and assume it covers their own injuries.

What PIP Does Not Cover

PIP excludes vehicle damage entirely. Repairing a $15,000 fender replacement requires collision coverage, not PIP. Property damage to guardrails, fences, or other vehicles falls under your property damage liability policy. Injuries to people outside your car (the other driver, their passengers) require your BI liability coverage, not PIP.

Pain and suffering falls outside PIP in all 12 mandatory states. Recovering those damages means filing a lawsuit against the at-fault driver, which no-fault states restrict unless injuries meet a severity threshold (often called a "verbal" or "monetary" threshold). New York requires injuries to qualify as a "serious injury" under Insurance Law Section 5102(d) before a lawsuit can proceed. Michigan sets no monetary threshold but requires permanent serious disfigurement or impairment of an important body function.

How to File a PIP Claim: 4 Steps

How PIP Coordinates with Your Health Insurance

In most no-fault states, PIP is the "primary payer" for accident-related injuries. Your health insurer picks up remaining costs only after PIP limits are exhausted. That hierarchy means PIP absorbs your health plan's deductible first. A driver with $10,000 in PIP and a $5,000 health insurance deductible pays $0 out of pocket for the first $10,000 in medical bills.

Michigan changed this coordination rule in 2019. Drivers who select PIP limits below unlimited can choose to coordinate PIP with their health insurance, making health insurance the primary payer and PIP the secondary. Selecting that option cut annual PIP premiums by $200 to $500 for drivers with employer-sponsored health plans. New Jersey offers a similar coordination benefit under its standard policy, reducing PIP costs by approximately 15% when health insurance is designated as primary.

Drivers without health insurance face a sharper risk calculation. A $10,000 PIP limit covers roughly one emergency room visit and a few follow-up appointments. Average hospitalization costs after a car accident exceed $57,000 according to NHTSA crash cost data. Purchasing the highest available PIP tier ($50,000 in New York, $250,000 or unlimited in Michigan) provides a critical financial buffer for uninsured individuals.

Do PIP Claims Raise Your Insurance Rates?

Filing a PIP claim does not automatically trigger a rate increase in most states because PIP is a no-fault benefit. Insurers in New York, Michigan, and Minnesota generally cannot surcharge policyholders for using PIP coverage they already paid for. Progressive's underwriting guidelines confirm that PIP-only claims (with no at-fault accident attached) do not affect premiums in most no-fault states.

Exceptions exist. If the PIP claim accompanies an at-fault accident, insurers can surcharge for the accident itself. Florida insurers have historically raised rates after multiple PIP claims within a 3-year window, sometimes adding $50 to $150 per claim to the renewal premium. Shopping quotes from at least 3 insurers after a PIP claim reveals whether your current carrier is penalizing you unfairly. Rate comparisons by age group can help identify which companies offer the best post-claim pricing.

How to Save Money on PIP Insurance

• Select a higher PIP deductible. Massachusetts lets you choose deductibles of $100, $250, $500, $1,000, or $2,000. Jumping from $0 to $1,000 saves roughly 15% to 25% on the PIP portion of your premium.
• Coordinate PIP with your health insurance in states that allow it (Michigan, New Jersey). Making health insurance the primary payer can reduce PIP costs by $200 to $500 annually.
• Choose the tort option in New Jersey or Kentucky. New Jersey drivers who select the "basic policy" pay significantly less for PIP ($15,000 limit) compared to the standard policy ($250,000 limit), though they give up the right to sue for pain and suffering except in severe cases.
• Bundle your auto policy. Carriers like State Farm and Allstate discount PIP by 5% to 12% when you bundle home and auto coverage. Check low-income insurance options if affordability is a concern.
• Compare at least 3 quotes annually. PIP pricing varies by 30% to 50% between carriers for the same coverage level in the same ZIP code.

Should You Buy PIP If Your State Doesn't Require It?

Drivers in at-fault states like Texas, Virginia, and Washington should evaluate PIP based on three factors: their health insurance quality, their disability coverage, and their emergency savings. A driver with a $7,000 health insurance deductible and no short-term disability policy faces a potential $10,000+ gap after an accident, between medical copays and lost wages during recovery. Adding $10,000 in optional PIP for $40 to $80 per year closes that gap for roughly $0.11 to $0.22 per day.

Self-employed individuals benefit most from optional PIP. Traditional disability insurance replaces 60% of income after a 90-day waiting period. PIP starts reimbursing lost wages within 30 days with no waiting period in most states. Ride-share drivers, delivery contractors, and freelancers who lose income immediately after an injury can file PIP claims that cover 80% of their documented earnings.