Personal injury protection (PIP) pays medical bills, and often lost wages and other costs, for you and your passengers after a car accident, no matter who caused it. It’s the core of the no-fault system, where you file injury claims with your own insurer first.
PIP isn’t required everywhere, and it varies a lot where it is. Florida requires $10,000 of PIP, New York requires $50,000 of no-fault benefits per person, and Michigan lets you choose your medical coverage level.
Key Takeaways
- PIP pays injury-related costs for you and your passengers regardless of fault. Depending on the state, that can include medical bills, lost wages, replacement services and funeral costs.
- Twelve states have no-fault laws that require PIP or similar benefits. A few others, including Delaware, Maryland, Oregon and Texas, also require or include PIP but aren’t on the no-fault list.
- In no-fault states, you can sue the at-fault driver for pain and suffering only if your injury meets the state’s threshold, either a serious-injury definition or a dollar amount of medical bills.
- PIP is broader than medical payments coverage, which usually pays only medical and sometimes funeral costs.
What PIP Covers
The NAIC’s auto insurance overview says PIP “covers medical bills, lost wages, or funeral expenses.” The Insurance Information Institute adds that PIP pays these costs “for you and your passengers after a car accident, regardless of who is at fault.”
What you actually get depends on your state’s law and the options you choose. Here’s how PIP looks in a few states:
| State | What PIP includes |
|---|---|
| Florida | 80% of reasonable medical costs up to $10,000, 60% of lost income, replacement services and a $5,000 death benefit |
| New York | Up to $50,000 per person for medical costs, lost earnings of up to $2,000 a month for up to three years, and up to $25 a day for other reasonable expenses for up to one year |
| Michigan | Medical coverage at the level you choose, plus wage loss, replacement services and funeral and burial expenses |
| New Jersey | Medical expenses, income continuation, essential services, death and funeral benefits, with medical options from $15,000 to $250,000 or more |
| Kentucky | Up to $10,000 for medical expenses, lost wages up to $200 a week, replacement services and survivor’s benefits |
| Pennsylvania | At least $5,000 in medical benefits, with income loss, funeral and other benefits available as options |
How No-Fault Insurance Works
In a no-fault state, your own insurer pays for your injuries first, regardless of who caused the crash. The NAIC’s consumer guide puts it this way: “If you live in a no-fault state, your own insurance company pays for injuries to you and your passengers regardless of who’s at fault.”
The trade-off is a limit on lawsuits. The Insurance Information Institute says motorists in no-fault states “may sue for severe injuries and for pain and suffering only if the case meets certain conditions.” Those conditions are called thresholds.
Which States Are No-Fault?
The Insurance Information Institute lists 12 states with no-fault laws, plus Puerto Rico: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
Three of them let you choose. In New Jersey, Pennsylvania and Kentucky, you can give up the lawsuit limits and keep a full right to sue, usually for a higher premium. The default differs:
- New Jersey: The state’s buyer’s guide offers “Limited Right to Sue” and “Unlimited Right to Sue.” If you don’t make a choice on the coverage selection form, the limited option applies by law.
- Pennsylvania: The state’s insurance guide says limited tort saves on premiums but restricts pain-and-suffering claims. “If you fail to specially elect limited tort, you will be deemed to have elected full tort.”
- Kentucky: You can reject the no-fault limits in writing on a special form filed with the state’s Department of Insurance. Kentucky’s no-fault brochure notes that your liability premium may be higher if you do.
Lawsuit Thresholds
No-fault states use one of two kinds of thresholds for pain-and-suffering lawsuits:
| Threshold type | How it works | States |
|---|---|---|
| Verbal | You can sue only if the injury meets the state’s definition of a serious injury | Florida, Michigan, New Jersey, New York and Pennsylvania |
| Monetary | You can sue once medical expenses pass a set dollar amount | Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah |
Florida’s law, for example, allows pain-and-suffering damages only for significant and permanent loss of an important bodily function, permanent injury, significant and permanent scarring or disfigurement, or death. Kentucky allows a claim when medical expenses top $1,000 or the injury involves a broken bone, permanent injury or death.
New York updated its car-accident rules in May 2026. The current text of New York Insurance Law section 5102(d) lists the injuries that qualify as serious, such as death, dismemberment, significant disfigurement, a fracture and certain permanent or significant limitations of use of a body function or system. If you’re involved in a New York claim, check the current law or talk to an attorney, since older summaries may not reflect the changes.
PIP in Florida and Michigan
Florida
Florida requires at least $10,000 of PIP and $10,000 of property damage liability. Its PIP law pays 80% of reasonable medical expenses and 60% of lost income, up to $10,000 in total, plus a $5,000 death benefit. Two rules catch people off guard:
- The 14-day rule. You have to get initial treatment within 14 days after the accident for PIP to pay.
- The emergency medical condition rule. The full $10,000 is available if a physician or certain other providers determine you had an emergency medical condition. If a provider determines you didn’t, medical benefits are limited to $2,500.
Michigan
Since July 2020, Michigan drivers have chosen their own PIP medical coverage level. The state’s auto insurance site lists six options:
- Unlimited coverage, which is the default if you don’t choose
- Up to $500,000
- Up to $250,000
- Up to $250,000 with exclusions for people who have qualifying health coverage
- Up to $50,000, for named insureds enrolled in Medicaid whose household members have other coverage
- A full opt-out, for named insureds with Medicare Parts A and B whose household members have other coverage
Lower medical limits can cost less, but they can leave you paying more if you’re badly hurt. Other PIP benefits, like wage loss and replacement services, still apply.
States That Require PIP Without No-Fault Rules
The Insurance Information Institute also describes add-on states, where drivers collect PIP-style benefits from their own insurer but “there are no restrictions on lawsuits.” Several states that aren’t on the no-fault list require or include PIP. Delaware and Oregon require it. Maryland requires it but lets you waive it. Arkansas and Texas include it unless you reject it in writing.
PIP vs. Medical Payments Coverage
Both pay injury costs regardless of fault, but PIP usually goes further. The Texas Department of Insurance says PIP “is similar to medical payments coverage,” but “it also pays for things like lost wages and other nonmedical costs.”
| PIP | Medical payments (MedPay) | |
|---|---|---|
| Medical bills for you and your passengers | Yes | Yes |
| Lost wages | Usually | No |
| Replacement or essential services | In many states | No |
| Funeral costs | In many states | Sometimes |
| Where it’s used | No-fault states and some others | Available in many states and required in a few |
MedPay is required in a few places, including Maine ($2,000) and New Hampshire ($1,000, if you buy a policy). RateFrog’s guide to what minimum coverage covers explains how these coverages fit into a basic policy.
Do You Need More PIP Than the Minimum?
It depends on your other protection. Ask yourself:
- How much would you owe under your health insurance, including deductibles and out-of-network care, after a serious crash?
- Does your health plan exclude or limit auto accident injuries?
- Would you have disability coverage if you missed work?
- Who in your household would need help with daily tasks if you were hurt?
If your state lets you choose PIP limits, compare quotes at several levels. You can also compare car insurance quotes to see how insurers price the options where you live. For how other injury coverages work, see RateFrog’s guide to uninsured and underinsured motorist coverage.
Frequently Asked Questions
Does PIP Cover Passengers?
Yes. PIP generally pays for injuries to you and the passengers in your car. The details, including coverage for pedestrians and household members in other cars, depend on your state and policy.
Does PIP Pay for Car Repairs?
No. PIP pays injury-related costs. Collision coverage is the usual way to cover damage to your own car.
Is Florida Getting Rid of PIP?
Not as of September 2026. Bills to repeal Florida’s PIP requirement failed in March 2026, so PIP is still required.
Can I Sue the Other Driver in a No-Fault State?
For pain and suffering, you can if your injury meets your state’s threshold. In verbal threshold states, it has to meet the legal definition of a serious injury. In monetary threshold states, your medical expenses have to pass a set amount. Some states, such as Michigan and New York, also let you sue the at-fault driver for medical bills, lost wages and other economic losses beyond what your no-fault coverage pays.
Sources
- NAIC: Auto Insurance
- NAIC: A Consumer’s Guide to Auto Insurance (PDF)
- Insurance Information Institute: Background on No-Fault Auto Insurance
- Insurance Information Institute: What Is Covered by a Basic Auto Policy?
- Texas Department of Insurance: Auto Insurance Guide
- New York Department of Financial Services: Auto Insurance
- New York Insurance Law section 5102
- Florida Statutes section 627.736
- Florida Statutes section 627.737
- Florida HSMV: Insurance Requirements
- Michigan: Choosing PIP Medical Coverage
- New Jersey DOBI: Auto Insurance Buyer’s Guide 2026 (PDF)
- Pennsylvania Insurance Department: Auto Insurance Guide (PDF)
- Kentucky Department of Insurance: No-Fault Coverage Uncovered (PDF)