What is PIP insurance?

Personal injury protection coverage, also known as PIP insurance or PIP coverage, may be your go-to if you, a spouse, relatives living in your household, anyone else named on the policy, someone in your vehicle or a pedestrian is injured or dies in an auto accident.

What does PIP insurance cover?

Personal Injury Protection (PIP) coverage may help pay for a portion of the following:

  • Medical treatment
  • Lost wages
  • Loss of services (like childcare expenses if you’re temporarily unable to care for your children)
  • Funeral expenses

What else should you know about personal injury protection insurance?

Some states require this insurance. Other states place limits on the maximum amount of expenses that can be claimed under this coverage. For example, if a state limits claims to 80 percent of the costs of medical treatment, you will be responsible for covering the remaining 20 percent of the costs.

Additionally, it’s smart to take into consideration all of your current expenses, and then factor in additional expenses like childcare, house cleaning services, etc. You want to make sure you have a well-rounded picture of all the things you’ll need covered in case of an accident-related injury that potentially leaves you bed-ridden.

Your health insurance coverage may influence whether you add PIP coverage to your auto insurance policy. Taking all these types of coverage into consideration together helps ensure that if you are in a serious accident, you will have adequate coverage to pay for your medical expenses (and other expenses too!).