What is Personal Injury Protection (PIP) coverage and how does it work?

Personal Injury Protection (PIP) is a type of auto insurance coverage that pays for medical expenses, lost wages, and other injury-related costs for you and your passengers regardless of who caused the accident. It is required in no-fault states (including Florida, New York, Michigan, and approximately a dozen others) and optional in fault-based states. PIP benefits typically cover: medical expenses up to the policy limit; a percentage of lost wages (usually 60–80% up to a weekly maximum); replacement services for household tasks you cannot perform due to your injuries; and sometimes funeral expenses and survivor benefits. In no-fault states, PIP is your primary source of compensation for minor injuries, and you can sue the at-fault driver only if your injuries meet a defined threshold of severity. PIP coverage does not create a subrogation right to recover from your personal injury settlement in many states, making it one of the most claimant-friendly insurance benefits available.