PIP (Personal Injury Protection) by State 2026

By Mustafa Bilgic · Last updated Tuesday, May 26, 2026 · ~14 min read

Insurance regulations change frequently. Confirm coverage requirements with your state Department of Insurance and your individual policy declarations page. This article is general information, not legal or insurance advice. For accident-specific guidance, consult a licensed attorney in your state.

Personal Injury Protection (PIP) is the most misunderstood line on a car insurance declarations page. Drivers in no-fault states pay for it every year, never think about it until an accident happens, and then are shocked to learn how it interacts with their health insurance, their lost wages, and any potential lawsuit against the at-fault driver. This guide breaks down 2026 PIP by state, the no-fault vs at-fault landscape, tort thresholds, stacking rules, and the math behind a settlement that involves PIP layered with a bodily injury claim.

No-Fault vs At-Fault: The 2026 U.S. Landscape

The 50 states divide into three groups:

Mandatory no-fault (12 states): PIP is required; tort lawsuits are restricted by a tort threshold.
Choice or add-on (8 states + DC): PIP or similar coverage available; tort restrictions limited or none.
Traditional fault-based (30 states): No PIP; injured party recovers from at-fault driver's bodily injury liability.

State-by-State PIP Matrix (2026)

State	System	PIP Minimum	Tort Threshold	Statute
Florida	No-fault	$10,000	Verbal — permanent injury	Fla. Stat. § 627.736
Hawaii	No-fault	$10,000	$5,000 monetary	HRS § 431:10C-103
Kansas	No-fault	$4,500 + lost wages/services	$2,000 medical or specific injuries	K.S.A. § 40-3101+
Kentucky	Choice no-fault	$10,000	$1,000 medical or specific injuries	KRS § 304.39-020
Massachusetts	No-fault	$8,000	$2,000 medical or specific injuries	M.G.L. c. 90 § 34M+
Michigan	Choice no-fault (post 2019)	$50,000 to unlimited (selected)	Death, permanent serious disfigurement, serious impairment	MCL § 500.3107+
Minnesota	No-fault	$40,000 ($20K med + $20K wage)	$4,000 medical or specific injuries	Minn. Stat. § 65B.41+
New Jersey	Choice no-fault	$15,000 standard ($250K optional)	Verbal — permanent injury or specific	N.J.S.A. § 39:6A-1+
New York	No-fault	$50,000 basic	Verbal — serious injury (Ins. Law § 5102(d))	NY Ins. Law § 5101+
North Dakota	No-fault	$30,000	$2,500 medical or specific injuries	N.D.C.C. § 26.1-41
Oregon	Add-on PIP	$15,000	No threshold	ORS § 742.520+
Pennsylvania	Choice no-fault	$5,000	Limited tort if selected	75 Pa.C.S. § 1701+
Utah	No-fault	$3,000	$3,000 medical or specific injuries	Utah Code § 31A-22-302+
Delaware	Add-on no-fault (PIP)	$15,000 + $5,000 funeral	No threshold	21 Del. C. § 2118
Maryland	Add-on PIP	$2,500 (waivable)	No threshold	Md. Ins. § 19-505
DC	Choice no-fault	$100,000 medical	$5,000 medical or specific injuries	DC Code § 31-2401+
Arkansas	Optional MedPay equivalent	$5,000 (waivable)	None	Ark. Code § 23-89-202
Texas	Optional PIP add-on	$2,500 (waivable)	None	Tex. Ins. Code § 1952.151+
Washington	Optional PIP	$10,000 (waivable)	None	RCW § 48.22.085
Other 30 states	Fault-based	No PIP requirement	None — fault rules apply	State motor-vehicle codes

Anatomy of a PIP Claim

Report the accident promptly. Florida requires reporting within 14 days; other states have similar early-notice rules.
Submit application of benefits. Typically filed within 30 days of the accident.
Provide medical bills and records. Insurer pays providers directly or reimburses the insured.
Document lost wages. Employer letter, tax returns, pay stubs. PIP pays 60-85% of wage loss depending on state.
Insurer may require IME (independent medical examination). Refusing without cause can suspend benefits.
Continue treatment until medical improvement is reached.

What PIP Covers vs Does Not Cover

Covered (typical)

Medical expenses — reasonable and necessary diagnosis, treatment, and rehabilitation.
Lost wages (60-85% subject to state cap).
Replacement services (housekeeping, childcare, lawn care).
Funeral and death benefits ($1,500-$5,000 typical).
Survivor's loss benefits to dependents.

Not Covered (typical)

Pain and suffering or other non-economic damages.
Property damage to the vehicle.
Bills exceeding the policy limit.
Treatment for injuries from acts of war, racing, or commission of a felony.
Treatment without a referral when state law requires one (Michigan post-2019).

The Verbal Tort Threshold: New York Insurance Law § 5102(d)

New York has the most-litigated verbal tort threshold. "Serious injury" under § 5102(d) means:

Death;
Dismemberment;
Significant disfigurement;
Fracture;
Loss of a fetus;
Permanent loss of use of a body organ, member, function or system;
Permanent consequential limitation;
Significant limitation; OR
Medically determined injury preventing usual activities for 90 of the first 180 days post-accident.

Most NY auto bodily-injury settlements turn on whether the plaintiff can establish one of these categories with objective medical evidence (MRI findings, range of motion measurements, expert affidavits).

Florida PIP — The 14-Day Rule and EMC Limit

Florida PIP (Fla. Stat. § 627.736) imposes two important traps:

14-day rule: Insured must receive initial medical care within 14 days of the accident. Late presentation = no PIP coverage at all.
EMC requirement: Only emergency medical conditions (EMC) qualify for the full $10,000. Non-EMC injuries cap at $2,500. A physician's EMC determination is therefore worth $7,500 in coverage.

Michigan Post-2019: The Choice Levels

Coverage Level	Limit	Notes
Level 1	Unlimited	Pre-reform default; highest premium
Level 2	$500,000	Common middle choice
Level 3	$250,000	Standard reduced
Level 4	$50,000	Available only to Medicaid recipients
Opt-out	$0	For drivers with qualifying Medicare or self-funded health coverage

The post-2019 fee schedule limits provider reimbursement to a percentage of Medicare rates, ending the Michigan-specific "no-fault premium" pricing that providers historically charged.

Stacking and Coordination of Benefits

When multiple PIP policies could apply (driver's own, household relatives', commercial vehicle's), state law determines the order:

First priority: The insured's own PIP.
Second: PIP on the vehicle they were occupying.
Third (rare): Other PIP available through household.

"Stacking" in some states allows summing multiple policy limits. Florida prohibits stacking PIP; New York permits limited stacking on certain claims.

PIP Subrogation and the Bodily Injury Claim

When a no-fault state plaintiff also has a bodily injury claim against the at-fault driver:

PIP pays first dollar for medical and wages.
Plaintiff sues at-fault driver (if tort threshold met) for non-economic damages and excess economic.
PIP insurer asserts subrogation lien against the BI settlement, recovering what it paid.
Net plaintiff recovery = (BI settlement) − (PIP subrogation) − (attorney's fee) − (other liens).

Worked Example #1 — Florida Crash With Bodily Injury Claim

Facts: Plaintiff has $10,000 Florida PIP. After accident, EMC determination made within 14 days, $40,000 medical bills, $5,000 lost wages. Bodily injury claim against at-fault driver settles for $75,000.

PIP pays: 80% × $10,000 medical = $8,000; lost wages 60% capped within remaining $2,000.
Health insurance covers remainder of medical.
BI settlement: $75,000.
Attorney's fee (33.33%): $25,000.
PIP subrogation: $10,000 (PIP paid).
Health insurance subrogation: $20,000.
Hospital lien: $4,000.
Net to plaintiff: $16,000.

Worked Example #2 — Michigan Catastrophic Injury

Facts: Driver chose $500,000 PIP. Spinal cord injury, $1.2 million medical, $200,000 lost wages over 24 months. Severely disabled.

PIP pays up to $500,000 (medical + wages within limit).
Excess medical: $700,000 lacks no-fault coverage post-reform.
Plaintiff sues at-fault driver for serious impairment; obtains bodily injury settlement of $400,000.
Plaintiff sues at-fault driver in excess of state limits / pursues underinsured motorist coverage for additional recovery.
Net economic recovery substantially less than pre-reform unlimited PIP scenario.

FAQ

What is PIP insurance?

Personal Injury Protection (PIP) is an auto insurance coverage that pays medical expenses, lost wages, and certain other costs after a motor vehicle accident, regardless of fault. PIP is required or available in 21 states, primarily 'no-fault' jurisdictions. It pays first-dollar before any bodily injury claim against an at-fault driver.

Which states require PIP coverage?

Twelve states require PIP: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah. Several others (Delaware, Maryland, DC) require limited no-fault coverage by different name. The rest of the country uses traditional fault-based auto liability.

What is the difference between no-fault and at-fault states?

In no-fault states, your own PIP coverage pays your medical bills and lost wages regardless of who caused the accident, up to your policy limit. You can only sue the at-fault driver for damages that exceed a 'tort threshold' (monetary or verbal). In at-fault states, the at-fault driver's insurance pays your damages through a bodily injury claim — no PIP layer.

What is a tort threshold?

A tort threshold is the minimum injury severity that allows a person in a no-fault state to bring a lawsuit against an at-fault driver for non-economic damages. Verbal thresholds (NJ, NY, FL) require permanent injury, scarring, fracture, or significant loss of function. Monetary thresholds (KS, MA, MN) require minimum medical bills (e.g., $2,000 in MA, $4,000 in KS).

What does PIP cover?

PIP typically covers reasonable and necessary medical expenses, 60-80% of lost wages, essential services (housekeeping, child care), and funeral costs. Coverage limits vary by state — Michigan formerly required unlimited lifetime medical (changed in 2019 reform); Florida caps at $10,000 with a 14-day reporting rule.

What is the Michigan PIP reform of 2019?

PA 21 of 2019 ended Michigan's unique unlimited lifetime PIP medical requirement. Effective July 1, 2020, drivers can choose from $50,000 (Medicaid-eligible) to unlimited limits. The reform also created a fee schedule for PIP medical providers and altered the catastrophic claims (MCCA) assessment. Reform reduced PIP premiums but introduced gaps for severely injured drivers.

Can I receive PIP and sue the at-fault driver?

Yes, but with limits. In no-fault states you collect PIP first; you can still sue the at-fault driver for damages exceeding the tort threshold (typically non-economic damages like pain and suffering, and economic damages over the PIP limit). PIP paid is typically subrogated — your PIP insurer takes back from the BI settlement what it paid.

Does PIP cover passengers and pedestrians?

Generally yes for passengers in the insured vehicle and for the named insured and household members if they are pedestrians or bicyclists struck by a motor vehicle. Specific coverage varies by state and policy — Florida PIP covers the insured and household relatives regardless of vehicle; New York No-Fault covers passengers in the insured vehicle.