# Personal injury protection (PIP)

> Personal injury protection (PIP) defined: no-fault coverage for medical bills, lost wages and other costs after a crash, and how it differs from MedPay.

Canonical page: https://statecover-guide.com/glossary/personal-injury-protection/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Personal injury protection (PIP) is car insurance that pays injury-related costs for you and your passengers after a crash, no matter who caused it. It is the core coverage in no-fault states.

## How it works

The NAIC describes PIP as coverage available in states with no-fault or other auto reparation laws, paying for injuries to the insured and the insured's passengers. You claim from your own insurer instead of waiting for a fault decision.

What PIP pays depends heavily on the state. In states with the broadest benefits, the Insurance Information Institute says it can include:

- medical and hospital bills,
- lost wages,
- the cost of hiring someone to do essential tasks an injured person cannot do,
- funeral costs.

States set different dollar limits for each type of benefit. In true no-fault states PIP is mandatory. In add-on states, first-party benefits like PIP may be optional and can be lower.

## PIP vs MedPay

Medical payments coverage (MedPay) pays medical bills only. PIP is broader because it can also replace lost income and pay for services. In no-fault states, PIP is also tied to limits on lawsuits: you can sue the at-fault driver for pain and suffering only if your injury passes the state's tort threshold.

## Related terms

- [No-fault insurance](https://statecover-guide.com/glossary/no-fault-insurance/)
- [Medical payments coverage](https://statecover-guide.com/glossary/medical-payments-coverage/)
- [Tort threshold](https://statecover-guide.com/glossary/tort-threshold/)
- [Add-on state](https://statecover-guide.com/glossary/add-on-state/)
- Guide: [Personal injury protection (PIP)](https://statecover-guide.com/coverage/personal-injury-protection/)

## Sources

- [NAIC, Glossary of insurance terms](https://content.naic.org/glossary-insurance-terms) — definition of personal injury protection
- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance) — PIP benefits, mandatory and add-on states, tort thresholds