How much pip coverage should i get?

Personal Injury Protection (PIP) is a type of auto insurance coverage that pays for medical expenses, lost wages, and other costs after a car accident—regardless of who is at fault. Deciding how much PIP coverage to carry involves more than meeting your state’s minimum requirement; it’s about aligning your protection with your personal risk, health insurance, income, and lifestyle.

🟩 Quick Definition 

PIP coverage pays medical expenses, lost wages and additional support costs after an accident regardless of fault; the amount you need depends on your health insurance, income loss risk and state minimums.

How to Determine the Right Level of PIP Coverage

1. Check Your State’s Minimum Requirement

Each state has its own rules for PIP: some require a minimum amount, others offer it as optional. Start by knowing the mandatory minimum in your state.

2. Review Your Health Insurance and Accident Risk

• If you have comprehensive health insurance with low deductible and good coverage, you may be comfortable with near-minimum PIP limits.

• If your health plan has a high deductible or limited coverage for accident-related medical treatment, you’ll want higher PIP coverage.

• Consider how much you could lose if you’re injured: lost income, rehab, household services, transportation.

3. Consider Your Income and Financial Responsibilities

If you rely on your income, or if you’re the primary earner, higher PIP limits help protect you if you’re injured and cannot work. Also consider dependent-related responsibilities and expenses that continue even when you’re incapacitated.

4. Estimate Medical & Wage-Loss Costs After an Accident

Think of a worst-reasonable scenario: hospitalisation, surgery, rehab, household services you can’t perform. Add your health insurance deductible + potential lost income + other support costs. Use this to guide your PIP limit.

5. Choose a Coverage Limit and Deductible You’re Comfortable With

• If your state’s minimum is very low and you’ve got minimal health coverage, consider significantly higher PIP limits.

• If your health insurance is strong, you might choose just above the minimum and allocate budget elsewhere (UM/UIM, better liability).

• Balance premium costs with coverage value—higher limits cost more but protect much better.

Rough Benchmark Guidelines

• If you live in a state where PIP is optional and you have good health insurance + stable income, choosing a moderate PIP limit (just above minimum) might be acceptable.

• If you have high medical-cost risk (e.g., low health coverage, manual job) or high income dependency, aim for $50,000–$100,000+ in PIP or the highest limit your state allows.

• Keep in mind: some states’ minimums are very low (a few thousand dollars). Those minimums may leave you exposed if serious injury occurs.

FAQs

Q1. If I have good health insurance, do I need high PIP coverage?
Not always. Good health insurance reduces the need for very high PIP limits. But remember: health insurance may not cover lost wages, caregiver services or household help after an accident—things PIP can cover.

Q2. Can I just stick with the state minimum PIP?
You could, but you may risk significant out-of-pocket costs if medical bills or wage loss exceed that minimum. Choosing higher coverage offers greater protection.

Q3. How much extra does higher PIP cost?
Usually only a modest increase in premium for substantially more coverage, especially compared to potential costs you could face after a serious accident.

Q4. If I retire or don’t work, does lost-wage benefit matter?
Possibly less—but medical coverage, caregiver services or household help could still be relevant. Even if wage loss isn’t a factor, higher medical cost protection may still make sense.

Q5. When should I review my PIP coverage amount?
Annually or when major changes happen: you change jobs, income changes, health insurance changes, you move to a new state or you have higher exposure to risk (commute longer, drive more frequently).

Final Thoughts

Selecting the right PIP coverage is a balance: your state’s minimum gives you legal compliance, but your real-world risk—health insurance gaps, income dependency, likely medical cost—should drive the limit. For many people, a moderate increase above minimum may make sense; for others with higher risk, opting for the maximum allowable PIP limit is a sound investment. Reviewing your coverage annually keeps you aligned with your changing risk profile.