Pennsylvania PIP insurance
Key takeaways
- Pennsylvania is a “choice no-fault” state that requires drivers to carry first-party benefits coverage, otherwise known as personal injury protection (PIP).
- Pennsylvania drivers are legally required to carry a minimum of $5,000 of medical benefits coverage to comply with the state’s minimum car insurance coverage laws.
- Adding optional PIP coverage in Pennsylvania can provide payments towards medical-related expenses — including lost wages, disability and rehab costs — and death benefits.
- PIP coverage does not pay for any damage to a vehicle or property.
In Pennsylvania, lawmakers and insurers refer to personal injury protection (PIP) as either first-party benefits coverage or medical expense benefits coverage. You must carry at least $5,000 in PIP coverage to satisfy Pennsylvania’s legal requirements as a “choice no-fault” state. PIP coverage can provide financial compensation for your own medical payments, lost wages and funeral expenses stemming from a car accident, regardless of fault. Bankrate’s insurance editorial team breaks down everything you need to know about PIP coverage in Pennsylvania, helping you understand how much coverage you need and what it protects.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
What is PIP insurance?
Depending on your coverage selection, PIP coverage in Pennsylvania can help cover medical payments, lost wages and funeral expenses should you be involved in an accident. Since Pennsylvania is a no-fault state, you can claim these benefits regardless of who caused the accident. PIP also provides coverage to your passengers and resident family members injured in someone else’s vehicle or as a pedestrian.
Pennsylvania policyholders won’t see the term “personal injury protection” in their policy declarations page. Instead, they will see the terms first-party benefits or medical expense benefits to describe what is traditionally called PIP coverage.
How does Pennsylvania PIP work?
Pennsylvania PIP statutes require insurers to offer medical expense benefits insurance up to at least $100,000. However, policyholders can choose the minimum $5,000 option by completing a coverage selection form. If you carry the minimum requirement and are involved in an accident, you can only claim up to $5,000 for medical payments on your policy. The $5,000 minimum of medical payments does not include lost wages coverage.
Medical expense benefits coverage may be available at a limit above $100,000 depending on your insurance provider. In addition, you could add one or a combination of the following optional first-party benefits in varying limits:
- Income loss benefit: This option will help cover lost salary if you are unable to work following an approved claim. In most cases, you will be covered for 80 percent of your gross income, up to the limits of your policy.
- Funeral expense benefit: Provides payment toward reasonable and necessary expenses for funeral or cremation costs.
- Accidental death benefit: With this benefit, if a person who is involved in an accident dies within 24 months of the accident due to injuries sustained, their beneficiary will receive a payment.
- Extraordinary medical benefits coverage limits option: This option provides more robust coverage, by offering an amount above the maximum that is usually paid out in a claim, which is $100,000. Typically this coverage has a lifetime limit of $1 million.
Is PIP required in Pennsylvania?
Pennsylvania requires some form of medical expense benefits coverage for you and your passengers up to $5,000. This pays toward medical bills for you, your passengers or any others covered by your policy — regardless of who is at fault for the accident — up to the $5,000 limit. Many people consider Pennsylvania a PIP insurance state due to this requirement.
Pennsylvania requires other minimum coverage types for drivers, in addition to the medical expense benefits. This includes:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
Whether carrying PIP coverage or the liability minimums, it is important to remember only purchasing the minimum coverage is more likely to result in a higher risk of out-of-pocket expenses. For instance, if you purchase the $5,000 in medical expense benefits coverage, this may not be enough to cover expenses for multiple injuries for you and your passengers. Additionally, purchasing the minimum would not provide any additional financial protection if you are out of work due to the injuries sustained.
While drivers looking for cheap Pennsylvania car insurance may want to select limited tort since it tends to reduce the premium drastically, it may be beneficial to speak with a licensed agent before doing so.
How much does PIP cost in Pennsylvania?
The 2024 average cost of car insurance in Pennsylvania is $514 annually for minimum coverage and $2,450 per year for full coverage car insurance. Like any other coverage you select for an auto insurance policy, the amount PIP costs is dependent on how much you purchase. While $5,000 of medical payments is the minimum required, you can increase this amount.
Auto insurance rates, including the coverage options, are determined by a number of factors. These factors include your age, ZIP code, vehicle, driving history and several other personal factors. If you are interested in adding higher PIP coverage amounts to your policy, you can work with a licensed insurance agent to understand the options and rates.
Frequently asked questions
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