Do you need PIP or MedPay coverage?

You need PIP coverage if you live in a no-fault state where it’s legally required — this includes Florida, Michigan, New York, New Jersey, Pennsylvania, Massachusetts, Minnesota, North Dakota, Kansas, Kentucky, Hawaii, Utah, Puerto Rico, and Washington, D.C. MedPay coverage is optional in nearly every state, so you’re never legally required to buy it.

If you live in a state where PIP is optional or unavailable, here’s how to decide:

• Buy PIP if you have a high-deductible health plan, no health insurance, or want coverage for lost wages and household services after an accident.
• Buy MedPay if you have solid health insurance but want cheap backup coverage ($5–$50/year) for medical bills, deductibles, and copays — especially for passengers.
• Buy both if your state allows it and you want the broadest protection. PIP pays first, MedPay fills the gaps.
• Skip both if you have comprehensive health insurance, rarely carry passengers, and live in an at-fault state.

PIP covers medical bills, lost wages, household services, and funeral costs. MedPay only covers medical bills and funeral costs. PIP is broader and more expensive ($50–$200+/year); MedPay is narrower and cheap.

What is PIP coverage?

Personal Injury Protection (PIP) pays for medical expenses, lost wages, and certain other costs after a car accident — regardless of who caused the crash. Depending on your state and policy, PIP can also cover:

• Rehabilitation and ongoing care
• Childcare or household services if you can’t perform them while recovering
• Funeral expenses
• A portion of lost income

PIP is required in no-fault states and a handful of others. Coverage limits typically range from $2,500 to $250,000 or more.

What is MedPay coverage?

Medical Payments coverage (MedPay) pays for medical bills after a car accident, no matter who was at fault. Unlike PIP, MedPay only covers medical and funeral expenses — not lost wages or household services.

MedPay is optional in most states and usually offered in smaller limits, commonly $1,000 to $25,000.

What’s the difference between PIP and MedPay?

PIP and MedPay both pay medical bills after a car accident, regardless of fault, but PIP covers significantly more. PIP includes lost wages, rehabilitation, and household services, while MedPay is limited to medical and funeral expenses. PIP is also required in about a dozen states, while MedPay is almost always optional. 

So, PIP is broader and often mandatory. MedPay is narrower and almost always optional. Here’s how they compare side by side.

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Do you need PIP coverage?

You need PIP if you live in a no-fault state. States that require PIP include Florida, Michigan, New Jersey, New York, Pennsylvania, Massachusetts, Minnesota, North Dakota, Kansas, Kentucky, Hawaii, and Utah, along with Puerto Rico and Washington, D.C. Requirements and minimum limits vary by state.

Even where PIP is optional, you may want it if:

• You have a high-deductible health insurance plan
• You don’t have health insurance
• You frequently drive passengers who may not be insured
• You want coverage for lost wages after an accident

Do you need MedPay coverage?

MedPay is worth considering if:

• You have health insurance with high copays or deductibles
• You want a simple way to cover passengers’ medical bills
• You live in an at-fault state where PIP isn’t offered
• You want backup coverage that pays quickly without going through health insurance claims

You probably don’t need MedPay if you already have PIP with high limits and solid health insurance — there’s significant overlap.

Here’s a chart to help you decide:

Where are PIP and MedPay required?

PIP is required in 15 states, optional in six states plus Washington, D.C., and not available in the remaining 28 states. MedPay is only required in two states — Maine and New Hampshire — and optional almost everywhere else.

Here’s how the requirements break down:

• PIP required: Mandatory in no-fault states, where drivers use their own coverage for medical bills regardless of who caused the accident.
• PIP optional: Available as an add-on in a handful of states, but not required to drive legally.
• PIP unavailable: Not sold at all in roughly 28 states, which typically follow an at-fault system.
• MedPay required: Only in Maine and New Hampshire.
• MedPay optional: Available as an add-on in most other states.

Keep in mind that car insurance itself is mandatory in every state except New Hampshire, and most states set minimum coverage requirements drivers must meet to legally operate a vehicle. PIP and MedPay rules sit on top of those baseline requirements.

Why New Hampshire is different

New Hampshire is the only state that doesn’t legally require drivers to carry car insurance. Drivers there still have to prove they can financially cover damages they cause in an accident, which is why many choose to carry auto insurance anyway — and why MedPay is one of the few coverages the state does mandate when a policy is purchased.

Understanding PIP and MedPay limits

The limits on PIP and MedPay are not the same for every state. While some states cap coverage on a per-person basis, others set limits based on the overall accident. On top of that, specific PIP benefits like medical expenses, lost wages and funeral costs may each have their own separate limits within a single policy.

Florida

Florida requires drivers to carry $10,000 in PIP coverage per person, with that limit shared across all covered benefits.

New York

New York requires at least $50,000 in PIP coverage per person, which includes:

• Medical expenses
• 80% of lost wages up to monthly limits
• Reimbursement for certain daily expenses
• A death benefit

Michigan

Michigan gives drivers the flexibility to choose their own PIP medical coverage limit, starting at $50,000 and going up to unlimited lifetime medical coverage.

Washington

Washington takes a different approach by separating PIP benefits into individual coverage categories:

If your coverage limits are exhausted, there are a few ways your remaining medical bills could still be taken care of:

• You pay the remaining amount out of pocket
• You file a claim or lawsuit against the at-fault driver
• Your health insurance steps in to cover what PIP leaves off

If the accident was your fault and you do not have health insurance or your plan does not cover auto accident injuries, you could end up personally responsible for any remaining medical expenses once your MedPay or PIP benefits run out. In that case, having both MedPay and PIP with limits of at least $5,000 can offer a meaningful safety net.

How do PIP and MedPay differ from bodily injury liability?

PIP and MedPay cover you and your passengers after an accident, regardless of fault. Bodily injury liability covers other people you injure in an accident you caused — it pays nothing toward your own medical bills.

This distinction matters because drivers often assume their liability coverage will take care of them after a crash. It won’t. Liability insurance is required in nearly every state, but it’s designed to protect other people from you, not the other way around. Without PIP, MedPay, or health insurance, you’re on the hook for your own medical bills even when someone else hits you and their liability coverage falls short.

Here’s how the two types of coverage compare:

What to remember is that liability protects your wallet from lawsuits. PIP and MedPay protect your body — and your passengers’ — from the bills that follow a crash.

How are PIP and MedPay different from health insurance?

PIP and MedPay are car insurance coverages that pay for medical bills after a car accident, while health insurance covers medical care for any reason — illness, injury, or routine care. The key differences:

• PIP and MedPay pay first. After a car accident, your auto medical coverage typically pays before your health insurance, and can offset your health plan’s deductibles and copays.
• PIP covers more than medical bills. It can also pay for lost wages, household services while you recover, and funeral expenses — none of which health insurance covers.
• No deductibles or copays. PIP and MedPay generally pay from the first dollar, while health insurance usually requires you to meet a deductible first.
• Coverage applies to passengers. Your auto medical coverage protects everyone in your car, even if they’re not on your health plan.

Do you need PIP or MedPay if you already have health insurance?

It depends on your health plan. PIP or MedPay is usually worth carrying if:

• You have a high-deductible health plan
• Your health insurance has limited coverage for auto accident injuries
• You regularly drive passengers who may not be well insured
• You want coverage for lost wages or household help during recovery

You may be able to skip them if you have comprehensive, low-deductible health insurance and rarely carry passengers — though this only applies in states where PIP and MedPay are optional.