PIP Insurance Requirements by State (2026) | No-Fault Guide

PIP Is Mandatory in 12 States — and the Minimums Vary by a Factor of 16

Personal injury protection (PIP) insurance pays for medical expenses, lost wages, and related costs for the policyholder and passengers after an auto accident — regardless of who was at fault. Twelve U.S. states require drivers to carry PIP as part of their no-fault auto insurance systems. Three additional states — Kentucky, New Jersey, and Pennsylvania — operate as "choice no-fault" states where drivers can opt into the no-fault system. And over a dozen more states make PIP available as an optional add-on without mandating it.

The variation in required minimums is wide: Utah mandates $3,000 in PIP medical coverage per person, while New York requires $50,000 and Michigan historically allowed unlimited lifetime medical benefits (a structure Michigan reformed in 2020 to a tiered opt-out system). Understanding which states mandate PIP, what the minimum benefit amounts are, and what PIP does and does not cover is essential for any driver who lives in or travels through no-fault states.

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Quick Answer: PIP Requirements at a Glance

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What PIP Covers — and What It Does Not

PIP coverage responds to a specific set of costs arising from an auto accident. The exact scope varies by state, but the core benefits are:

Typically covered by PIP:

• Emergency room and hospital bills for the policyholder and passengers
• Surgery, physical therapy, and rehabilitation costs
• Lost wages if injuries prevent the policyholder from working (up to a percentage or dollar cap)
• Funeral and burial expenses in fatal accidents (death benefit)
• Essential services — replacement services for household tasks the injured person cannot perform (lawn care, childcare, cleaning) — in some states

Typically not covered by PIP:

• Property damage to the vehicle or other vehicles — covered by collision and property damage liability
• Injuries to the other driver in an at-fault accident — covered by bodily injury liability
• Pain and suffering damages — PIP is economic loss only; tort claims for non-economic damages may be restricted in no-fault states
• Medical expenses above the PIP limit — the policyholder's health insurance takes over, subject to its own deductibles and copays
• Injuries sustained in non-vehicle accidents — PIP responds specifically to auto accidents

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Mandatory PIP States: Minimums by State

Florida — $10,000 PIP

Florida requires $10,000 in PIP medical coverage per person. Florida's PIP pays 80% of medical expenses and 60% of lost wages, up to the $10,000 limit. Florida's no-fault system restricts the ability to sue another driver for non-economic damages unless injuries meet the "serious injury" threshold — permanent injury, significant and permanent scarring or disfigurement, or death.

Florida's $10,000 minimum is widely regarded as inadequate for serious accident injuries. Drivers in Florida routinely purchase higher PIP limits or supplement with health insurance and medical payments (MedPay) coverage. PIP applies to the policyholder, household residents, and passengers without other coverage.

Michigan — Tiered PIP (Reformed 2020)

Michigan reformed its auto no-fault system in 2020, replacing the prior mandatory unlimited lifetime medical benefit with a tiered opt-out structure. Drivers in Michigan now choose from:

• Unlimited PIP medical: Unlimited lifetime medical coverage — the prior default
• $500,000 PIP medical
• $250,000 PIP medical
• $250,000 PIP medical with exclusions — for those with qualifying health insurance
• $50,000 PIP medical — for Medicaid enrollees
• PIP medical opt-out — for those with qualifying Medicare coverage

Drivers with no health insurance who opt down to lower PIP tiers face significant personal financial exposure in a serious accident. The Michigan Department of Insurance and Financial Services tracks the distribution of tier selections.

New York — $50,000 PIP (Basic No-Fault)

New York's Basic No-Fault coverage provides $50,000 in PIP benefits per person per accident. New York's no-fault covers: all reasonable and necessary medical expenses; 80% of lost earnings up to $2,000 per month for up to three years; and $25 per day for up to one year for other reasonable and necessary expenses. The $50,000 minimum is among the highest mandatory PIP levels in the country.

New York's no-fault threshold for suing the other driver is a "serious injury" as defined by Insurance Law §5102(d) — bone fracture, significant limitation of use of a body function or system, permanent consequential limitation, significant disfigurement, or death.

New Jersey — $15,000 PIP (Basic Policy) or $250,000 (Standard)

New Jersey operates a choice no-fault system with two policy tiers:

• Basic Policy: $15,000 PIP per person per accident; limited rights to sue for non-economic damages
• Standard Policy: PIP from $15,000 to $250,000 in increments; the policyholder can choose "verbal threshold" (limited sue right) or "tort option" (retained full sue right)

New Jersey drivers on the Standard Policy who select the lawsuit limitation (verbal threshold) pay lower premiums. The minimum PIP under New Jersey's Basic Policy is $15,000 per person.

Pennsylvania — $5,000 PIP (First Party Benefits)

Pennsylvania's choice no-fault system requires at least $5,000 in first-party medical benefits (PIP). Drivers choose between:

• Full Tort: Retains full right to sue for all damages, including non-economic. Higher premium.
• Limited Tort: Restricts the right to sue for non-economic damages except for serious injury. Lower premium.

Pennsylvania's minimum of $5,000 in first-party benefits applies under both tort options.

Hawaii — $10,000 PIP

Hawaii requires $10,000 in personal injury protection per person. Hawaii's no-fault system covers medical expenses and certain other economic losses. Hawaii's tort threshold for suing the other driver: medical expenses exceeding $5,000, or a permanent loss of a body function, permanent disfigurement, fracture, or death.

Kansas — $4,500 Medical + Additional Benefits

Kansas requires a specific multi-part PIP structure:

• Medical: $4,500 per person
• Rehabilitation: $4,500 per person
• Funeral and burial: $2,000 per person
• Lost income: $900 per month for up to one year
• Survivor benefits: $900 per month for one year, $25/day for essential services

Kansas's no-fault restrictions apply — victims cannot sue for non-economic damages unless injuries meet the serious injury threshold.

Kentucky — Choice No-Fault, $10,000 PIP Default

Kentucky is a choice no-fault state. The default PIP minimum is $10,000 per person. Drivers can sign a written rejection of no-fault benefits and retain full tort rights — but they must do so explicitly and in writing. Without a written rejection, the $10,000 PIP default applies.

Massachusetts — $8,000 PIP

Massachusetts requires $8,000 in personal injury protection per person per accident. Massachusetts PIP covers 80% of medical expenses and certain lost wages, up to the $8,000 limit. Massachusetts's compulsory PIP also covers household members and certain pedestrians struck by the insured vehicle.

Minnesota — $40,000 PIP

Minnesota requires $40,000 in PIP per person — among the higher mandatory minimums. The $40,000 is split: $20,000 for medical and $20,000 for non-medical (lost wages, replacement services). Minnesota's no-fault threshold for tort recovery: medical expenses exceeding $4,000, a 60-day disability, permanent injury or disfigurement, or death.

North Dakota — $30,000 PIP

North Dakota requires $30,000 in basic no-fault benefits per person per accident: $30,000 for medical, $150 per week for lost income (for up to 52 weeks), $15 per day for essential services, and $5,000 death benefit. North Dakota's tort threshold: medical expenses exceeding $2,500, permanent injury or significant disfigurement, or death.

Utah — $3,000 PIP

Utah has the lowest mandatory PIP minimum of the mandatory no-fault states: $3,000 per person. Utah's PIP covers 85% of medical expenses and 85% of lost wages, up to the $3,000 limit. Utah drivers can purchase higher PIP limits. Utah's tort threshold: medical expenses exceeding $3,000, death, dismemberment, permanent disability, or permanent impairment.

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PIP Minimums Summary Table

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States Where PIP Is Optional (Add-On States)

Several states allow drivers to purchase PIP voluntarily without requiring it. In these states, PIP supplements the driver's health insurance or covers gaps where the health plan may be slow to respond or requires copays:

• Texas: Optional PIP available; must be offered by the insurer; driver must reject in writing to decline
• Virginia: Medical expense benefits available; optional
• Oregon: PIP available as optional coverage; $15,000 minimum when purchased
• Washington: Optional PIP; $10,000 minimum when purchased
• Maryland: Medical expense benefits optional; $2,500 minimum
• Delaware: PIP available; $15,000 minimum when purchased
• Wisconsin: Medical payments coverage optional
• Arkansas: PIP available; optional
• South Dakota: PIP available; optional

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How No-Fault Restrictions Affect the Right to Sue

The primary trade-off in mandatory no-fault states is reduced litigation in exchange for faster medical benefit payment. Each no-fault state defines a threshold that an injury must meet before the victim can sue the at-fault driver for non-economic damages (pain and suffering):

In states with a "verbal threshold" (like Florida and Michigan), the threshold is described in words — "permanent injury," "significant impairment" — rather than a dollar amount. Verbal thresholds are typically more restrictive than dollar thresholds in practice.

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Drivers Who Move Between No-Fault and At-Fault States

Drivers who relocate from a mandatory PIP state to an at-fault state — or vice versa — should review their coverage immediately. In at-fault states, the at-fault driver's bodily injury liability pays for the other driver's medical expenses. The driver's own medical expenses after an accident depend on their health insurance. PIP is not required and may not be offered.

New residents moving from New York or Michigan to Texas or Georgia, for example, move from a mandatory PIP environment to an at-fault environment where their own medical expenses after a not-at-fault accident depend on the other driver's liability limits — which may be the Texas minimum of $30,000/$60,000.

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How to Comply in Mandatory PIP States

Step 1: Confirm whether your state requires PIP

The 12 mandatory PIP states and 3 choice no-fault states are listed above. If you are registering a vehicle in a mandatory PIP state, PIP at the state minimum must be included on the policy.

Step 2: Determine whether the minimum is adequate for your situation

PIP minimums in several states — particularly Florida ($10,000) and Utah ($3,000) — are widely insufficient for serious injury coverage. Supplement with:

• Higher voluntary PIP limits (most states allow purchase above the minimum)
• Medical payments (MedPay) coverage, available in most states as a supplement
• Health insurance with strong emergency coverage

Step 3: Understand the tort election in choice no-fault states

In Kentucky, New Jersey, and Pennsylvania, the tort election you make at policy purchase affects your right to sue for non-economic damages. Understand the threshold before selecting the limited tort option for premium savings.

Step 4: In Michigan, select your PIP tier carefully

Michigan's reformed tiered system requires an active tier selection at policy purchase. Drivers without health insurance who select a low tier face significant personal financial exposure in a serious accident. Drivers with Medicare may opt out; confirm that the Medicare coverage meets Michigan's opt-out requirements before selecting that option.

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FAQ

What is PIP insurance and how does it differ from health insurance?

Personal injury protection (PIP) is auto insurance coverage that pays for the policyholder's medical expenses and certain other costs after an auto accident, regardless of fault. Unlike health insurance, PIP responds specifically to auto accidents, may cover lost wages and essential services (not just medical expenses), and often pays before health insurance is billed. Health insurance covers a broader range of medical events but may have deductibles, copays, and network restrictions that PIP bypasses.

Is PIP required in my state?

PIP is mandatory in 12 states: Florida, Michigan, New York, New Jersey (default), Pennsylvania (default), Hawaii, Kansas, Kentucky (default), Massachusetts, Minnesota, North Dakota, and Utah. In Kentucky, New Jersey, and Pennsylvania, the no-fault default can be rejected in writing. In all other states, PIP is either optional or not available.

What happens if I don't carry PIP in a mandatory PIP state?

Failure to carry mandatory PIP results in the same penalties as driving without required auto insurance: fines, license suspension, registration suspension, and SR-22 filing requirements in some states. In Florida, not carrying PIP means the vehicle registration is invalid. Insurers in mandatory PIP states cannot issue a compliant auto policy without the required PIP coverage.

Can I sue the other driver even if I have PIP?

In mandatory no-fault states, the right to sue for non-economic damages (pain and suffering) is restricted to injuries that meet a defined threshold — typically permanent injury, significant disfigurement, or death. Economic damages (medical expenses beyond the PIP limit, lost wages beyond the PIP limit) can generally still be recovered through a tort claim even in no-fault states, subject to the threshold rules.

Why is Michigan's PIP system different from other states?

Michigan's no-fault system historically provided unlimited lifetime medical benefits — the most comprehensive in the country — funded through the Michigan Catastrophic Claims Association (MCCA). This made Michigan auto insurance premiums among the highest in the nation. The 2020 reform replaced mandatory unlimited PIP with a tiered opt-out system, allowing drivers to choose lower benefit levels in exchange for premium reduction. The reform reduced premiums but also reduced the automatic catastrophic coverage that the prior system guaranteed.

What is the difference between PIP and MedPay?

Both PIP and MedPay (medical payments coverage) pay for medical expenses after an auto accident regardless of fault. PIP is broader — it covers lost wages, essential services, and in some states, funeral expenses, in addition to medical bills. MedPay covers only medical and funeral expenses. MedPay is available in all states (though not mandatory in most); PIP is required in 12 states and optional in several others. In states where PIP is not offered, MedPay is the closest equivalent for first-party medical coverage.

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Key Takeaways

• PIP is mandatory in 12 states and available as optional coverage in several more — drivers in no-fault states are required to carry it; at-fault state drivers typically rely on health insurance for their own medical costs after an accident.
• Minimum PIP varies from $3,000 (Utah) to $50,000 (New York) — with Michigan now offering a tiered system from $50,000 to unlimited; the right coverage level depends on health insurance backup and personal financial exposure.
• Choice no-fault states — Kentucky, New Jersey, and Pennsylvania — require a written rejection to opt out of the no-fault PIP default; the default applies if no action is taken.
• The tort threshold in mandatory no-fault states restricts the ability to sue for pain and suffering to injuries meeting a statutory definition — understanding the threshold in your state matters when making coverage decisions.
• Michigan's 2020 reform replaced mandatory unlimited PIP with a tiered opt-out system — Michigan drivers must actively select a tier; those without health insurance face significant exposure if they select a low tier.
• Florida's $10,000 minimum is widely considered inadequate for serious accident injuries; supplementing with MedPay or higher voluntary PIP limits is advisable given the state's minimum.

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Sources

• Florida Department of Highway Safety and Motor Vehicles — Personal Injury Protection Requirements
• Michigan Department of Insurance and Financial Services — No-Fault PIP Reform, 2020 Changes
• New York State Department of Financial Services — Basic No-Fault Coverage Requirements, Insurance Law §5101
• Insurance Information Institute (Triple-I) — Personal Injury Protection (PIP) by State

Last verified: 2026-06

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Important Disclaimer

This guide provides general information about insurance requirements based on publicly available sources as of the "Last verified" date above. It is not legal, insurance, or financial advice. Requirements, penalties, and statutes can change; individual circumstances vary. Always confirm current rules with your state's Department of Insurance or DMV, and consult a licensed insurance professional for advice specific to your situation.