What is PIP Coverage?

PIP coverage stands for Personal Injury Protection, a type of auto insurance that pays for your medical expenses, lost wages, and other costs after a car accident, regardless of who caused the crash. This “no-fault” coverage protects you and your passengers by providing immediate financial help without waiting to determine fault. It covers everything from hospital bills and physical therapy to childcare and funeral expenses if needed.

Understanding PIP coverage becomes especially important if you’ve been injured in an accident, as it can provide crucial financial support during your recovery.

However, PIP isn’t available in every state, and the rules vary significantly depending on where you live and drive.

This article from our personal injury resources explains exactly how PIP works, what it covers and excludes, how it differs from other insurance types, and what options Nevada drivers have since traditional PIP isn’t offered here.

What Is Personal Injury Protection Insurance?

Personal injury protection (PIP) is auto insurance that pays for your medical bills and other costs after a car accident, no matter who caused the crash. This means your own insurance company covers your expenses, whether you were at fault or completely innocent.

PIP is also called “no-fault insurance” because it eliminates the need to prove who caused the accident before you can get help. It’s considered “first-party coverage,” meaning it directly protects you and your passengers through your own policy, unlike liability insurance, which only covers other people when you’re at fault.

What Does PIP Insurance Cover?

PIP coverage pays for four main types of expenses that occur after you’re injured in a car accident. These benefits start immediately, so you don’t have to wait months for fault determination or legal settlements.

• Medical expenses: Hospital bills, surgeries, doctor visits, physical therapy, prescriptions, and medical equipment
• Lost wages: PIP may help replace a portion of your income if injuries prevent you from working
• Essential services: Childcare, house cleaning, or other necessary tasks you can’t perform while recovering
• Funeral expenses: Burial or cremation costs if someone dies from accident injuries

Medical Expenses Under PIP

PIP covers all reasonable and necessary medical treatment following your car accident. This includes emergency room visits, ambulance rides, diagnostic tests like X-rays and MRIs, and ongoing care for orthopedic injuries such as physical therapy or chiropractic treatment.

The best thing about it is how fast it is. PIP pays these bills right away, without waiting to find out who was at fault. You can get the medical care you need right away instead of having to wait for insurance companies to process your claims.

Lost Wages Under PIP

If your injuries prevent you from working, PIP replaces a percentage of your lost income, typically between 60% and 80%. This benefit has weekly or monthly limits that vary by state and policy.

Self-employed individuals can also collect lost wages under PIP if they can prove their business income dropped due to injuries from accidents. You’ll need to provide documentation like tax returns or profit and loss statements.

Replacement Services and Childcare

“Replacement services” means paying others to do essential household tasks you usually handle but can’t perform due to your injuries. This might include lawn care, grocery shopping, or driving your children to school.

The keyword is “essential.” PIP won’t pay for extra services or comforts that you don’t need. During your recovery, these services are necessary for your family to get by.

Funeral Costs and Survivor’s Benefits

When a car accident results in death, PIP provides a benefit to help cover funeral and burial expenses. The exact limit for funeral and burial expenses under PIP varies based on the terms of your particular policy.

Some PIP policies also include survivor benefits for the spouse or children of someone killed in an accident. These benefits help replace lost financial support during a difficult time.

What Is Not Covered by PIP

While PIP provides broad coverage for your immediate needs, it has important limitations that you should understand. Knowing what’s excluded helps explain why you need other types of insurance too.

PIP does not cover:

• Damage to your vehicle or other property
• Pain and suffering compensation
• Injuries to other drivers or their passengers
• Accidents that happen while you’re committing a crime
• Injuries from racing, DUI accidents, or intentionally causing harm

Which States Require PIP?

PIP requirements differ dramatically across the United States because each state sets its own auto insurance laws. Some states make PIP mandatory for all drivers, while others offer it as optional coverage you can choose to buy or skip.

No Fault States With Mandatory PIP

No-fault states require all drivers to carry PIP as part of their basic auto insurance policy. In these states, your own PIP coverage is the first place you turn for help after an accident, which speeds up the claims process.

The mandatory PIP states are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah. Minimum PIP coverage amounts vary by state and are set according to each state’s insurance laws.

At Fault States That Require or Offer PIP

Some at-fault states still require drivers to carry PIP coverage even though they operate under a fault-based system. Arkansas, Delaware, and Maryland fall into this category.

Other at-fault states like Texas, Washington, New Hampshire, and South Dakota make PIP available as optional coverage. You can buy it if you want extra protection, but the state doesn’t force you to have it.

Is PIP Required in Nevada?

Nevada does not require or even offer traditional PIP coverage to drivers. Nevada is an at-fault state, which means the driver who causes an accident must pay for the damages they create.

Instead of PIP, most Nevada drivers rely on Medical Payments (MedPay) coverage and Uninsured/Underinsured Motorist (UM/UIM) coverage for protection. These alternatives work differently from PIP and have different rules about reimbursement.

Do Nevada Policies Use MedPay Instead of PIP

Yes, Nevada insurance companies offer Medical Payments (MedPay) coverage as the closest alternative to PIP. While both types of coverage pay for medical bills after an accident, they have critical differences you need to understand.

At Ladah Injury & Car Accident Lawyers Las Vegas, we offer free policy reviews to help you understand exactly what coverage you have. Our team is always ready to answer your questions and explain your options.

PIP vs MedPay

The most significant difference between PIP and MedPay is what happens when you receive a settlement or court award. With MedPay, you must pay back the benefits from any money you collect, but with PIP, you keep both the benefits and your settlement.

Coverage Type	What It Covers	Covers Lost Wages	Must Repay From Settlement	Available in Nevada
PIP	Medical bills, wages, services	Yes	No	No
MedPay	Medical bills only	No	Yes	Yes

This difference can cost you thousands of dollars if you don’t understand it before filing claims or accepting settlements.

PIP vs Bodily Injury Liability Coverage

Many people confuse PIP with bodily injury liability coverage, but they protect completely different people. Understanding this difference is crucial for making sure you have adequate protection.

• PIP covers you: Pays for your injuries and your passengers’ injuries, regardless of who caused the accident.
• Bodily injury liability covers others: Pays for other people’s injuries when you are at fault for the accident.

You need both types of coverage because they serve different purposes and protect other people.

How Does PIP Differ From Full Coverage?

“Full coverage” is not a specific type of insurance policy – it’s just a common phrase people use to describe having several types of coverage bundled together. Most people mean they have liability, comprehensive, and collision coverage when they say “full coverage.”

This bundle may or may not include PIP or MedPay. You should always check your policy declarations page to see exactly what protection you actually have, especially in complex situations like multi-vehicle crashes where multiple insurance policies may be involved. 

Don’t assume “full coverage” means you’re fully protected in every situation.

How Much PIP Coverage Should You Get?

The right amount of PIP coverage depends on your existing health insurance and your family’s financial situation. You need to balance the cost of higher coverage against the protection it provides, especially if you’re at higher risk for serious injuries like those from motorcycle accidents.

With Good Health Insurance

If you have comprehensive health insurance with low deductibles and copays, you might choose your state’s minimum PIP limits to keep your auto insurance premiums lower. However, remember that PIP provides benefits health insurance doesn’t, like lost wages and essential services.

PIP also pays immediately without requiring you to meet deductibles or pay copays first, which can be valuable even with good health coverage.

With High Deductibles or No Health Insurance

If you have a high-deductible health plan or no health insurance at all, you should buy the maximum PIP coverage available in your state. PIP becomes your primary source of medical coverage after an accident.

Without adequate coverage, you could face thousands of dollars in out-of-pocket medical expenses from catastrophic injuries that could devastate your finances during an already difficult time.

How PIP Works With Health Insurance

When you have both PIP and health insurance, they work together in a specific order called “coordination of benefits.” PIP typically acts as the primary payer for accident-related medical bills, which means it pays first.

This arrangement benefits you because PIP covers your health insurance deductible and copays until your PIP limit is exhausted. Then your health insurance takes over for any remaining covered expenses.

PIP and UM UIM Coverage

PIP coverage has maximum limits, often $10,000 or less depending on your state and policy. When your medical bills exceed these limits or you’re hit by uninsured or underinsured drivers, you need additional protection to avoid financial disaster.

Uninsured/Underinsured Motorist (UM/UIM) coverage steps in when the at-fault driver has inadequate insurance to pay for your damages. In Nevada, where PIP isn’t available, having strong UM/UIM coverage becomes even more critical for your financial protection.

How To File a PIP or MedPay Claim

Filing your claim correctly from the start protects your right to benefits and speeds up the payment process. Making mistakes early can delay or even jeopardize your claim.

Step 1: Report the Crash Promptly

Notify your insurance company as soon as possible after your accident, even if you aren’t sure whether you’ve been injured. Get a claim number and write down your adjuster’s name and direct phone number.

Don’t wait to see how you feel or whether the other driver’s insurance will pay. Delaying your report can give your insurer grounds to deny your claim entirely.

Step 2: Submit Medical Bills Correctly

Send all itemized medical bills and treatment records directly to your PIP or MedPay adjuster as soon as you receive them. Keep copies of everything you submit, and send bills promptly rather than waiting until your treatment ends.

Make sure your medical providers know you were in a car accident so they bill your auto insurance correctly. Some providers automatically bill health insurance first, which can complicate your claims.

Step 3: Avoid Recorded Statements Without Counsel

Your insurance company will likely ask for a recorded statement about your accident and injuries. These statements can be used to limit or deny your benefits, so be extremely careful about what you say.

At Ladah Injury & Car Accident Lawyers in Las Vegas, we handle all insurance communications for our clients so they can focus on recovery. Our team knows exactly what to say and what to avoid to protect your interests.

Step 4: Track Deadlines and Appeals

Insurance companies must respond to PIP and MedPay claims within timeframes set by state law. Document every phone call, email, and letter in case you need to file a complaint or appeal a denial.

If your benefits are unfairly denied, you have the right to appeal the decision. Don’t accept a denial without fighting back, especially if you followed all the rules.

Injured in a Las Vegas Accident?

If you’ve been hurt in a car accident in Las Vegas, you need experienced legal help to protect your rights and secure the compensation you deserve.

We know how hard it is for you to deal with the physical, emotional, and financial problems that come up after an accident at Ladah Injury & Car Accident Lawyers in Las Vegas. Don’t let insurance companies downplay your claim or hold up your benefits. Our dedicated team will fight hard for you. Take action now to secure that all your medical bills, lost wages, and other related costs are comprehensively covered without adding to your stress.

Contact us today for a free consultation and take the first step toward your recovery and peace of mind.

Frequently Asked Questions

Is PIP worth having if I already have good health insurance?

Yes, PIP provides benefits that health insurance doesn’t cover, such as lost wages and essential household services, and it also pays medical bills without deductibles or copays.

Will filing a PIP or MedPay claim increase my insurance rates?

No, using PIP or MedPay benefits typically won’t raise your premiums because these are no-fault coverages you’ve already paid for through your policy.

Can passengers in my car use their own PIP coverage instead of mine?

In most states, passengers can choose to file under their own PIP policy or yours, but some states require them to use their own coverage first if available.

Do insurance companies get repaid from my personal injury settlement?

With PIP, insurers cannot seek reimbursement from your settlement, but with Nevada’s MedPay coverage, you must repay benefits from any settlement you receive.

What should Nevada drivers buy since PIP isn’t available here?

Nevada drivers should carry adequate MedPay and Uninsured/Underinsured Motorist coverage, and consider higher liability limits since traditional PIP protection isn’t offered.

How quickly must I report an accident to preserve my PIP benefits?

You should notify your insurance company about an accident as soon as possible, since prompt reporting helps protect your rights and ensures you meet any deadlines set by your policy or state law.

Securing Your Recovery: Why Personal Injury Protection (PIP) is Essential

Personal Injury Protection (PIP) coverage offers vital financial support by covering medical costs, lost wages, and essential services after an auto accident, regardless of fault.

While not available in every state, understanding how PIP works and its differences from other coverages like MedPay and bodily injury liability can help you make informed decisions about your auto insurance.

Whether you live in a no-fault state that requires PIP or an at-fault state where it’s optional, purchasing adequate coverage limits ensures you and your family members are protected against the unexpected costs of injuries sustained in an automobile accident.

Always review your policy carefully and consider consulting with an insurance expert to choose the right coverage for your needs.