PIP insurance policies generally cover the following services:

Note that PIP coverage doesn’t take care of damages that other drivers cause to your vehicle. In that case, the other driver’s property damage liability insurance policy will typically take effect.

PIP isn’t required in every state, and it’s not even an option in many. Also, drivers can’t carry PIP insurance and medical payments coverage (MedPay) at the same time.

Bodily injury liability insurance is required in nearly every state, and it covers damages faced by others after you cause an accident. In no-fault states where each person’s damage is covered by their insurance provider, it’s commonly known as “residual liability car insurance.”

Drivers typically use their own PIP insurance to cover medical expenses after an accident, regardless of who was the at-fault driver. Bodily injury liability insurance only applies in the most serious instances, when drivers may still face lawsuits.

If your vehicle is damaged by another driver in a no-fault state, the other motorist’s insurance provider will still be required to cover repair costs. That’s because PIP insurance covers medical bills, lost wages and funeral expenses while property damage liability insurance covers vehicle-related charges.

Personal injury protection insurance and MedPay are pretty similar, which is why policyholders can’t purchase both types of insurance on the same policy.

Below, we’ll run through a few differences between PIP insurance and MedPay:

In certain states, drivers get to choose between PIP insurance and MedPay. Carefully consider which type of medical coverage you’d prefer on your car insurance policy before selecting one, as each of these options has its pros and cons.