In New York, Personal Injury Protection (PIP), part of the mandatory no-fault system, pays your medical bills, lost wages (up to $2,000/mo), and essential services (like housekeeping, $25/day) after a car crash, regardless of who caused it, up to a $50,000 limit per person, ensuring quick access to care for drivers, passengers, and pedestrians without lengthy fault disputes, but doesn’t cover property damage or pain & suffering for minor injuries.
If you’ve ever been involved in a car accident—or even just checked your auto insurance documents—you’ve probably seen the term PIP. But what is PIP, and why does it matter so much for New Yorkers who are injured in crashes?
PIP stands for Personal Injury Protection, and it’s a mandatory part of every auto insurance policy in New York. It’s also known as “no-fault insurance” because it pays for certain losses regardless of who caused the accident.
Here’s what you need to know.
PIP Insurance: The Basics
PIP insurance is designed to help injured people get medical treatment and financial support quickly—without having to wait for a lawsuit or dispute over who was at fault. New York requires every registered vehicle to carry at least $50,000 in PIP coverage.
PIP applies to:
- Drivers
- Passengers
- Pedestrians hit by a motor vehicle
- Cyclists hit by a motor vehicle
This means if you’re injured in a crash, PIP is usually the first line of coverage for your medical bills.
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What Does PIP Cover?
PIP insurance covers more than people think.
In New York, PIP typically pays for:
Medical Expenses
Doctor visits, ER care, hospital bills, physical therapy, diagnostic imaging, prescription drugs, and any treatment deemed “reasonable and necessary.”
Lost Wages
PIP covers 80% of your lost earnings, up to a maximum of $2,000 per month for up to three years.
Transportation to Medical Appointments
This includes mileage reimbursement or public transit used for treatment.
Home Care & Household Help
If your injury prevents you from doing daily tasks, PIP may cover assistance.
Death Benefits
If a crash results in a fatality, PIP provides a $2,000 death benefit payable to the estate.
PIP does not cover pain and suffering or property damage—those fall under a separate personal injury claim or lawsuit.
How Does PIP Insurance Work?
After a car accident, you must file a PIP application (NF-2 form) within 30 days. Missing this deadline can lead to your claim being denied.
Once submitted, your insurance company is responsible for paying medical bills directly to providers so you’re not stuck with out-of-pocket costs.
Key Things to Remember
- You must see medical providers who properly bill no-fault insurance.
- Insurance companies may schedule IME exams (independent medical exams).
- They can deny treatment if they believe it’s unnecessary or not related to the crash.
This is where having a personal injury lawyer becomes helpful—especially if treatment is denied or wage-loss benefits are cut off.
PIP vs. Other Types of Coverage
Many people confuse PIP coverage with bodily injury liability or health insurance. Here’s the difference:
- PIP (Personal Injury Protection): Pays your medical bills and lost wages no matter who caused the accident.
- Bodily Injury Liability: Pays others if you caused the crash.
- Health Insurance: Kicks in after PIP is exhausted or denied.
PIP is your primary coverage after a car crash in New York. Your health insurance is secondary.
When Can You Sue in New York If PIP Covers So Much?
New York’s no-fault system limits lawsuits to cases involving a “serious injury” as defined by NY Insurance Law §5102(d).
You can typically sue if you have:
- A fracture
- Significant disfigurement
- Permanent loss of use of a body part
- A permanent injury that limits daily activities
- Medical evidence showing you were unable to perform daily tasks for at least 90 of the 180 days after the crash
These lawsuits allow victims to pursue compensation for pain and suffering, something PIP does not cover.
Why Clients Ask Us About PIP
People usually reach out to Chaikin Trial Group when:
- PIP stops paying their medical bills
- The insurance company demands an IME
- Wage-loss benefits are denied
- They’re unsure whether their injuries qualify as “serious”
- They’re overwhelmed by paperwork and deadlines
Even though PIP seems straightforward, it often becomes complicated—fast.
Bottom Line: PIP Is the Foundation of Every New York Car Accident Claim
If you’ve been in a crash, PIP is one of the first things you’ll deal with, and understanding how it works helps protect your rights from day one. But if your injuries are serious—or your insurance company isn’t cooperating—you may need legal help to move beyond what PIP covers.
Chaikin Trial Group guides clients through both PIP issues and personal injury lawsuits so they can get proper medical care, wage support, and compensation. Contact us today.
