Glossary
Personal injury protection, defined
First-party auto coverage that pays the policyholder's own medical bills, a share of lost wages, and sometimes household help and funeral costs after a crash, no matter who caused it. It is the working part of a no-fault system and is mandatory in the states that use one.
In practice
Utah requires it; Arizona, Nevada and Idaho do not, and in those states carriers offer medical payments coverage instead or as well. Where it is required, the state sets a minimum benefit, $3,000 per person in Utah per https://dmv.utah.gov/register/insurance/, and drivers can buy more. It pays quickly because there is no fault argument, and it coordinates with health insurance in a way that varies by carrier: some pay first, some pay after the health plan. Wage replacement is capped and usually starts after a short waiting period. A driver hurt as a pedestrian is covered by their own auto PIP, which surprises people. Buying only the minimum is common and usually a mistake for anyone whose health plan has a high deductible.
A worked example
Suppose a Utah driver with $10,000 of this coverage is injured by a driver who ran a stop sign. Her emergency room and physical therapy bills total $7,000 and she misses two weeks of work. Her own carrier pays the $7,000 and a capped share of her wages promptly. Suppose bills continue past $10,000; she then claims against the at-fault driver's liability coverage for the rest. Hypothetical figures.
Applies to: Auto InsuranceHealth Insurance