Personal Injury Protection (PIP) is a form of “no-fault” insurance that covers certain costs after a car accident, no matter who caused the crash. It is necessary, as Massachusetts requires drivers to carry PIP coverage as part of their auto insurance policy.
While some drivers may qualify to waive part of this coverage, doing so without fully understanding the rules can leave you exposed to unexpected costs. DiBella Law Injury and Accident Lawyers is here to break down what PIP coverage is and whether it’s necessary in MA.
What Does PIP Cover in Massachusetts?
PIP pays for some of the immediate costs of an accident. PIP coverage in Massachusetts includes:
- Medical expenses: This may include any expenses associated with surgery, hospitalization, doctor’s visits, medication, physical therapy, and other necessary medical care.
- Lost wages: PIP pays for up to 75% of your pre-accident income to cover the work you missed due to the crash.
- Replacement services: This includes payment for household help, childcare, or other essential services you cannot perform while recovering.
Your PIP insurance will pay for these losses up to the policy limit. Massachusetts requires drivers to carry at least $8,000 in PIP coverage, but you can choose to purchase a policy with a higher limit.
Is PIP Coverage Mandatory or Optional in MA?
Massachusetts law requires every auto insurance policy to include PIP coverage. Making it mandatory reduces lawsuits over minor car accidents and allows injured people to get compensation more promptly.
However, you may be eligible to purchase a policy with a “PIP deductible.” According to MA auto insurance PIP waiver rules, the deductible can be as high as $8,000. This allows you to essentially waive PIP coverage by agreeing to pay a portion of your expenses after a car accident.
This option is primarily designed for people who have health insurance that would step in instead. For example, some drivers with comprehensive HMO plans or Medicare plus a Medigap policy may choose a high PIP deductible.
To get a PIP waiver, you must sign a PIP deductible endorsement when purchasing or renewing your auto insurance policy. Once in place, the deductible reduces the amount of PIP benefits you can collect, so it’s important to review your health insurance coverage carefully before signing.
When You Should Consider Keeping PIP
Even if your health insurance might cover some accident-related treatment, there are strong reasons to keep full PIP coverage:
- Immediate coverage for medical care: Unlike most health insurance plans, PIP covers treatment right away after a crash without having to meet a deductible.
- Income replacement: If your injuries keep you from working, PIP pays for a significant portion of your lost earnings.
- Coverage for essential services: If you can’t manage childcare or other household responsibilities, PIP helps pay for replacement services.
- Extra financial protection: PIP can step in to cover expenses your health insurance leaves behind, including co-pays, deductibles, and certain treatments. This is especially useful if you don’t have robust health coverage or gap insurance.
While these benefits make PIP an important safety net, it does have its limits. PIP will not pay for property damage or pain and suffering, so you’ll need to address those losses through other insurance claims.
When It Might Be Safe To Waive PIP
Choosing a PIP deductible is usually only sensible if you have strong, comprehensive health insurance. It may make sense if your plan covers hospital care, outpatient treatment, emergency services, and medical equipment without high deductibles or copays.
Remember that health insurance does not cover every benefit that PIP provides, such as lost wages or replacement services. Make sure you understand these gaps and have a clear backup plan before signing a deductible agreement.
Cost Overview and What You Pay
In Massachusetts, the average driver pays around $1,500 to $2,000 per year for full coverage auto insurance. PIP usually makes up only a small fraction of that cost—often less than 5 percent, meaning it may cost only $75 to $100 per year.
Choosing a high PIP deductible may save you just a few dollars a month, and it comes with significant risk. For example, waiving the full $8,000 of PIP benefits could lower your premium by $75 a year, but it would leave you personally responsible for thousands of dollars in medical bills and lost wages if you’re hurt in a crash. For most drivers, the modest savings aren’t worth the potential out-of-pocket exposure.
Steps to Choose Your PIP Option in Massachusetts
Take these steps before deciding whether to keep or waive PIP:
- Review your health insurance. Confirm whether it covers car accident treatment, and consider how and when it might step in compared to PIP. If your plan leaves you with high copays or deductibles, keeping full PIP might be the better option.
- Consider different accident scenarios. Think about what would happen financially in different situations. A minor crash may mean only a few hundred dollars of medical bills. In contrast, a major collision could involve hospital stays, weeks of missed work, and even the need for replacement services.
- Weigh the costs and benefits. Compare the small savings from a PIP deductible with the out-of-pocket exposure you’d face if you were seriously injured.
What To Do if You’re Injured and Waived PIP
If you choose a PIP deductible and are injured in a crash, your health insurance will cover your medical bills, but you may first need to meet your deductible or pay copayments before that coverage applies.
Without full PIP benefits, you will also have no support for lost wages, childcare, or household help while you recover. In these situations, your remaining option may be to file a liability claim against the at-fault driver. Massachusetts law sets specific thresholds for these claims, so speaking with a personal injury lawyer can help you determine if you qualify and what compensation may be available.
How a Personal Injury Attorney Can Help You Secure Compensation in Massachusetts
Many drivers ask, “What is PIP coverage, and is it necessary in MA?” Navigating these questions can add stress to the aftermath of an accident, but DiBella Law can help. Attorney Chris DiBella and his team can review your policy, explain how PIP interacts with your health insurance, and pursue additional claims if another driver is at fault.
We’re here to make sure you understand your options and provide the support you need to recover fair compensation. Our consultations are always free, and you pay us nothing unless we win your case. Our team is available 24/7 to answer your questions—contact us online or call 855-342-3552 (855-DiBella) today to get started.