What PIP is
PIP — Personal Injury Protection, also called "no-fault" coverage — is required on every Minnesota auto policy. After an accident, it pays your medical and certain other expenses no matter who was at fault, so you don't have to wait for a liability fight to get care.
The four things PIP pays for
1. Medical expenses
Reasonable medical care related to the crash — hospital, doctor, rehabilitation, and similar — up to your medical limit (minimum $20,000). This applies to you and to passengers in your vehicle.
2. Wage loss
If your injuries keep you from working, PIP replaces a portion of your lost income (commonly up to 85% of gross wages, subject to a monthly cap and your non-medical limit). This is one of the most valuable — and most overlooked — parts of no-fault.
3. Replacement services
If you can't do everyday tasks you'd normally handle yourself — childcare, cleaning, yard work — PIP can reimburse the reasonable cost of paying someone else to do them (commonly up to a set daily amount).
4. Survivor / funeral benefits
If a crash is fatal, no-fault provides funeral expense benefits and survivor economic-loss benefits to dependents, within policy limits.
Stacking up PIP
The state minimums are a floor. Higher medical and income-loss limits are inexpensive relative to the protection they provide, especially for higher earners whose wage-loss need exceeds the $20,000 non-medical minimum. Review your limits if your income has grown.
How PIP interacts with health insurance
PIP is typically the primary payer for auto-crash injuries in Minnesota — it generally pays before your health insurance. Coordinating benefits correctly can affect your costs, so it's worth understanding before you choose limits.