How Much Does Personal Injury Insurance Cost?

The cost of personal injury insurance, also known as personal injury protection (PIP) or medical payments coverage (MedPay), can vary widely based on several factors. On average, personal injury protection (PIP) coverage typically ranges from $50 to $200 per year. However, individual premiums can differ significantly depending on specific circumstances and choices. 

A very important thing to consider, however, is that using that insurance can be tricky. If you're trying to navigate recovering PIP benefits post-accident or already know that your expenses will exceed what's available to you in PIP coverage, take your case to an injury lawyer. 

If you or a loved one has experienced such an injury, Morgan & Morgan’s personal injury attorneys are here to help. Hiring one of our lawyers is easy, and you can start now with a free, no-obligation case evaluation.

What Is Personal Injury Insurance?

Personal injury protection is a specific form of insurance that covers damages when you're hurt in an accident. Examples include lost wages and medical bills, both of which can add up quickly. For an accident victim, making sure that insurance pays can be critical for giving you the time and focus to heal and get better after a devastating accident. 

In most states, PIP coverage is optional. However, there are 16 states across the country that have strict PIP minimums. This can be essential for helping overlap with your MedPay or health insurance, but multiple policies might even be recommended. Personal injury protection might also be referred to by insurance experts as no-fault insurance. This extends to those instances in which you are hit as a pedestrian, a cyclist, or a passenger in another person's car.

This is different from bodily injury liability insurance. Liability insurance, for example, covers the passenger and driver's medical expenses when you're found at fault for causing a car wreck. 

Bodily PIP coverage, however, pays for your own expenses when you are in an accident. There might be an overlap with coverage provided by your Medpay plan or health insurance policy. 

But PIP coverage is created and drafted for car-related injuries. Certain health insurance policies exclude car accident injuries from coverage, meaning that PIP insurance can help to cover the gap and help you when you need it most. While PIP is required in some places, it's optional in others, and those who live in optional states might choose this protection as some additional peace of mind within a comprehensive coverage plan. 

What Factors Influence the Cost of Personal Injury Insurance?

Several factors determine the cost of personal injury insurance. These factors can vary significantly from one individual to another and from one insurer to another. 

Coverage Limits

Higher Limits, Higher Premiums: Coverage limits can range from $5,000 to $100,000 or more. Opting for higher coverage limits increases premiums but provides more extensive protection.

The amount of coverage you choose directly impacts the cost of your insurance. Higher coverage limits will result in higher premiums, while lower limits can reduce your costs. 

Deductibles

Higher Deductibles, Lower Premiums: Choosing a higher deductible can lower your premium, but it also means you'll pay more out-of-pocket if you need to make a claim.

Higher deductibles generally result in lower premiums, while lower deductibles increase your premium. Choosing a deductible that fits your financial situation is essential.

State Requirements

Mandatory vs. Optional: Some states require PIP coverage as part of their no-fault insurance laws, which can increase costs. For instance, Florida and Michigan have high PIP requirements, leading to higher premiums in those states.

Driving Record

Safe Drivers Pay Less: Your driving history plays a significant role in determining your insurance costs. A clean driving record generally results in lower premiums, while a history of accidents or violations can increase costs.

Location

Urban vs. Rural: Urban areas with higher traffic congestion and accident rates typically have higher premiums compared to rural areas.

Vehicle Type

Make, Model, and Year: The make, model, and year of your vehicle can influence your insurance costs. Expensive or high-performance vehicles may cost more to insure due to higher repair costs and increased risk of theft or damage.

Age and Gender

Young and Male Drivers: Statistically, younger drivers and male drivers tend to have higher accident rates, which can lead to higher insurance premiums. Some insurers may offer discounts for older, more experienced drivers.

Credit Score

Good Credit Saves Money: In some states, insurers use credit scores to help determine insurance premiums. A higher credit score can lead to lower premiums, as it is often associated with responsible financial behavior.

Additional Coverage Options

More Coverage, More Cost: Adding optional coverage, such as uninsured/underinsured motorist coverage, can increase your overall premium. However, these additional coverages can provide essential protection and peace of mind.

What Are the Average Costs for PIP by State?

High-Cost States

Michigan

• Average Annual PIP Cost: $1,000 - $3,000
• Factors: Michigan has the highest PIP requirements in the country due to its no-fault system, which includes unlimited lifetime medical benefits for accident-related injuries.

Florida

• Average Annual PIP Cost: $150 - $400
• Factors: Florida's no-fault law requires drivers to carry a minimum of $10,000 in PIP coverage, leading to relatively higher costs due to the state's high accident and fraud rates.

New York

• Average Annual PIP Cost: $150 - $300
• Factors: New York requires a minimum of $50,000 in PIP coverage, contributing to higher premiums. The state also has a high cost of living and healthcare expenses.

Moderate-Cost States

Texas

• Average Annual PIP Cost: $75 - $150
• Factors: Texas offers PIP as an optional add-on with a minimum of $2,500 in coverage, but higher limits can increase premiums.

New Jersey

• Average Annual PIP Cost: $100 - $250
• Factors: New Jersey requires a minimum of $15,000 in PIP coverage, but offers options to increase this amount, impacting overall costs.

Pennsylvania

• Average Annual PIP Cost: $50 - $150
• Factors: Pennsylvania requires a minimum of $5,000 in PIP coverage. The state’s hybrid no-fault system offers both full tort and limited tort options, influencing premium costs.

Low-Cost States

California

• Average Annual PIP Cost: $50 - $100
• Factors: PIP is not required in California, leading to lower overall costs. Drivers often opt for MedPay instead, which covers medical expenses.

Ohio

• Average Annual PIP Cost: $30 - $75
• Factors: Ohio doesn’t mandate PIP, contributing to lower costs. Optional MedPay coverage can be purchased at relatively low rates.

Illinois

• Average Annual PIP Cost: $40 - $80
• Factors: Illinois does not require PIP coverage, but drivers can opt for MedPay at lower rates.

How Can I Manage and Reduce Personal Injury Insurance Costs?

There are a few steps you can take to manage and reduce your personal injury insurance costs.

First, shop around and compare quotes. Use online tools and insurance comparison websites to find competitive rates from multiple insurers.

You can also evaluate your needs to determine the right coverage level. Assess your medical expense needs and potential lost wages to choose an appropriate coverage level.

You can also explore the option to bundle policies. Combining auto, home, and personal injury insurance with the same provider can lead to significant discounts.

Maintaining a clean driving record can earn you safe driving discounts. Avoid accidents and traffic violations to keep premiums low and qualify for safe driver discounts.

You should also review your deductible options. Balance the costs and risks and choose a deductible that balances lower premiums with what you can afford to pay out-of-pocket in an accident.

And sometimes you can just ask about discounts. Really? Yes! It never hurts to ask. Ask about discounts and explore savings. Inquire about all available discounts, such as those for safe drivers, good students, or members of certain organizations.

Also remember that good credit helps, so check yoru credit to ensure that you’re getting the rates you deserve. In states where credit score impacts premiums, maintaining a good credit score can lead to lower insurance costs.

Lastly, review and update your policy regularly to ensure it meets your current needs and adjust as necessary based on changes in your life or driving habits.

Morgan & Morgan Can Help

Personal injury insurance costs can range from as low as $50 to over $200 per year, influenced by various factors like coverage limits, deductibles, state requirements, and personal demographics. By understanding these factors and taking steps to manage and reduce your premiums, you can ensure you have the necessary coverage without overpaying. Always compare quotes, evaluate your coverage needs, and ask about discounts to find the best value.

At Morgan & Morgan, we understand the complexities of insurance and are here to help you navigate your options. If you have any questions about personal injury insurance or need assistance with an insurance claim, our legal team is ready to provide the guidance and support you need to protect yourself and your loved ones effectively.

Contact Morgan & Morgan today for a free, no-obligation case evaluation to learn more.