What is PIP Insurance and How Does is Affect You?

In the United States, auto insurance laws are handled at the state level, which means that each state can be a no-fault state, an at-fault state, or some combination. Utah happens to be one of the 12 no-fault states, which means that all drivers are required to carry insurance to cover at least some of the injuries and damages they sustain in an automobile incident. Regardless of who was at fault in the crash, since Utah is a no-fault state, everyone involved files a claim with their own insurance. In other fault or tort states, liability has to be determined before medical bills get paid, then the person liable for the damage is responsible for the medical expenses.

According to an article from the Insurance Information Institute, no-fault auto insurance legislation was introduced in the 1970s in hopes of avoid the hassle of determining which driver is responsible before medical bills can be paid. 

Certain rules must be followed in a lawsuit regarding an auto accident in Utah. These rules are sometimes referred to as “threshold conditions.” 

In Utah, drivers are required to have personal injury protection (PIP) Insurance, which can pay for medical bills, lost income, and some other expenses after an accident —up to the limit of the policy’s PIP coverage. PIP can pay for the policy holder’s expenses regardless of who was at fault in the collision. PIP  coverage does not, however, take care of damages to the car – property damage is assigned to whoever is later determined to be at fault. 

Utah requires all drivers to have at least $3,000 of PIP insurance. PIP coverage can provide money to be used toward: medical expenses; death benefits if someone was killed in the incident; lost income due to injuries sustained in the crash; and certain other expenses. 

How much does PIP insurance cost in Utah? 

The cost of PIP insurance in Utah is based on the amount of coverage, the city you live in, your driving record, and other factors. It is important to note that income loss protection is not required, and waiving it can reduce your premiums. This option is only available, though, if you haven’t been employed for at least 31 days before purchasing coverage and 180 days after purchase. 

Here are some examples of the costs of PIP coverage:

$3,000 PIP Coverage$5,000 PIP Coverage$10,000 PIP Coverage$25,000 PIP Coverage $100,000 PIP Coverage 
Monthly Cost of PIP with Income Loss Protection$14.83$18.98$29.21$41.67$75.77
Monthly Cost of PIP without Income Loss Protection $13.34$17.08$26.29$37.50$68.19

Since Utah requires drivers to carry PIP insurance, it also restricts drivers’ ability to sue the opposing party in an crash unless damages reach a certain threshold. To sue the other party for damages received in a collision, at least one of the following must be met:

  • Injuries resulting in more than $3,000 in reasonable and necessary medical expenses 
  • Someone died in the incident 
  • A person was dismembered or disfigured in the incident
  • There were injuries which resulted in a permanent impairment or a disability 


For more information about PIP insurance, call Moxie Law Group, an experienced personal injury firm in Utah at 801-599-0691.