Car Insurance After a PIP Claim
Which car insurance companies are cheapest after a PIP claim?
On average, one Personal Injury Protection (PIP) claim will raise your car insurance premium $4 per year. Let’s explore the ins and outs of car insurance with a PIP claim, including what Personal Injury Protection covers, which companies offer the most affordable PIP coverage, and some helpful tips on how to use this insurance. Already know you want a lower premium? Enter your ZIP code above to receive quotes tailored to your driving profile.Â
Key Takeaways
- Personal Injury Protection coverage is required in 12 no-fault states
- It applies to you and your passengers, not drivers outside of your vehicle
- Rates after PIP claims will vary, but based on our sample profile USAA and Nationwide were the most affordable
- If you're injured in a car accident, your health insurance company will usually require you to use your PIP coverage first
What is a PIP claim?
A PIP claim occurs when you use Personal Injury Protection to cover damages caused as a result of a car crash. This coverage, which is required in 12 no-fault states, is designed to cover the below expenses for you and your passengers:
- Medical care and treatment
- Lost wages
- Ambulance fees
- Medication costs
- Death benefits
This coverage does not apply to any property damage or bodily injury inflicted upon drivers outside of your vehicle. Moreover, the coverage applies no matter which driver is deemed at-fault.
How much PIP coverage should you have?
The amount of PIP coverage needed is often determined by your state. Michigan, for example, requires unlimited PIP. As a result, Michigan drivers face expensive car insurance costs. Other states, like Florida, require PIP to cover 80% of medical bills and 60% of lost wages, up to $10,000.
What are the cheapest insurance companies after a PIP claim?
The amount you will pay after a PIP claim will vary considerably depending on your company and the circumstances of the claim. We generated a national average rate after a PIP claim by using a sample driving profile. USAA is the cheapest insurance provider after one PIP claim, followed by GEICO and State Farm.
| Company | Avg. Annual Premium |
|---|---|
| Allstate | $2,414 |
| Progressive | $1,885 |
| Farmers | $1,859 |
| State Farm | $1,569 |
| GEICO | $1,542 |
| Nationwide | $1,476 |
| USAA | $1,365 |
If you do not qualify for USAA, Nationwide will be the most affordable at an annual rate of $1,476.
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
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Finding cheap car insurance after 2 PIP claims
The amount you will pay for car insurance after two PIP claims may vary considerably depending on your driving profile, location, and the circumstances surrounding the incidents. We generated a typical driver profile in order to provide average rates after PIP claims.
See below rates from major insurance companies after two PIP claims.Â
| Company | Avg. Annual Premium |
|---|---|
| Allstate | $2,488 |
| Progressive | $1,991 |
| Farmers | $1,960 |
| State Farm | $1,569 |
| GEICO | $1,565 |
| Nationwide | $1,476 |
| USAA | $1,378 |
USAA increases rates by just $13 per year after a second PIP claim. Progressive increases rates by an average of $106 with two PIP claims. If you do not qualify for USAA coverage, consider GEICO and Nationwide as alternatives.
Should you file a PIP claim or use your health insurance?
If you are injured in a car accident, your health insurance will usually require you to use your PIP coverage as your primary and potentially use your health insurance as the secondary. However, some states have exemptions to this rule. In New Jersey, for example, you can use your health insurance as your primary form of medical care if you elect to.
Med Pay vs. PIP:
Medical payments coverage, or Med Pay, provides fewer coverage options than PIP. While they both provide medical and funeral benefits, Med Pay provides no coverage for loss of wages or living expenses.
Additional resources
Your experience after a PIP claim may vary considerably. Because of the high cost of claims payouts, many companies drop clients should they accumulate more than three PIP claims in a three-year period. If you’re currently in a situation where you cannot find insurance because of your driving record, your best option is to shop with non-standard insurance companies.
These smaller insurance companies sometimes provide coverage to a higher-risk pool of clients. If you’re interested in speaking to an agent to find coverage after a PIP claim, call 888-444-2833 or click below!
Compare rates from top insurance companies online today!
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.