PIP (Personal Injury Protection)

Personal Injury Protection, abbreviated PIP, is an auto insurance coverage required or available in many states. PIP pays the policyholder's medical bills, a portion of lost wages, and certain related expenses after a motor vehicle crash, regardless of which driver was at fault. PIP is the core of the no-fault insurance system in states like Florida, Michigan, New York, and New Jersey.

PIP coverage limits vary widely by state and by policy. Florida famously caps PIP at $10,000 for most claimants, which is often exhausted by an emergency room visit and a few weeks of follow-up. Michigan, by contrast, allows lifetime medical PIP under some legacy policies. When PIP runs out, the injured driver typically pivots to a third-party liability claim against the at-fault driver or to private health insurance.

For personal injury law firms in no-fault states, PIP exhaustion is the moment when a lien pharmacy becomes valuable. The client's prescriptions were covered while PIP lasted; the day PIP runs out, the client is suddenly cash-paying for muscle relaxants and pain medications that they cannot afford. A lien pharmacy like CreoRx steps in, fills under the pharmacy lien, and keeps the client adherent through the rest of treatment.

PIP applies only to motor vehicle injuries. It does not apply to premises liability, workplace injury outside the auto policy, or general negligence cases. Those cases rely on health insurance, the at-fault carrier, and the lien pharmacy.