PIP is no-fault insurance coverage, meaning regardless whose fault the accident is, it applies. PIP coverage also extends to the passengers in your car. PIP pays for your medical bills that are reasonable and necessary to treat the injuries caused by the accident. PIP also pays for a portion of your wage loss that is incurred after the first 14 days following the accident. In addition, PIP also provides loss of household services, which is payment to non-family members for work you cannot do around the house (housekeeping, yard work…). In Washington State, insurance companies are required to offer PIP coverage when selling insurance. If you do not want PIP, you must reject PIP by signing a waiver or checking a box. If you have been in an accident that is not your fault, even if the at-fault driver has insurance, your PIP is primary insurance when it comes to paying medical bills as they are incurred. This means that your health insurance will not pay your medical bills unless you show them that you do not have PIP coverage or your PIP coverage has run out. The at-fault party’s insurance is not going to pay your medical bills as you incur them. The at-fault party’s insurance will not pay anything until you are ready to settle your entire bodily injury claim (this is separate from your vehicle property damage claim). Typically, it is best to settle your claim after you have completed your treatment and know how much your medical bills and wage loss amounts to. Without knowing how much the injuries from the accident are going to cost you, you’re not in a good position to discuss settlement of the claim. In Washington State, the minimum PIP coverage is $10,000.00 for reasonable and necessary medical treatment for each person that was in the car. With PIP, there are no co-pays or in-network providers. PIP will pay the full amount of the bill, without a referral, as long as it is reasonable and necessary. PIP coverage is available for three years after the day of the accident or until it runs out. When the claim is settled with the at-fault party’s insurance company, PIP must be paid back from the settlement. If you have an attorney, 100% of the PIP is not paid back because you are entitled to a reduction called a Mahler reduction. A Mahler reduction is a reduction for the pro-rata share of attorney’s fees and legal costs. To sum it up, it is a good idea to carry PIP coverage because it pays your medical bills regardless of fault. The at-fault party’s insurance company will not pay your bills as you incur them, so PIP is there to reduce the financial burden.