Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection pays medical bills, lost income, and replacement services like childcare or housekeeping after a car accident, covering you and your passengers without requiring proof the other driver was at fault. Maryland mandates $2,500 minimum PIP, which pays out before your health insurance kicks in. The coverage applies to injuries sustained in your vehicle or as a pedestrian struck by a car, with benefits typically available for up to three years from the accident date.
- You lose control on ice and hit a guardrail. You suffer a broken wrist requiring surgery, with $8,000 in medical bills and two months of lost wages totaling $6,000. Your $2,500 minimum PIP pays the first $2,500 in medical costs immediately. Your health insurance covers the remaining $5,500 in medical bills after deductibles, and you receive no wage replacement because your PIP limit is exhausted. If you had carried $10,000 PIP, it would have covered all medical costs and $2,000 in lost wages.
- Your friend is a passenger when another driver runs a red light and T-bones your car. Your friend sustains $4,500 in medical bills and misses three weeks of work, losing $2,200 in income. Your PIP covers your friend's injuries up to your policy limit, paying the first $2,500 toward medical costs regardless of the other driver's fault. The at-fault driver's liability insurance pays the remaining $2,000 in medical bills and the full $2,200 in lost wages. Your PIP acts as primary coverage, reducing the time your friend waits for payment from the other driver's insurer.
- You're crossing a parking lot when a reversing car strikes you, causing a concussion and $3,200 in emergency room and follow-up care. The driver's PIP coverage pays your medical bills up to their policy limit because you were injured by their vehicle. If the driver carried only Maryland's $2,500 minimum, their PIP pays $2,500 and their bodily injury liability covers the remaining $700. Your own PIP does not apply because you were not occupying a vehicle at the time of injury.
Who Needs Personal Injury Protection Insurance?
You should carry PIP above Maryland's $2,500 minimum if your health insurance has a high deductible, limited coverage, or excludes auto accident injuries. Drivers without health insurance benefit most, as PIP pays immediately without requiring you to prove fault or wait for the other driver's insurer to settle. Households with multiple drivers or passengers who frequently ride in your vehicle gain broader protection, since PIP covers anyone injured in your car regardless of their own insurance status.
Compare your health insurance deductible and out-of-pocket maximum to the cost of carrying higher PIP limits. If your health plan's deductible exceeds $2,500, increasing PIP to $5,000 or $10,000 costs $10 to $20 more per month but pays medical bills immediately without involving your health insurer. If you have no health coverage or a high-deductible plan, keep PIP at the highest limit you can afford — it's the only coverage that pays your own injuries without requiring fault determination or litigation.
How Much Does Personal Injury Protection Insurance Cost?
Maryland drivers typically pay $8 to $18 per month for $2,500 minimum PIP coverage, or $96 to $216 annually. Higher limits of $10,000 cost $20 to $35 per month.
- Policy limit selected — $2,500 minimum costs significantly less than $10,000 or $25,000 limits.
- Deductible chosen — selecting a $250 or $500 PIP deductible reduces premium by 10 to 15 percent.
- Household size — more licensed drivers or vehicles on the policy increases PIP cost proportionally.
- Zip code — urban areas with higher accident frequency and medical costs see premiums 20 to 30 percent above rural rates.
- Claims history — prior PIP claims in the past three years raise rates by 15 to 25 percent at renewal.
- Health insurance status — waiving PIP eliminates the cost entirely if you carry qualifying health coverage.