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PIP stands for personal injury protection, a type of car insurance that pays certain crash costs no matter who caused the collision. What does PIP stand for, what does it cover, and does it apply to Illinois drivers? Those questions often come up when medical bills arrive, and insurance terms stop making sense.
Illinois does not require PIP, so most Chicago drivers rely on other coverages to pay for crash injuries. At Conboy Law, we help people hurt in collisions understand which policies apply and what options they may have.
If you have questions about your coverage after a Chicago crash, call us at 312-726-9000 for a free case evaluation.
What Does PIP Stand For?
PIP stands for personal injury protection. It is first-party coverage, which means you file the claim with your own insurance company instead of the at-fault driver's insurer. Because it pays regardless of fault, people often call it no-fault coverage.
Outside of insurance, PIP can also mean a workplace performance improvement plan or a UK disability benefit. On an auto policy, it refers to injury coverage.
What PIP Typically Pays For
Depending on the state and the policy, PIP may help pay for the following:
- Medical treatment, from emergency room care to physical therapy
- A portion of wages lost while you recover
- Household services you cannot perform because of your injuries
- Funeral expenses after a fatal crash
What PIP Does Not Cover
PIP is limited to injury-related costs for the people it protects. It generally does not pay for:
- Repairs to your vehicle
- Injuries suffered by the other driver
- Damage to someone else's property
- Pain and suffering and other non-economic losses
Those losses are usually handled through liability, collision, or other coverages.
Is PIP Required in Illinois?
No. Illinois does not require PIP. Under 625 ILCS 5/7-601, vehicles driven or registered in Illinois generally must instead carry a liability insurance policy that meets state minimums.
This is a fault-based approach. The driver who causes a crash is generally responsible for the resulting injuries, and that driver's liability insurer typically pays those claims up to the policy limits.
Coverages Illinois Does Require
According to the Illinois Department of Insurance, Illinois auto policies must include the following coverages. You can compare them with your own policy using our guide to Illinois car insurance requirements.
- Bodily injury liability of at least $25,000 per person and $50,000 per crash under 625 ILCS 5/7-203
- Property damage liability of at least $20,000 per crash under the same statute
- Uninsured motorist bodily injury coverage in the same $25,000 and $50,000 amounts, required by 215 ILCS 5/143a
- Underinsured motorist coverage whenever you buy uninsured motorist limits above the minimum
Uninsured motorist coverage is especially important without PIP. It lets you file an injury claim with your own insurer when the at-fault driver has no insurance or leaves the scene.
Where PIP Is Required
PIP is most closely tied to no-fault states. In those states, drivers usually turn to their own PIP coverage first after a crash, and claims against the at-fault driver may be restricted unless injuries meet certain thresholds. Our resource on no-fault vs. at-fault insurance explains how the two systems differ.
Michigan is a nearby example. Drivers there choose a PIP medical limit, and Michigan's PIP medical coverage rules make unlimited coverage the default when no option is selected. If you are hurt while driving in a no-fault state, that state's rules and your policy's out-of-state terms may affect which coverage applies.
PIP vs. MedPay: What Illinois Drivers Can Carry Instead
Illinois drivers who want no-fault medical coverage usually look to medical payments coverage, often called MedPay. The Department of Insurance lists MedPay as an optional coverage you can add for an extra premium. Because it pays without a fault investigation, MedPay can help with bills while a liability claim is still pending.
What MedPay Covers Under Illinois Policies
MedPay covers medical and funeral expenses for you and your passengers after a crash in your vehicle. It also covers you and your family members when struck by a vehicle while walking or while riding in another vehicle. Coverage applies even if you caused the crash.
MedPay and PIP work in similar ways, but they are not identical. Key differences include:
- PIP often includes lost wages, while MedPay focuses on medical and funeral costs
- PIP is mandatory in some states, while MedPay is optional in Illinois
- Limits for both vary by policy, so the amount available depends on what you bought
How to Check Whether You Have MedPay
Many drivers are not sure what their policy includes until they need it. Use these steps to find out:
- Open your declarations page in your insurer's app, online account, or renewal paperwork.
- Look for a line labeled Medical Payments or MedPay, along with its per-person limit.
- Check the uninsured and underinsured motorist limits listed for each vehicle.
- Report the crash to your insurer promptly and ask how to submit medical bills.
- Keep copies of every bill, receipt, and explanation of benefits you receive.
Who Pays Your Medical Bills After an Illinois Crash Without PIP?
Without PIP, crash-related medical bills are usually paid from several sources at different stages of a claim. These may include:
- Your MedPay coverage, if you carry it
- Your health insurance, subject to its deductibles and copays
- The at-fault driver's bodily injury liability coverage, typically through a settlement or verdict
- Your uninsured or underinsured motorist coverage when the at-fault driver has little or no insurance
The order and timing depend on your policies and the facts of the crash. Learn more about who pays your medical bills after a Chicago crash.
Illinois Caps Medical Liens on Your Settlement
Doctors and hospitals that treat you may file liens against your injury claim under the Health Care Services Lien Act. Under 770 ILCS 23/10, all of those liens combined cannot exceed 40% of your settlement or verdict. No single category of provider, such as hospitals or physicians, may take more than one-third.
These caps can affect how much of a recovery you keep. We review lien notices to check the charges and whether the statutory limits apply.
How Fault and Deadlines Affect Your Illinois Injury Claim
Because Illinois does not use PIP, fault matters a great deal in an injury claim. Under 735 ILCS 5/2-1116, you cannot recover damages if you are found more than 50% responsible for the crash. At 50% or less, your damages are reduced by your percentage of fault.
For example, a person found 20% at fault would see a $100,000 award reduced to $80,000. Insurers often raise shared fault to lower what they pay, so it helps to understand Illinois comparative negligence early.
Timing matters too. Most Illinois personal injury lawsuits must be filed within 2 years after the claim accrues under 735 ILCS 5/13-202. Claims involving a government vehicle or public employee may carry shorter deadlines.
What If Your Own Insurer Delays a MedPay or Uninsured Motorist Claim?
MedPay, uninsured motorist, and underinsured motorist claims are filed with your own insurance company. That company still has a financial incentive to limit what it pays.
Under 215 ILCS 5/155, a court may award reasonable attorney fees, costs, and a limited penalty when an insurer's delay in settling a claim is vexatious and unreasonable. We help clients document delays and pursue uninsured motorist claims in Chicago and other claims under their own policies.
Keep written records of every call, request, and response from the adjuster.
How Conboy Law Helps With PIP and Coverage Questions
Insurance questions often become urgent after a serious crash. Our team can help by:
- Reviewing your declarations page and every policy that may apply
- Communicating with adjusters so you can focus on treatment
- Documenting medical expenses, lost income, and other damages
- Checking medical liens against Illinois limits
- Pursuing a claim against the at-fault driver when the facts support one
When more than one policy may apply, we look at how each one fits together so bills go to the right place.
Frequently Asked Questions About PIP Insurance in Illinois
Illinois law does not require PIP, and the Department of Insurance lists MedPay, not PIP, among optional Illinois coverages. Ask your agent what your insurer offers and check your declarations page for medical coverage.
No. Illinois uses a fault-based system, so the driver responsible for a crash is generally liable for the injuries it causes. Your own share of fault can reduce or bar your recovery.
Yes. MedPay pays covered medical and funeral expenses even if you caused the crash, up to your policy limit.
No. These coverages focus on economic costs such as medical bills. Compensation for pain and suffering generally comes from a claim against the at-fault driver.
Get clarity, confidence, and powerful representation.
Talk to Conboy Law About Your Car Insurance Coverage in Chicago
Now that you know what PIP stands for in car insurance, the next question is which coverage applies to your injuries. If you were hurt in a Chicago crash, Conboy Law can review your policies and explain your options.
We handle injury claims on a contingency fee basis. Call 312-726-9000 or contact us online for a free case evaluation.
Joseph M. Conboy is the founding attorney of Conboy Law and represents victims and families in serious personal injury, medical malpractice, and wrongful death cases throughout Illinois. He has obtained numerous multi-million-dollar results and has been recognized by Super Lawyers as a Rising Star. As the firm’s primary litigator, he works closely with clients to build strategies tailored to the facts of each case.
