Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection pays your medical expenses, lost wages, and funeral costs after a car accident, regardless of who caused the crash. Unlike liability coverage, which pays the other driver's bills when you're at fault, PIP covers you and your passengers immediately without waiting for fault determination. In New Hampshire, PIP is optional — the state allows drivers to meet financial responsibility through other means — but carriers must offer it if you choose to purchase coverage.
- You hit black ice and slide into a guardrail. You have $4,500 in emergency room bills and miss two weeks of work, losing $2,200 in wages. Your PIP policy pays the full $4,500 in medical costs and $2,200 in lost income, up to your policy limits, within days of filing. Your collision coverage separately handles the $3,800 in vehicle damage.
- You're rear-ended at a stoplight, but the other driver claims you reversed into them. You have $6,200 in medical bills and need physical therapy. Your PIP coverage pays immediately while fault is investigated, which can take weeks or months. If the other driver is eventually found at fault, their liability coverage reimburses your PIP carrier, but you never wait for payment.
- Your friend is riding with you when another driver runs a red light and T-bones your car. Your friend has $8,900 in medical bills but no auto insurance. Your PIP policy covers their injuries up to your per-person limit, typically without requiring them to file a claim against the at-fault driver first.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you don't have health insurance, have a high-deductible health plan, or work as a contractor without paid sick leave. It also benefits drivers who frequently carry passengers without their own coverage, since your PIP covers their injuries regardless of fault.
Compare your health insurance deductible and out-of-pocket maximum to PIP limits. If your health plan covers the first $5,000 and you'd miss two weeks of income without financial hardship, rejecting PIP saves $100–$250 annually. If you'd struggle to cover a $3,000 emergency room bill or can't afford unpaid time off, carry PIP with at least $5,000 medical and $2,500 lost-wage coverage.
How Much Does Personal Injury Protection Insurance Cost?
PIP typically adds $8–$22 per month to a New Hampshire policy, or $96–$264 annually, depending on limits selected and driving history.
- Coverage limits chosen — New Hampshire's $1,000 medical minimum costs less than $5,000 or $10,000 limits common in other states.
- Deductible selection — higher deductibles ($250–$500) lower premiums by 15–25% compared to zero-deductible PIP.
- Prior claims history — drivers who filed PIP claims in the past three years pay 10–30% more.
- Household size — policies covering multiple drivers or teenage drivers cost more due to increased injury risk.
- Zip code medical costs — areas with higher average emergency room and specialist fees see 10–20% higher PIP premiums.