Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection covers your medical expenses, lost income, and related costs after any auto accident, whether you caused the crash or not. It pays out immediately without waiting for fault determination or a liability claim to settle. In Arizona, carriers must offer PIP, but you can reject it by signing a written waiver — a decision that affects your ability to sue for non-economic damages like pain and suffering.
- The other driver is at fault, but their liability claim takes weeks to process. Your PIP pays your $4,200 in emergency room bills and $1,800 in lost wages immediately. You don't wait for the other driver's insurer to accept fault or issue payment. If you rejected PIP, you pay out of pocket or through health insurance, then seek reimbursement from the at-fault driver's liability coverage.
- You swerve to avoid debris and hit a guardrail. You have $6,500 in medical bills and miss two weeks of work. Your PIP covers the bills and lost income up to your policy limit. Liability coverage doesn't help because no other party is involved. Without PIP, you rely entirely on health insurance, which may not cover lost wages.
- Your friend is a passenger when you're hit by another driver. Your PIP covers your friend's $3,200 in medical costs immediately, regardless of who caused the crash. If you rejected PIP, your friend must file a claim against the at-fault driver's liability coverage or sue you if you were at fault — both processes take longer and require proving fault first.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you don't carry health insurance, work as a contractor or freelancer without paid sick leave, or want immediate medical cost coverage without waiting for fault determination. It's also valuable if you regularly transport passengers who lack their own health coverage, since your PIP extends to anyone injured in your vehicle.
Ask whether you can cover $5,000 to $10,000 in medical bills out of pocket while waiting for a liability claim to settle. If yes, and you have health insurance, rejecting PIP and reallocating that premium to higher liability limits or uninsured motorist coverage often provides better financial protection. If no, or if you lack health coverage, keep PIP.
How Much Does Personal Injury Protection Insurance Cost?
PIP adds approximately $8 to $18 per month to an Arizona auto policy, or $96 to $216 annually, depending on coverage limits and household income replacement needs.
- Coverage limit chosen — Arizona PIP policies range from $5,000 to $25,000 per person, with higher limits increasing premium.
- Household income level — lost wage replacement is calculated as a percentage of income, so higher earners see higher premiums for income protection.
- Deductible selection — choosing a $250 or $500 deductible reduces monthly cost but increases out-of-pocket expense per claim.
- Health insurance status — if you carry comprehensive health coverage, some carriers discount PIP since it acts as secondary coverage.
- Driving record — at-fault accidents in the past three years increase PIP cost because you're statistically more likely to file a first-party claim.