Updated July 2026
What Is Personal Injury Protection Insurance?
Personal Injury Protection pays your medical expenses, lost income, and essential services costs after a car accident, whether you caused the crash or not. 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. It bridges the gap between the accident and your health insurance deductible, and it covers expenses health insurance won't touch: funeral costs, childcare while you recover, and household services you can't perform due to injuries.
- The other driver is clearly at fault, but their liability claim takes three weeks to process. You have a concussion and miss two weeks of work. Your PIP policy pays your emergency room bill and replaces 80% of your lost wages within five days of filing. Without PIP, you'd wait for the at-fault driver's insurer to accept liability, then reimburse you — a process that can stretch 30 to 60 days.
- You're at fault. Your passenger breaks their wrist. Your liability coverage pays the other drivers' medical bills, but it doesn't cover your passenger. Your PIP policy pays your passenger's orthopedic bills and physical therapy immediately, without requiring them to sue you or file a third-party claim against your liability policy.
- You slide into a guardrail. No other cars involved. You fracture your collarbone and can't work for six weeks. Your health insurance has a $3,000 deductible. PIP pays your medical bills from dollar one, covers 80% of your lost income, and reimburses the home health aide you hire to help with childcare while your arm is immobilized.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you have a high-deductible health plan, no health insurance, or a job where missing work creates immediate financial strain. It's also valuable for drivers who regularly transport passengers — family members, carpool riders, or coworkers — because PIP covers everyone in your vehicle without requiring them to file claims against your liability policy.
Compare your health insurance deductible to the cost of a year of PIP. If your deductible is $3,000 and PIP costs $180 annually, you're paying for six years of PIP to cover one deductible. But if you have no health coverage or a $6,000 deductible, PIP pays for itself the first time you need it. The decision turns on whether you value speed of payment and coverage for non-medical expenses like lost wages and childcare.
How Much Does Personal Injury Protection Insurance Cost?
PIP adds approximately $8 to $25 per month to a Montana auto insurance policy, or $96 to $300 annually, depending on coverage limits and household size.
- Coverage limit — policies range from $5,000 to $100,000 per person, with higher limits increasing premiums proportionally.
- Household size — PIP covers all passengers in your vehicle, so insurers price policies higher for drivers with multiple household members who regularly ride along.
- Deductible selection — choosing a $500 or $1,000 PIP deductible can reduce premiums by 15% to 25% compared to zero-deductible policies.
- Stacking election — some carriers let you stack PIP limits across multiple vehicles on the same policy, which doubles or triples the available coverage but raises the premium accordingly.
- Health insurance status — drivers without health coverage or with high-deductible health plans typically pay slightly more for PIP because insurers expect higher utilization.
- Zip code and commute distance — urban Montana drivers with longer commutes face higher PIP premiums due to increased accident exposure.