Updated July 2026
What Is Personal Injury Protection Insurance?
PIP covers medical expenses, lost income, rehabilitation costs, and funeral expenses for you and your passengers after an accident, no matter who was at fault. In Colorado, carriers must offer PIP with every policy, and it remains active unless you explicitly reject it in writing. The coverage pays out immediately without waiting for fault determination, which speeds up access to medical care and wage replacement during recovery.
- You lose control on black ice and hit a guardrail. You break your wrist and miss three weeks of work. Your health insurance has a $5,000 deductible. PIP pays your emergency room bill, orthopedic follow-ups, and 80% of your lost wages up to your policy limit, typically without requiring you to meet a deductible first.
- You rear-end another car at a stoplight. Your passenger suffers whiplash and needs physical therapy. Even though you caused the accident, your PIP covers your passenger's medical bills up to your policy limit. The other driver's injuries are covered by your liability insurance, not your PIP.
- Another driver runs a red light and hits your car. You feel fine at the scene but develop severe back pain two days later. PIP pays for your diagnostic imaging and chiropractic care immediately, while the liability claim against the at-fault driver can take months to settle.
Who Needs Personal Injury Protection Insurance?
PIP makes sense if you don't carry health insurance, have a high-deductible health plan, work as a freelancer or contractor without paid sick leave, or frequently drive with passengers who lack health coverage. It's also valuable if you want immediate access to medical care and wage replacement without waiting for a liability settlement, which can take six months or longer.
Compare your health insurance deductible and out-of-pocket maximum against typical PIP limits. If your health plan's deductible exceeds $5,000 and you lack disability insurance, a $10,000 or $25,000 PIP policy fills the gap. If your health coverage is strong and you have three months of emergency savings, rejecting PIP and redirecting the premium toward higher liability limits often provides better financial protection.
How Much Does Personal Injury Protection Insurance Cost?
PIP typically adds $8 to $25 per month to your premium, or approximately $96 to $300 per year, depending on your coverage limit and deductible.
- Coverage limit selection — Colorado policies commonly offer $5,000, $10,000, $25,000, or $50,000 limits, with higher limits increasing the premium proportionally.
- Deductible choice — selecting a $500 or $1,000 deductible instead of $0 can reduce your PIP premium by 15% to 30%.
- Health insurance coverage — if you carry comprehensive health insurance with low out-of-pocket maximums, some carriers offer lower PIP rates since the health plan covers most expenses.
- Household size and driver count — policies covering multiple drivers or family members cost more because PIP extends to all listed drivers and their passengers.
- Claim history — prior PIP claims, especially multiple claims within three years, can increase your rate at renewal.
- Urban versus rural location — Denver-area policies average 20% to 35% higher PIP premiums than rural Colorado counties due to higher accident frequency and medical costs.