Quick answer: PIP (personal injury protection) is no-fault coverage on your Maryland auto policy. It pays your medical bills and 85% of your lost wages after a crash regardless of who caused it, up to at least $2,500. Every Maryland policy includes it unless the named insured waives it in writing, and using it can’t raise your rates or reduce what you collect from the at-fault driver.
I’m David Waranch, a Maryland car accident and personal injury lawyer, and I’ve helped thousands of people sort out claims after a collision. PIP is one of the most valuable and most misunderstood pieces of a Maryland policy. Here’s how it works and why you should think hard before ever giving it up.
What is PIP insurance in Maryland?
PIP is first-party, no-fault coverage. “First-party” means it pays you and the people in your car from your own policy, not the other driver’s. “No-fault” means it pays whether the crash was your fault, the other driver’s, or nobody’s. Under Md. Code, Ins. § 19-505, every motor vehicle liability policy sold in Maryland has to include these medical, hospital, and disability benefits unless the named insured waives them.
Because it pays without arguing over fault, PIP is fast money when you need it most: in the weeks right after a crash, before any liability claim is settled. It sits alongside your other required Maryland coverages and does a different job than your liability or uninsured/underinsured motorist coverage.
What does Maryland PIP cover, and who?
PIP covers reasonable medical expenses, a portion of lost income, and, for someone who wasn’t working, the cost of essential household services they can no longer perform. All of it has to arise from the accident and be incurred within three years of it.
| What PIP pays for | Detail |
|---|---|
| Medical & hospital bills | Reasonable, necessary expenses from the crash: ambulance, hospital, doctors, dental, nursing, surgery, X-rays, prosthetics, and even funeral costs |
| Lost wages | 85% of income lost by someone who was earning when the crash happened |
| Essential services | Reasonable cost of household tasks an injured non-earner can no longer do |
The people it protects are broad. PIP covers you and the family members who live with you, anyone driving your car with permission, your passengers and guests, and even a pedestrian your car hits. That last point surprises people: if you strike a pedestrian, your PIP can pay their medical bills too.
How much PIP coverage do I have?
The statutory minimum is $2,500 per person. That’s the floor Maryland guarantees on every policy that hasn’t been waived. Many insurers sell higher limits, commonly $5,000 or $10,000, for a modest premium bump. If you’re not sure what you carry, check your declarations page or ask your agent, because the difference matters after a serious injury.
“The minimum medical, hospital, and disability benefits provided by an insurer under this section shall include up to $2,500 for … payment of benefits for 85% of income lost.” — Md. Code, Ins. § 19-505(b)(2)
Don’t waive PIP to save a few dollars. PIP pays regardless of fault, stacks on top of your health insurance, and by law cannot raise your premium. Dropping it to shave a small amount off your bill trades away guaranteed cash the moment you’re hurt. If you already signed a waiver, you can withdraw it in writing and get the coverage back.
Can I waive PIP in Maryland?
Yes, but only the first named insured can do it, and only by an affirmative written waiver on the form the Insurance Commissioner requires. If you never sign that form, Md. Code, Ins. § 19-506 says the insurer must give you the coverage. Silence is not a waiver.
A waiver reaches further than most people expect. It binds every named insured, every listed driver, and every family member in your household who is at least 16 years old. So if you waive PIP, your teenage driver loses it too. There’s a narrow exception: a listed driver or a covered family member who is the first named insured on their own separate policy, and hasn’t waived PIP there, can still recover under that other policy. Before any waiver takes effect, the insurer has to give you written notice of the nature, extent, and cost of the coverage you’re giving up.
Does using PIP raise my rates or reduce my injury claim?
No on both counts, and this is where PIP is genuinely a free lunch. Under Md. Code, Ins. § 19-507, an insurer may not increase your premium because you made a PIP claim or received a PIP payment, and it has to tell you that in writing when it issues the policy. Your rates are safe.
“The benefits described in § 19-505 of this subtitle shall be payable without regard to … the fault or nonfault of the named insured … and any collateral source of medical, hospital, or wage continuation benefits.” — Md. Code, Ins. § 19-507(a)
PIP also pays on top of other sources. If your health insurance already covered a hospital bill, or your employer kept paying your salary, you can still collect PIP for those same items. And collecting PIP does not shrink your case against the at-fault driver. Maryland’s collateral source rule keeps money you received from your own coverage out of evidence, so a jury deciding what the other driver owes you never hears about it. The insurer that pays your PIP also has no right of subrogation, meaning it can’t chase the at-fault driver to claw the money back.
How does PIP work after a crash?
Notify your own insurer promptly and open a PIP claim, even if the other driver was clearly at fault. You’ll submit your medical bills and, for a wage claim, proof from your employer of what you earn and what you lost; the insurer can ask for reasonable medical proof that the injury caused the missed work. Keep every bill, receipt, and pay stub. Because expenses only count if they’re incurred within three years of the accident, don’t sit on it.
PIP is a piece of a bigger picture. It gets you fast cash for bills and wages while your injury claim against the at-fault driver plays out separately. If you’re just getting started, my steps to take after a Maryland car accident walk you through the first moves, and be aware that a filing deadline applies to the larger case. If the other driver had no coverage, that’s an insurance and hit-and-run problem worth talking through. Have a question about your PIP or your accident case? I’m here to help.
The statutory minimum is $2,500 per person. Every Maryland auto policy includes it unless the first named insured signs an affirmative written waiver, and insurers commonly offer higher limits such as $5,000 or $10,000.
No. Under Md. Code, Ins. § 19-507, an insurer may not increase your premium because you made a PIP claim or received a PIP payment, and it must tell you so in writing when the policy is issued.
Yes. PIP pays regardless of other coverage, so you can collect it even if your health insurer or employer already paid. Collecting PIP also does not reduce what you can recover from the at-fault driver.
Law Offices of David R. Waranch — 301-563-9575 · toll-free 1-877-566-2408. Hablamos Español.
Last updated: August 2026. Statutory references: Md. Code, Insurance §§ 19-505, 19-506, 19-507. This page is general information about Maryland law, not legal advice, and reading it does not create an attorney-client relationship.