Short answer: PIP is on your auto policy and pays your medical bills, fault or no-fault, immediately. Bodily Injury Liability (BIL) is on the at-fault driver’s policy and pays a settlement at the end of treatment — pain and suffering, wage loss beyond PIP, medical bills exceeding PIP.
Both apply to the same crash. PIP first, BIL at the end.
PIP — Personal Injury Protection
Whose policy: yours.
What it pays: your medical bills, lost wages, essential services, child care, funeral expenses — all the categories under ORS 742.524.
When it pays: as you treat. Bills go from your provider to your PIP carrier, who pays them within ~30 days.
No-fault: PIP pays regardless of who caused the crash. Your fault, the other driver’s fault, hit-and-run — PIP applies the same way.
Minimum in Oregon: $15,000 in medical with a 2-year window, plus $3,000/month wage loss for 52 weeks, plus the smaller benefit categories.
Who’s covered: you, your resident relatives, your passengers, and pedestrians/cyclists struck by your vehicle.
BIL — Bodily Injury Liability
Whose policy: the at-fault driver’s.
What it pays: your eventual settlement. This includes pain and suffering, wage loss beyond PIP limits, medical bills that exceeded PIP, and the value of any long-term impairment.
When it pays: at settlement, after treatment is largely complete and the injury picture is clear. Typically several months to a year (or more) after the crash.
Fault required: BIL only applies if the other driver was legally at fault for the crash.
Minimum in Oregon: $25,000 per person / $50,000 per accident (ORS 806.070). Many drivers carry more — $100K/$300K or $250K/$500K is common.
Who’s covered: you and anyone else injured in the crash by the at-fault driver.
How they work together — the typical timeline
- Crash happens.
- Weeks 1-2: you open a PIP claim with your insurer. You start treatment. PIP pays as bills come in.
- Weeks 2-: active treatment. PIP pays. Your symptom diary and clinical records build up.
- End of treatment: your treating clinician confirms you’ve reached maximum medical improvement (or as close as you’ll get). PIP usage tallied.
- Settlement negotiation: your attorney (or you) opens a settlement discussion with the at-fault driver’s BIL carrier. The demand covers everything PIP didn’t fully address — pain and suffering, future medical risk, long-term impairment, wage loss beyond PIP, and any unreimbursed medical.
- Settlement: BIL pays a lump sum. Your insurer recovers their PIP payments from the at-fault carrier through subrogation (ORS 742.538) — separately from your settlement. You don’t repay PIP yourself.
When BIL falls short — and UM/UIM steps in
If the at-fault driver:
- Had no insurance → use your UM (Uninsured Motorist) coverage
- Had insurance but not enough to cover your damages → use your UIM (Underinsured Motorist) coverage
UM/UIM is also on your own policy, mandatory in Oregon, minimum $25K per person / $50K per accident. It functions like a stand-in for the at-fault driver’s missing BIL.
Common confusions
“My insurance company is paying my medical bills — why do I also need the other driver’s insurance?”
Because PIP only covers medical. The other driver’s BIL is what compensates you for pain and suffering, lost income, and impairment — non-medical damages. PIP isn’t a substitute for BIL; they cover different things.
“My PIP is exhausted. Now what?”
Treatment doesn’t stop. Funding shifts. The at-fault driver’s BIL becomes the source for ongoing medical (paid at settlement), or your UM/UIM if their BIL is exhausted or insufficient, or your health insurance.
“The other driver’s insurer wants me to sign a release for $3,000.”
That’s a BIL offer, and it’s almost always low when it comes in the first few weeks. The injury picture isn’t clear yet. Don’t sign anything that limits your future treatment or compensation until your treating clinician has confirmed maximum medical improvement.
“I caused the crash. Am I still covered?”
Yes, by PIP — it’s no-fault. The other driver’s BIL is not available to you (you didn’t cause damage to yourself in their eyes), but your own PIP still pays your medical bills under your own policy.
Practical takeaway
- For your medical care: PIP. It’s fast, it’s no-fault, your providers bill it directly.
- For your settlement: BIL (or UM/UIM if BIL is insufficient). It’s slower, it’s at the end, and an attorney usually handles it.
You don’t have to choose between them — they’re both active on the same crash.
How we handle both at Crash Care Clinics
We bill PIP directly. We don’t bill BIL directly — that’s a settlement process, not a billing process. But our records and reports are written knowing they’ll be reviewed by a BIL adjuster and possibly an attorney. Clean, complete documentation strengthens your eventual settlement.
If you want a clinic that handles auto-injury care under PIP and coordinates with attorneys on the BIL side, call (503) 567-2981.
Related guides
- Oregon PIP Insurance: The Complete Guide
- How Long Do I Have to File a PIP Claim?
- 8 Steps After a Car Accident in Oregon
This page is general information about Oregon auto insurance, not legal advice. For advice on your specific claim, consult an Oregon-licensed personal injury attorney.
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