Will Car Insurance Pay for Physical Therapy After an Accident?

Last Updated on December 25, 2025

Physical therapy is one of the most common (and expensive) parts of recovering from a car accident. The good news: auto insurance often can pay for physical therapy—but which policy pays (and how fast you get reimbursed) depends on your state, who was at fault, and what coverages you have.

Below is a clear breakdown of when car insurance covers PT, which coverage types apply, and what to do if the at-fault driver doesn’t have enough insurance.

Key Takeaways

• Car insurance often covers physical therapy after an accident, but payment depends on fault, state rules, and which coverages you have (PIP/MedPay, liability, UM/UIM, or health insurance).
• If the other driver is at fault, their bodily injury liability may pay your PT—but only up to their policy limits, and only for treatment the insurer considers reasonable and necessary.
• If you were at fault, your bodily injury liability doesn’t pay for your own injuries; your PT usually runs through PIP/MedPay (if you carry it) and/or health insurance.
• Keep strong documentation (referrals, PT notes, receipts) and be cautious with settlements—signing a release can cut off future payment even if you still need treatment.

Does car insurance cover physical therapy after an accident?

Often, yes—as long as the PT is medically necessary and related to injuries from the crash. Coverage usually comes from one of these buckets:

• Injury coverage on your own policy (like PIP or MedPay, depending on your state and policy)
• The at-fault driver’s bodily injury liability (if they caused the accident)
• Uninsured/underinsured motorist coverage (if the other driver has no insurance or not enough)

Even when coverage exists, insurers may still question the amount of treatment, require documentation, or cap payments at policy limits—so it helps to know what “lane” your claim should be in.

Who pays for physical therapy costs after a car accident?

In most states, PT costs ultimately fall on the at-fault driver—but the path to payment depends on the circumstances.

If the other driver was at fault

When the other driver caused the crash, their insurer should pay your PT as part of a bodily injury claim, up to that driver’s available coverage limits. (This process is often bundled with other treatment like ER visits, imaging, and follow-up care—see how car insurance pays for medical bills after an accident.)

If the other driver’s limits are low—or the insurer disputes how much care you need—you may be pushed toward a settlement. Before accepting anything, it’s smart to understand how to tell if your settlement offer is too low, because signing a release can cut off your ability to get more money later.

If you were at fault

If you caused the accident, the key detail is this: your bodily injury liability pays for other people’s injuries—not yours. (Learn more about what that coverage does here: what is bodily injury liability coverage?)

Your own PT would typically be paid through PIP/MedPay (if you have it), health insurance, or other first-party benefits—then you pay any remaining amounts out of pocket.

If fault is disputed

If both drivers blame each other, your best move is usually to run treatment through your first-party coverage (PIP/MedPay/health insurance) while fault gets sorted out. That prevents delays when you’re trying to start care.

What happens if the other driver has no insurance (or it was a hit-and-run)?

Uninsured drivers are still a real issue in the U.S. If the at-fault driver has no coverage, your recovery options often shift to your own policy—especially uninsured motorist coverage and/or PIP/MedPay—depending on what your state allows and what you purchased.

The same general approach applies after a hit and run: you typically lean on your own coverage first, then pursue other options if the driver is later identified.

You may also be able to pursue the at-fault driver directly, but collecting can be difficult. Here’s what that looks like in practice: can you sue an uninsured driver?

How to get your physical therapy paid (without headaches)

Physical therapy claims get “messy” when insurers think treatment is unnecessary, unrelated, or too long. These steps help keep things moving:

• Get a clear diagnosis and referral if possible (PCP, urgent care, orthopedist, etc.). Insurers are more comfortable with PT tied to documented injuries.
• Start care promptly and follow the plan. Gaps in treatment can lead to “you must be better” arguments.
• Keep every record: evaluation notes, progress notes, home exercise plan, discharge summary, and all bills/receipts.
• Track impact on daily life (work limitations, sleep, driving, lifting, childcare). These details matter in settlements.
• Ask billing questions early. Some PT offices bill PIP/MedPay directly; others bill health insurance first. If you’re unsure, ask what they need from the claim adjuster.

How much physical therapy will insurance cover?

Insurance generally only pays for PT that is reasonable and necessary, and it will only pay up to the available policy limits. Those limits can come from the at-fault driver’s coverage, your first-party medical coverage, or both.

If your bills approach the available limits, you may be asked to settle. That’s when it’s critical to understand your policy limits and your long-term needs (especially if you’re still treating). If you’re trying to figure out how much coverage is “enough” before anything happens, this can help: what auto insurance limits should I have?

If the insurance payout won’t cover everything, you may have to pay some costs yourself—similar to other accident-related expenses people sometimes handle personally. (Related context: when should you pay for repairs out of pocket?)

When to consider talking to an attorney

Not every PT claim needs a lawyer. But it can be worth getting legal advice if:

• The insurer disputes liability or says your injuries aren’t crash-related
• You’re being pushed into a quick settlement while you’re still treating
• Your medical bills and lost wages could exceed coverage limits
• You’re confused about what’s fair (or you’re getting lowball signals)

If you’re at that point, start here: when to hire an auto insurance lawyer. And if you’re negotiating yourself, this guide can help: how to negotiate an auto insurance settlement.

FAQs on Physical Therapy After a Car Accident

So, will car insurance pay for physical therapy?

Usually, yes—but the payment source varies. If the other driver caused the accident, their insurer may pay through liability coverage. If you need care quickly, you may use PIP/MedPay (if you have it) or health insurance first. And if the other driver is uninsured or doesn’t have enough coverage, UM/UIM and other first-party benefits can become essential. The most important factors are medical necessity, documentation, and policy limits.