What does personal injury protection (PIP) cover?

Personal Injury Protection (PIP) is designed to cover medical expenses and possibly other related costs incurred by the insured and their passengers as a result of an automobile accident, regardless of who is at fault in the incident. This means that if someone is injured in a car accident, PIP helps pay for their medical bills, rehabilitation costs, and possibly lost wages resulting from the injury, ensuring that individuals receive timely medical attention without the burden of determining fault.

The coverage under PIP is particularly beneficial in no-fault insurance states, where it is a mandated component to provide immediate coverage for medical expenses. Since PIP covers medical expenses regardless of fault, it removes the complexities and delays often involved in settling fault-related claims, allowing for quicker recovery and financial support for those injured in an accident.

Other choices do not adequately capture the primary function of PIP. For instance, it does not exclusively cover expenses for the insured driver, nor does it include repair costs for damaged vehicles or liabilities for third-party injuries, as those are typically covered under different parts of an auto insurance policy, such as collision coverage or liability insurance.