What is an example of no-fault coverage in auto insurance?

Personal Injury Protection (PIP) is an example of no-fault coverage in auto insurance because it provides benefits to insured individuals regardless of who is at fault in an accident. This coverage typically pays for medical expenses, lost wages, and other related costs that arise from auto accidents, allowing policyholders to quickly receive assistance without needing to prove fault.

No-fault insurance is designed to reduce the time and expense associated with determining liability following an accident. This approach emphasizes prompt medical care and financial support to the injured parties. PIP plays a significant role in this system by offering these services without the need for litigation or fault assessment.

Liability coverage, while essential, is concerned with providing protection against claims from other drivers for injuries or damages for which the insured is found responsible. Collision coverage specifically deals with damage to the insured's own vehicle resulting from accidents, primarily reimbursing for repairs or replacement. Comprehensive coverage protects against non-collision-related incidents, such as theft or natural disasters, but does not provide payment for injuries or lost wages. None of these options function under the no-fault principle, which is why Personal Injury Protection is the correct example.