What type of auto insurance allows for optional Personal Injury Protection benefits?

The option that correctly identifies the type of auto insurance allowing for optional Personal Injury Protection (PIP) benefits is the category known as Modified No-Fault States. In these states, insurance laws permit drivers the option to select whether or not they want to include PIP coverage in their auto insurance policies. This means that policyholders can choose to obtain higher levels of personal injury protection than the minimum required, or they can opt out of it entirely depending on their personal preferences or financial considerations.

In contrast, the other states mentioned either mandate certain coverages or do not provide the flexibility seen in Modified No-Fault States. For instance, in a Choice No-Fault State, PIP is generally required but offers options concerning other coverages, while in Mandatory Coverage scenarios, certain insurance elements must be included by law, further restricting choices regarding personal injury protection. Add-On No-Fault States require PIP coverage but do not allow for the option to decline it, making them less flexible regarding this particular benefit.