What does personal injury protection (PIP) cover in auto insurance?

Personal injury protection (PIP) is a crucial component of auto insurance designed to cover a range of expenses following an automobile accident, primarily focused on the well-being of those involved in the vehicle. This coverage includes medical expenses related to the treatment of injuries sustained by the policyholder and passengers, regardless of who was at fault in the accident. Additionally, PIP can also provide compensation for lost wages if the injured party is unable to work due to their injuries.

The focus of PIP on medical expenses and lost wages highlights its role as a safety net for individuals involved in an accident, ensuring that they receive necessary medical attention and financial support during recovery. This coverage is especially important in no-fault states, where liability is not a factor in determining compensation for injuries.

In contrast to other options, the scope of PIP is specifically tailored to health-related financial losses rather than addressing property damage, theft, or legal disputes, making it a distinct category within auto insurance policies.