Personal Injury Protection (PIP), often referred to as “no-fault” coverage, is a component of auto insurance policies that provides coverage for medical expenses, lost wages, and, in some cases, funeral costs for the policyholder and passengers in the event of an accident, regardless of who is at fault. PIP is designed to be paid out quickly to cover immediate medical costs and other related expenses without the need to establish fault, which can often be a lengthy and complicated process.
PIP coverage is mandatory in some states and optional in others, and the specifics of what is covered can vary widely from one jurisdiction to another. In addition to medical expenses and lost income, PIP can also cover services like childcare or household maintenance that the injured party may be unable to perform due to their injuries. It is important for policyholders to understand the details of their PIP coverage, including any limitations or exclusions that may apply, as well as the required minimum coverage amounts in states where PIP is mandatory.