What is "personal injury protection (PIP)" in auto insurance?

Personal injury protection (PIP) is designed to provide coverage for medical expenses and lost wages incurred as a result of auto accidents, regardless of who was at fault. This type of coverage ensures that policyholders and their passengers receive immediate financial support for necessary medical treatment, rehabilitation, and sometimes even funeral expenses, in the event of a serious accident.

PIP is particularly beneficial because it can help cover costs without the need to seek compensation from another party, allowing for quicker access to funds during a time when medical bills and lost income may create financial strain. This coverage is part of a broader category known as no-fault insurance, which seeks to simplify the claims process and reduce disputes over fault in accidents.

Considering how essential it is for motorists to have coverage that addresses their medical and income concerns, PIP plays a crucial role in comprehensive auto insurance policies.