Personal Injury Protection (PIP), or “no-fault insurance,” is a type of auto insurance coverage that pays for your or your passengers' medical expenses regardless of who is at fault in an accident. This coverage is mandatory in some states and optional in others.
PIP insurance can include medical expenses, lost wages, and other damages. It is designed to reduce the necessity of suing other drivers for the costs of minor injuries. However, it does not cover damages to your vehicle; that would fall under collision coverage.
Types of coverage offered by PIP can vary by state and by policy, but generally, it can cover the following:
1. Medical expenses: This can include hospital bills, medical care, medication, surgery, and rehabilitation costs. Some policies may also cover alternative treatments, such as acupuncture or chiropractic care.
2. Lost wages: If your injuries prevent you from working, PIP can help compensate for your lost income.
3. Funeral expenses: In the unfortunate event of a fatal accident, PIP can help cover funeral and burial costs.
4. Rehabilitation services: If you need physical therapy or other rehabilitation due to your accident, PIP can cover these costs.
5. Substitute services: If your injuries prevent you from performing tasks like house cleaning or lawn maintenance, PIP may cover the cost of hiring someone to do these tasks for you.
It’s important to note that PIP coverage has limits, which are the maximum amounts your insurance company will pay for a covered claim. These limits are set when you purchase your policy. If the costs exceed your PIP limits, you would be responsible for paying them unless you have other insurance covering them.