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

Personal Injury Protection (PIP) in auto insurance is a type of coverage designed to cover medical expenses and lost wages for the policyholder and their passengers, regardless of who is at fault for an accident. This means that if you are injured in an accident, your insurance will assist with the costs for medical treatment and may also compensate you for lost income due to your inability to work following the incident. This feature makes PIP a crucial part of many personal auto insurance policies, especially in states that require or heavily encourage no-fault insurance systems.

The focus of PIP is on providing immediate financial support for medical and related costs, emphasizing the welfare of the insured and their passengers. It is particularly beneficial in situations where determining fault may delay compensation for injuries or medical bills, ensuring that those affected receive necessary healthcare without financial burden.