In no fault 'PIP' coverage, which statement is true?

• A. It covers only pedestrians
• B. It covers the insured's medical bills, lost earnings, and certain out-of-pocket damages after a car accident
• C. It covers only property damage
• D. It is the same as liability coverage

Answer: (B)

In a no-fault auto concept, Personal Injury Protection (PIP) is meant to quickly provide for the injuries you sustain in a crash, without waiting to determine who was at fault. The benefits you receive under PIP include your medical bills, a portion of your lost wages from being unable to work, and certain out-of-pocket costs that arise from the injury (such as transportation to medical appointments or other necessary services).

This is why the statement that matches PIP is that it covers the insured’s medical bills, lost earnings, and those qualifying out-of-pocket damages after a car accident. It’s not about property damage, and it isn’t the same as liability coverage, which pays others’ injuries or damages you’re legally responsible for.