Personal injury protection (PIP) is a type of no-fault insurance in which cover is provided if a third party or passengers in the car get injured. A no-fault insurance is one in which, as the name suggests, there are people who get injured and are at no fault. This means that a pedestrian who gets injured due to your mistake  does not have to bear any medical expenses and neither do you. The insurance company pays for such expenses incurred due to no apparent fault of anyone.

• The need for such type of insurance arises due to the fact that more people have died in road accidents in the industrial era compared to all the wars put together. The increasing population and density of traffic has forced many countries to codify such policies into laws. In the United States Florida, New York, New Jersey, Pennsylvania, Michigan, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, Utah, and North Dakota have made it compulsory for residents to have a Personal Injury Protection.
• What makes PIP different from other types of auto coverage is that it may also help pay for dental expenses, lost wages, medical expenses, home upkeep expenses and funeral expenses in case of bodily injury. In some cases the PIP covers 80% of the medical costs incurred by the passengers or driver or an aggrieved third party.
• People who already have health insurance may wonder why they would require such a type of insurance when they are covered. The simple fact is that any third party or passengers who are not covered can benefit from such insurance. Moreover the probability of the case being dragged into court becomes less if the aggrieved entity is properly compensated.
• The best example would be a family traveling in a car that meets with an accident and slams into a house injuring a resident. If the only person to have health insurance is the driver then the sudden burden of medical expenses cannot be borne by the family members or the resident. Therefore it is very important to think about opting for such insurance.
• It’s advisable to talk to your insurance agent about whether or not to obtain a PIP if you live in a locality or country that has not made it mandatory. In addition to such insurance it is also financial prudence to take liability insurance in case you are sued by someone who gets seriously injured because of an accident caused due to your vehicle.

If you have any additional points about PIP, feel free to leave a comment.