Personal injury protection pays the insured's medical expenses, lost income, and related costs after an auto accident without regard to fault. Coverage is mandatory in no-fault states and optional in others.
No-fault statutes typically restrict tort claims below a defined threshold.
Alternative Names:
Personal Injury Protection, No-Fault Coverage
Why it Matters?
In no-fault states the tort threshold determines whether a bodily injury claim can proceed at all, requiring either a monetary threshold in medical expenses or a verbal threshold describing a serious injury. That threshold analysis is the first defense inquiry in those jurisdictions. PIP payments also create subrogation and coordination-of-benefits questions that affect the recoverable medical specials.
Frequently Confused with
Related terms
Frequently asked questions
What is a tort threshold?
How does PIP differ from med pay?
