Many auto policies include a form of medical and wage coverage called personal injury protection coverage, or PIP. This coverage is available to the insured driver and any passengers in the insured’s vehicle for injuries sustained, regardless of who is at fault for the accident. PIP coverage pays 100% of the medical expenses, plus 80% of lost earnings, up to the amount of the PIP coverage limits. These limits are usually in amounts of $2,500, $5,000, or $10,000. PIP benefits do not have to be repaid if the adverse driver’s insurance pays damages.
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