If a policy includes PIP, which statement best describes its coverage for medical expenses and lost wages?

If a policy includes PIP, which statement best describes its coverage for medical expenses and lost wages?

• A. Only medical expenses are covered
• B. Only lost wages are covered
• C. Both medical expenses and lost wages are covered within their limits
• D. Neither medical expenses nor lost wages are covered

Answer: (C)

PIP is no-fault auto coverage that pays benefits for injuries from a crash, regardless of who is at fault. It covers two main categories: medical expenses and lost wages, up to the policy limits. Because PIP is designed to reimburse both medical costs and income loss, the description that both medical expenses and lost wages are covered within their limits is the best fit. In practice, these benefits are intended to help with medical bills and income replacement after an accident, subject to deductibles and the policy’s limits. The other options imply coverage for only one category or for neither, which doesn’t reflect how PIP works.

PIP is no-fault auto coverage that pays benefits for injuries from a crash, regardless of who is at fault. It covers two main categories: medical expenses and lost wages, up to the policy limits. Because PIP is designed to reimburse both medical costs and income loss, the description that both medical expenses and lost wages are covered within their limits is the best fit. In practice, these benefits are intended to help with medical bills and income replacement after an accident, subject to deductibles and the policy’s limits. The other options imply coverage for only one category or for neither, which doesn’t reflect how PIP works.