Claims Adjuster Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Personal Injury Protection (PIP) is specifically designed to cover medical expenses and, in some cases, additional costs such as rehabilitation and lost wages, regardless of who is at fault in an auto accident. This type of insurance ensures that medical bills are paid for the insured and their passengers after an accident, promoting immediate health care access without the hassle of determining liability first.

In contrast, comprehensive insurance primarily covers damage to your vehicle from incidents other than collisions, such as theft or weather-related damage. Liability insurance is intended to cover the costs associated with damages or injury to other parties when you are at fault, but it does not cover your own medical bills. Collision insurance is focused on covering repairs to your vehicle resulting from a collision with another vehicle or object but does not address medical costs. Therefore, Personal Injury Protection stands out as the correct type of insurance for covering medical expenses arising from an at-fault auto accident.