What does Personal Injury Protection (PIP) pay without recourse?

Personal Injury Protection (PIP) is an auto insurance coverage that provides benefits to the policyholder and their passengers, typically covering medical expenses, lost wages, and other related expenses following an accident, regardless of who is at fault. The key aspect of PIP is that it pays out benefits without requiring the insured to prove fault.

The correct answer relates to the concept of policy limits, which delineate the maximum amount an insurance company will pay for covered expenses under a PIP policy. This means that PIP can cover various costs, but its payments are ultimately capped at the policy limit specified in the insurance contract. Thus, understanding that PIP pays out benefits up to this policy limit is crucial to recognize how insurance payouts are structured.

While medical expenses, property damage, and lost wages are components that PIP can cover, the term "without recourse" refers specifically to the limitation of paying up to the designated policy limit rather than addressing specific expense categories.