What is the purpose of extending PIP coverage?

The purpose of extending Personal Injury Protection (PIP) coverage is to fill percentage gaps in coverage, which aligns with option A. By extending PIP, a policyholder can ensure that they are adequately protected in the event of an accident, particularly when medical expenses exceed the state-mandated minimum limits or when other liability coverages are insufficient. This extension helps to cover additional medical expenses that may arise due to the injuries sustained in an auto accident.

When PIP coverage is extended, it becomes more comprehensive, addressing potential shortfalls in healthcare costs that could arise from various scenarios, such as more severe injuries or longer recovery times. This can provide peace of mind for the policyholder, knowing that they have additional financial protection in place.

In contrast, the other options do not accurately reflect the primary motivation behind extending PIP coverage. Limiting liability pertains more to managing exposure to risk rather than filling coverage gaps. Eliminating deductibles does not directly relate to the purpose of extending coverage; it would be a feature of specific policies rather than a primary goal. Similarly, increasing premiums is often a consequence of extending coverage rather than its purpose, making it a secondary consideration for policyholders.