What is the purpose of extending PIP coverage?

The purpose of extending Personal Injury Protection (PIP) coverage is fundamentally to fill percentage gaps in insurance coverage related to medical costs and other accident-related expenses. PIP is designed to provide immediate medical benefits to insured individuals, regardless of fault in an accident, thereby ensuring that medical expenses are covered promptly.

By extending this coverage, policyholders can enhance their financial protection by covering a higher percentage of medical bills that may not be fully covered under the standard PIP limits. This is particularly valuable in situations where medical costs exceed the basic PIP benefits, enabling insured individuals to better manage the financial impact of injuries sustained in an automobile accident.

While other measures like limiting liability or eliminating deductibles may seem relevant, they do not address the primary function of PIP extension, which is to provide more comprehensive coverage for medical expenses. Similarly, increasing premiums is not the purpose of extending PIP coverage; rather, it is a potential result of enhanced coverage levels but not a primary goal.