Texas All Lines Adjuster Practice Test

What type of damages does Personal Injury Protection (PIP) cover?

1. Property damages caused by an accident

2. Legal costs associated with personal injury claims

3. Medical expenses from auto-related injuries

4. Compensation for lost wages

The correct answer is: Medical expenses from auto-related injuries

Personal Injury Protection (PIP) is a component of auto insurance that provides coverage for medical expenses resulting from injuries sustained in an automobile accident, regardless of who is at fault. This means that if you are injured in a car accident, PIP can help cover medical bills for treatments such as hospital visits, surgeries, and rehabilitation. While PIP can also extend to certain other costs related to injuries, the primary focus is indeed on medical expenses. This is a critical aspect of PIP as it ensures that individuals can receive necessary medical attention without the immediate concern for out-of-pocket costs or the time it might take for fault to be determined in an accident. The other options, while they may relate to various aspects of automobile insurance and claims, do not fall under the PIP coverage. Property damages refer to damage to vehicles or other property resulting from an accident, which is covered by different types of insurance like liability or collision coverage. Legal costs pertain to expenses incurred during a legal process, which are typically not covered by PIP. Lastly, compensation for lost wages is also distinct, usually falling under different coverage or disability benefits. Thus, the correct response focuses on the core function of PIP in addressing medical expenses from auto-related injuries.