PIP, in the event of an accident, pays for the medical expenses and other assorted damages incurred by the insurance holder and their passengers (or if the insurance holder is an injured pedestrian). If you live in a tort state, for example, and are involved in an accident that is not your fault, you have a choice to either let your insurance company fix it, or you can require the other driver's car insurance to handle the details, in effect freeing yourself from the hassle of having to report the accident to your insurance company and paying the deductible. The excess is the amount of money you lose if any accident takes place. This may be a comforting option, but it also removes you from the equation; if you're dealing with a slow insurance company you'll have a lot of waiting to do. Personal injury protection, sometimes known as Medical Payment Insurance or Medpay, is a no-fault insurance policies for a couple of reasons.

In no-fault states, insurance companies recover a policy-holder's financial losses whether he/she is at fault or not. The loose gravel can cause stone chips, windscreens often get chipped which you are liable for. Ask your regular passengers about their own health insurance policies and its coverage. By setting this limit, insurance companies are cutting down on the time and expense of un-necessary lawsuits and consumer greed.

New Zealand AtoZ provides useful New Zealand information to travelers, including a full list of all New Zealand car, motorhome and campervan rental companies along with their daily hire rates. These costs include medical bills, lost wages and other assorted expenses. Most rental companies charge from $9 to $50 per day to reduce your liability in an accident down to as low as $0.

Keith Understrom works in the insurance industry and runs a free insurance information website as an information resource. Ask your regular passengers about their own health insurance policies and its coverage. One time a personal injury protection policy might allow for a lawsuit is when serious injury or death occurs.

On the other hand, no-fault policies pay immediately (to an extent) and then work with the insurance companies that are involved to ensure that the correct party pays them back. This is especially true if you have a young family or if you constantly carry others in your automobile or other vehicle. Keith Understrom works in the insurance industry and runs a free insurance information website as an information resource. The bond is the amount of money (usually kept on a credit card slip or taken off your credit card and returned to you once the vehicle is brought back in the same condition it was rental to you in) that the rental company holds in case any accident takes place.

Although they are similar, there are some variations on how no-fault states deal with insurance issues as opposed to tort states. It could be that the cost of lost wages and medical bills may be recovered through an existing health insurance policy. Kentucky, New Jersey, and Pennsylvania use the choice no fault system.

In Florida, a driver is only required to carry coverage worth $10,000. PIP, in the event of an accident, will pay around 80% (depending on insurance policies limits) of the costs of the insurance holder and passengers. Florida, for example, is repealing their "no-fault" status in 2007, if legislation doesn't change before that time.