PIP is required in states that follow a no-fault law (everyone pays for their own accident-related damages, regardless of who was at fault). This coverage is similar to health insurance coverage. It will pay for your medical bills, including the bills of your passengers, up to the amount you have purchased. Drivers hosting a carpool on a regular basis will want to consider purchasing this option as it will help the passengers if involved in an accident and decrease the chances of them suing you for damages. PIP can be used in conjunction with a health insurance plan or on its own at most healthcare facilities. Pip also pays for lost wages while you are recuperating and healing from the accident wounds. Also, it will cover any pedestrians you hit and cover funeral expenses, up to the purchased amount.