Which type of auto coverage covers 80% of reasonable medical expenses, 60% of lost wages and replacement services, and 5,000% for death benefits?

Which type of auto coverage covers 80% of reasonable medical expenses, 60% of lost wages and replacement services, and 5,000% for death benefits?

• A. Personal Injury Protection
• B. Property Damage Liability
• C. Collision Coverage
• D. Uninsured Motorist

Answer: (A)

Personal Injury Protection is the no-fault coverage that handles you and your passengers’ medical needs after an accident, plus related income and support costs, regardless of whose fault it was. It commonly pays a large share of medical expenses (around 80%), a portion of lost wages and replacement services (about 60%), and a fixed death benefit up to the policy limit. The death benefit is typically a set dollar amount, not a percentage, which reflects the purpose of PIP to provide essential, rapid financial support after a crash. This is why it best fits the scenario described: the structure explicitly includes medical expense coverage, wage replacement, and a death benefit, all through a single no-fault protection. Other coverages don’t match this idea. Property Damage Liability handles damage to others’ property, not bodily injuries. Collision pays for damage to your own vehicle from a collision, not medical costs or wage loss. Uninsured Motorist covers injuries when the other driver has no or insufficient insurance, but it’s not defined by the standard medical-expense and wage-replacement percentages plus a death benefit.

Personal Injury Protection is the no-fault coverage that handles you and your passengers’ medical needs after an accident, plus related income and support costs, regardless of whose fault it was. It commonly pays a large share of medical expenses (around 80%), a portion of lost wages and replacement services (about 60%), and a fixed death benefit up to the policy limit. The death benefit is typically a set dollar amount, not a percentage, which reflects the purpose of PIP to provide essential, rapid financial support after a crash.

This is why it best fits the scenario described: the structure explicitly includes medical expense coverage, wage replacement, and a death benefit, all through a single no-fault protection. Other coverages don’t match this idea. Property Damage Liability handles damage to others’ property, not bodily injuries. Collision pays for damage to your own vehicle from a collision, not medical costs or wage loss. Uninsured Motorist covers injuries when the other driver has no or insufficient insurance, but it’s not defined by the standard medical-expense and wage-replacement percentages plus a death benefit.