What percentage of lost income does Personal Injury Protection (PIP) cover?

What percentage of lost income does Personal Injury Protection (PIP) cover?

• A. 80%
• B. 60%
• C. 100%
• D. 50%

Answer: (A)

Personal Injury Protection is meant to replace a portion of your income when an auto accident keeps you from working. The standard benefit for lost wages is 80% of your earned income, so you receive most of what you would have made while you heal, subject to policy limits. The idea is to provide substantial wage replacement without guaranteeing full income, which is why options like 60% or 50% would under-reimburse and 100% would overstate typical coverage. Always check the specific policy, since limits and deductibles can affect the actual amount.

Personal Injury Protection is meant to replace a portion of your income when an auto accident keeps you from working. The standard benefit for lost wages is 80% of your earned income, so you receive most of what you would have made while you heal, subject to policy limits. The idea is to provide substantial wage replacement without guaranteeing full income, which is why options like 60% or 50% would under-reimburse and 100% would overstate typical coverage. Always check the specific policy, since limits and deductibles can affect the actual amount.