2.  Personal Injury Protection (PIP)

pays up to $8,000 to you or anyone you let drive your car, anyone living in your household, passengers and pedestrians, no matter who causes the accident. Personal Injury Protection pays for medical expenses, replacement services and 75% of any lost wages. Your PIP coverage pays for medical expenses in excess of $2,000 that are not paid for by your medical insurance only after these expenses have been submitted to the medical insurer to determine what it will and will not pay. Your PIP coverage will not pay for expenses over $2,000 that your medical insurer would have paid if the injured person had sought treatment in accordance with the terms of your health plan. Your health insurance may not cover all of your medical expenses from an auto accident such as cosmetic and dental services, co-payments and deductibles. Also, your disability policy may have long waiting periods. The small savings from the larger deductible may not be worth it. The driver and passengers, while riding a motorcycle, are not covered by PIP. However, the owner of the motorcycle must purchase this coverage to protect other people who may be injured by the motorcycle. You can save on your premium by excluding yourself, or yourself and household members, from some or all of this coverage. You should consider this option if you have a medical and disability income plan. The portion of each claim you have agreed not to be covered for is called a "deductible."

Note: PIP covers owners of cars and motor-cycles, and members of their households, if they are injured while occupying or struck by a car that does not have Massachusetts Compulsory Insurance.

Source: Massachusetts Department of Insurance