In a no-fault state, what are drivers required to carry for their protection?

Prepare for the Certified Insurance Counselor (CIC) exam. Master commercial casualty insurance concepts with flashcards and multiple choice questions. Elevate your confidence and readiness for success!

In a no-fault state, drivers are required to carry Personal Injury Protection (PIP) coverage for their protection. This type of insurance is designed to cover medical expenses, lost wages, and other related costs that arise from an automobile accident, regardless of who is at fault. The primary goal of PIP coverage is to provide immediate assistance to injured parties without needing to determine liability, thus streamlining the claims process and reducing legal disputes.

Liability insurance, while important, primarily protects against claims for bodily injury or property damage that a driver causes to others. Comprehensive coverage deals with non-collision events such as theft, vandalism, or natural disasters, whereas collision coverage specifically addresses damages to a vehicle resulting from a collision with another vehicle or object. Neither comprehensive nor collision coverage fulfills the requirements of protection in a no-fault state, as they do not cover the medical expenses and other personal costs incurred by the driver or passengers in the event of an accident.

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