Personal injury protection (PIP) is a type of insurance coverage that pays for your own injuries, bills, and damages after an auto accident. PIP insurance can cover your hospital bills and other medical expenses for both you and any of your passengers. If you struck a pedestrian, PIP insurance will also cover the pedestrian’s medical bills. PIP insurance will cover your medical costs regardless of whether you caused the accident. If a victim files a lawsuit against you after a crash, personal injury protection insurance will pay the damages, saving you from paying out of pocket.