PIP, or Personal Injury Protection, is important because it allows for a motorist to receive coverage from his or her auto insurance company for medical bills in the event of an accident. PIP applies regardless of who caused the crash, which is why it is also referred to as a no-fault insurance benefit. An individual may receive compensation for medical bills or even lost wages, depending on the circumstances, if his or her injury relates to the operation of a motor vehicle. The person does not have to be in the vehicle to qualify for this type of coverage.