Under the no-fault system, every person must buy personal injury protection or PIP insurance. PIP insurance covers a range of damages for a victim in a crash. The insurance also covers victims in your household anytime they’re in a collision, even if you’re not in the vehicle. Also, PIP insurance covers passengers in your vehicle if they don’t have their own insurance or coverage through a family member. PIP insurance applies without you having to prove the other side caused the accident. PIP insurance pays for qualified losses up to the policy limits.