Most PIP insurance packages are offered on a no fault basis. No fault means that you will get compensated whether you were the one at fault or not. Most people confuse the no fault PIP cover with the no fault dynamics that are used in personal car insurance policies. In several auto insurance companies, the term no fault is used to describe what may happen after a claim and how it will affect your insurance premium. In such instances when the insurance companies use the term no fault, it means that your insurance rates will remain the same. However, this is not often the case in PIP covers.