Medical Payment Insurance covers doctor and hospital bills. It will also provide for the expenses of a funeral if necessary for you and your passengers, regardless of who is at fault. This coverage is active even if you are driving someone else's car with the owner's permission. It will also cover you and your family if you are pedestrians and involved in an accident. The coverage itself is relatively inexpensive and generally available with limits between $1,000 and $100,000.

       No-fault refers to an insurance concept with two main objectives. First, it speeds payments to accident victims and it also lowers the cost of auto insurance by reducing the number of lawsuits for minor claims. By lowering the cost of litigation, a greater portion of each premium can be directed toward paying victims for their losses. To accomplish this theory, each insured's own insurance company pays medical expenses, lost wages, and certain other financial losses resulting from an accident regardless of who caused it. As a result more accident victims are compensated for their injuries in a shorter period of time. In exchange for these benefits, no-fult laws limit and insured's right to sue. However, no-fault laws generally allow policyholders or their families to sue in cases of death or serious disability.

        Before you buy medical payments or no-fault protection, find out exactly what it covers in your state. Then look closely at other insurance you might have. If you already have good medical and disability insurance, you may not need much additional protection. Be careful not to waste money duplicating insurance coverages. Your insurance agent can help you determine what coverages and limits you need.

        Personal Injury Protection (PIP) implements the no-fault concept. States that have no-fault laws require drivers to buy PIP. This is first-party coverage in a broader form than the medical payments insurance. It covers lost wages, medical care, and the cost to replace services normally performed by the person injured in an accident. This coverage varies from state to state and similar coverage may be offered as an option in states without no-fault laws.