These coverages both pay for your and your passengers’ medical expenses regardless of who was at fault. But PIP typically provides additional coverage that pays for things like lost wages, funeral expenses and other losses. PIP generally also offers higher coverage limits than medical payments coverage does, but can have a deductible associated with it. Neither type of coverage pays for vehicle damage—that would be covered by the party that caused the accident or by your own collision coverage.
PIP is not available in all states; in some states it is required.
Some experts advise forgoing medical payments coverage if you have good health insurance that would cover your medical bills. If PIP is required in your state, you must purchase it. If it’s optional, and you have good health insurance, you would have to decide if the other potential benefits of the coverage (funeral expenses, lost wages, etc.) are worth the cost.