Q: I'm confused about the different types of coverage listed on my automobile insurance policy -- what exactly is BI, UM and PIP (No-fault) coverage?
BI stands for “bodily injury.” This type of coverage will pay claims for injuries you negligently cause to another person as a result of the use of your car. New York state law requires that every driver to carry insurance for bodily injury with policy limits of at least $25,000. UM/UIM stands for “uninsured motorist” or “underinsured motorist” coverage. If you are injured by a negligent driver who does not have liability insurance (or inadequate liability insurance), you may make a claim against your own insurance carrier if you have UM coverage. When you make a UM claim, your insurance carrier "stands in the shoes" of the negligent driver and is permitted to assert all defenses that this driver may have had against you (e.g., failure to wear a seat belt, failing to yield, etc.). PIP stands for “personal injury protection.” PIP, more commonly know as No-Fault in New York, pays for your reasonable and necessary medical expenses, as well as lost wages, regardless of who is at fault for the collision. PIP is included by law in every policy of automobile insurance written in the State of New York.