It is important to understand your car insurance policy. If you have PIP or Personal Injury Protection, it pays for your medical bills in the event of a car accident. Your PIP limits should be as high as you can afford. There is another option called the Health Insurance Primary Option where your health insurance pays your medical bills first. Your policy will have UM/UIM which stands for Uninsured Motorist and Under-Insured Motorist protection. This protects you in the event that you get into a car accident caused by someone else and the other person does not have adequate liability coverage.