What is the purpose of extending PIP coverage to specific individuals?

Extending Personal Injury Protection (PIP) coverage to specific individuals primarily serves to include employees who do not have their own vehicles under the policy. This is significant because many businesses or employers may have employees who utilize company vehicles or are otherwise in need of coverage while performing job-related duties. By extending PIP to these individuals, it ensures that they receive necessary medical coverage and lost wages in the event of an accident, even if they aren't the policyholder or do not own their own cars.

This approach enhances workplace safety and encourages more individuals to participate in activities that may require traveling for work, knowing they have financial protection in case of an accident. It stands as a critical measure for businesses to safeguard their employees and reduce liability.

The other choices focus on different aspects of insurance coverage that do not align with the specific purpose of extending PIP. Protecting a vehicle from theft relates to comprehensive coverage rather than PIP, while reducing premiums is not directly connected to the purpose of PIP. Compliance with mandatory insurance laws is often broader and encompasses various types of coverage but does not specifically highlight the importance of including additional individuals under PIP.