Personal Injury Protection (PIP) is an optional insurance coverage that Texas drivers can purchase along with auto liability insurance. PIP provides coverage when injuries are sustained by the insured driver and passengers in the driver’s vehicle.
PIP is designed to provide immediate financial assistance to persons injured in an accident. The coverage applies regardless of who is at fault and without any deductible. PIP limits are generally not very high which keeps a minimum amount of coverage affordable for most drivers.
Texas requires insurance companies to offer a minimum amount of PIP coverage with every auto insurance quote, but drivers are not required to purchase it. The following discussion will help drivers understand PIP coverage in relation to other applicable insurance and decide whether to add PIP to their auto insurance policy.
What the Texas Insurance Code Says About PIP
Texas law says personal injury protection describes the provisions in an auto liability insurance policy that authorize the payment of all reasonable expenses:
- Related to an accident
- Incurred within 3 years from the date of the accident
- For necessary medical, dental, or funeral services
- To replace lost income
- To provide essential services to a family household
The coverage extends to the policy’s named insured, members of the insured’s household, other authorized operators of the insured vehicle, and passengers in the vehicle.
Insurance companies writing auto liability in Texas are required to offer a PIP aggregate benefit of at least $2,500 per person. A driver who does not wish to purchase the coverage must reject the offer in writing.
Typical PIP Coverage Limits
Though only $2,500 of PIP must be offered by insurance companies in Texas, many are willing to offer higher limits, and PIP coverage of $5,000 or $10,000 per person is not uncommon.
The cost of adding PIP to an auto policy will vary based on insurance rating factors, the amount of coverage purchased, driver demographics, and location. The average additional cost of adding $2,500 of PIP to an auto policy in Texas is about $50 per month.
Are PIP and Med-Pay the Same Thing?
Medical Payments (Med-Pay) is another type of optional auto coverage that provides first-party medical benefits to a driver and passengers without regard to fault. The coverage is more limited than PIP and only applies to medical and funeral expenses incurred within one year of an accident. There is no coverage for lost income or household services.
Insurance companies are not required to offer Med-Pay with their auto quotes. Reviewing coverage options can help a driver determine whether PIP, Med-Pay or some combination of these provide the desired risk protection.
What is the Difference between PIP and Bodily Injury Liability Coverage?
Bodily injury liability is a required coverage that pays for injuries a driver causes to third parties outside the insured vehicle, such as other drivers and their passengers, pedestrians, or bicyclists. The benefits are paid to others only after establishing the fault of the driver and may include compensation for non-economic losses such as pain and suffering.
PIP is a first-party coverage that provides benefits to the insured driver and the driver’s passengers without determining fault. It will apply even if the driver is at fault for an accident. PIP benefits only cover economic losses.
PIP coverage also follows the insured and applies when an insured is injured in an accident as a passenger in another vehicle, as a pedestrian, or while riding a bicycle. Thus, a passenger in a vehicle may be covered by the driver’s PIP policy as well as their own in the event of an accident.
Should I Buy PIP if I Have Personal Health Insurance?
Personal health insurance will cover many of the same medical expenses as PIP. However, health insurance usually has a deductible that must be met before benefits are paid, and the coverage is not as broad as PIP.
PIP works as a complimentary coverage to personal health insurance and fills in coverage gaps. There is no deductible with PIP, so it can be used to pay expenses that would otherwise be included in the health insurance deductible. PIP also provides coverage for lost wages and other household services the health insurance policy doesn’t cover.
Why You Should Consider Buying PIP with Your Auto Insurance
Buying PIP ensures there is at least some money immediately available to pay medical expenses and lost wages after an accident. Benefits are obtained by submitting a claim form supported by documentation of incurred expenses.
The following features suggest PIP is an optional coverage worth considering when purchasing auto insurance in Texas.
- PIP coverage applies no matter who’s at fault
- PIP has no deductible
- PIP can help pay for health insurance deductibles
- PIP provides benefits for up to 3 years after an accident
- PIP benefits can replace 80% of lost earnings
- PIP pays for childcare and household maintenance services
Okay, PIP coverage sounds like a good thing to have – just in case. But what are the chances a Texas driver might actually need to make a claim for PIP benefits? Pretty good, as it turns out.
Your Chances of Being Injured in a Car Accident Make PIP a Worthwhile Investment
The Texas Department of Transportation (TxDOT) reports that someone was injured in a motor vehicle crash in Texas about every 2 minutes in 2023. There was not a single deathless day on the state’s roadways. People moving on the roadways are at significant risk of injury from traffic accidents, which makes PIP a responsible and practical way of managing the risk.
The Houston car accident lawyers at The Krist Law Firm, P.C. know how important insurance can be when it comes to paying claims for injuries from a motor vehicle accident. Our clients often come to us frustrated by dealings with insurance companies. After letting us take over their claims, our clients leave us satisfied that they have obtained the justice they deserve. The Krist Law Firm, P.C. will fight for your future. Call today.