Texas Auto Insurance: Understanding Pedestrian Coverage

In Texas, pedestrians hurt in crashes can be covered by their auto insurance, depending on the type of coverage they have. Texas law requires drivers to show proof that they can pay for accidents they cause, which is usually done through auto liability insurance. While liability insurance covers the other driver's repairs and medical bills, it does not cover the policyholder's injuries. For that, drivers can add on personal injury protection (PIP) or uninsured/underinsured motorist (UM/UIM) coverage to their policy.

Uninsured/underinsured motorist coverage

Uninsured Motorist Coverage

Uninsured motorist coverage protects you and your property after an accident where the at-fault driver does not have car insurance. It covers your injuries, your passengers' injuries, and damage to your vehicle. It also helps pay for hit-and-run damages when the driver cannot be found.

Underinsured Motorist Coverage

Underinsured motorist coverage protects you and your property when the at-fault driver has insurance but not enough to cover all the damage. This coverage steps in when you are in an accident and the at-fault driver's liability limits are too low to cover all the damages.

• Car repairs and replacement of property in your car
• A rental car, if needed
• Medical bills for you and your passengers
• Pain and suffering costs
• Diminished value if your car is worth less after the accident

The deductible for uninsured/underinsured coverage is typically $250, which is lower than the deductible for collision coverage. You can usually add more uninsured/underinsured coverage in $5,000 increments. It is recommended to add enough property damage coverage to replace your vehicle.

While it is not mandatory, uninsured/underinsured motorist coverage can provide valuable financial protection in case of an accident involving an uninsured or underinsured driver. In Texas, 1 in 12 drivers do not have auto insurance, and there are more than 2.6 million state-registered vehicles without a matched insurance policy. If you are hit by one of these drivers, uninsured/underinsured motorist coverage can help ensure that your costs are covered.

Personal injury protection

In Texas, PIP insurance is not mandatory, but you have to sign a waiver if you want to decline the coverage. Texas requires insurance companies to offer every driver at least $2,500 of PIP insurance. You can typically increase your coverage to $5,000 or $10,000 if you want additional financial protection. The policy limit, which extends to each person injured in an accident, refers to the total amount your insurance will pay per person.

If you and your spouse were involved in a car accident, and you had $5,000 of PIP insurance in place, your insurance would cover up to $5,000 in expenses for you and $5,000 in expenses for your spouse. If you broke your leg in the accident and were taken to the hospital, that $5,000 could be used for an ambulance trip, X-rays, and a cast, but that $5000 would be the maximum amount of money available from your PIP coverage for all costs total.

While you can reject PIP coverage in Texas, you'll have to submit your refusal in writing, and being without PIP could leave you and your loved ones footing some serious medical bills if you're ever in an accident.

Medical payments coverage

Unlike PIP, MedPay is not mandated by Texas law. You must specifically request MedPay coverage. Additionally, MedPay coverage may be issued in any amount: $500, $1,000, $2,000, etc. There is no state-mandated minimum.

MedPay does not cover lost wages. Although MedPay also provides no-fault coverage, it only covers medical bills and does not cover lost wages.

Unlike PIP, MedPay has a right of subrogation. That means your insurance company has the right to get reimbursed from your personal injury settlement for the amounts they paid under your MedPay coverage.

MedPay covers reasonable accident-related medical and funeral expenses. However, who and what is covered may vary, so check your policy. For example, MedPay may only pay for expenses within one year of the accident and only reimburse your health insurance deductibles and co-pays.

Collision coverage

If you still owe money on your car, your lender will require you to have collision and comprehensive coverage. If you cancel or lose these coverages, your lender will buy single-interest coverage and add the cost to your loan payment. This coverage is expensive and only protects the lender.

Comprehensive coverage

When purchasing comprehensive coverage, it is important to carefully review the policy details, terms, and exclusions. For example, some policies may exclude coverage for accidents occurring while driving for a ride-hailing service or delivering items for a fee. Understanding the specifics of your comprehensive coverage will help you know exactly what is and isn't covered in the event of an accident or damage to your vehicle.

In addition to comprehensive coverage, there are several other types of optional auto insurance coverages available in Texas, including collision coverage, uninsured/underinsured motorist coverage, medical payments coverage, and personal injury protection (PIP) coverage. It is recommended to consider your individual needs and budget when deciding on the types and amounts of coverage that are right for you.

Frequently asked questions