Texas Auto Insurance: Understanding The Pip Requirement

Personal Injury Protection (PIP) is an auto insurance coverage that pays for your own medical care, lost wages, and other related expenses if you're hurt in a car accident. In Texas, PIP insurance is not mandatory, but it is required to be offered to drivers and they must sign a waiver if they want to decline the coverage. Texas requires insurance companies to offer every driver at least $2,500 of PIP insurance. While it is not required, drivers are encouraged to opt for PIP coverage as it protects you when you're hit by a driver who flees the scene or doesn't carry the legally required insurance.

What does PIP cover?

Personal injury protection (PIP) is an auto insurance coverage that pays for your own medical care, lost wages, and other related expenses if you're hurt in a car accident. PIP covers you and anyone riding in your car, regardless of whether you were responsible for the crash.

In Texas, PIP covers:

• Reasonable medical costs, including necessary surgeries, X-rays, dental or eye treatments, medical procedures, prosthetic devices, and professional nursing.
• Rehabilitation therapy.
• Lost income resulting from the accident.
• Replacement of necessary services provided by the injured party, such as family care or household maintenance, if the injured person is not an income producer.
• Funeral and burial costs.

While PIP is not mandatory in Texas, it is automatically included in all auto policies. If you do not want it, you must inform the company in writing. The minimum coverage amount in Texas is $2,500, but you can typically increase your coverage to $5,000 or $10,000 if you want additional financial protection.

Is PIP mandatory in Texas?

In Texas, Personal Injury Protection (PIP) is not mandatory. However, insurance companies are required to offer it to drivers, and drivers must actively opt out of the coverage in writing if they do not want it. This is usually done by signing a waiver.

While it is not compulsory, PIP is a valuable form of insurance that can protect you and your passengers in the event of an accident. It covers medical costs, lost wages, and other financial losses resulting from injuries sustained in a car accident, regardless of who is at fault.

If you are at fault for an accident and don't have PIP coverage, insurance won't help you pay any resulting medical expenses for yourself or your passengers. Additionally, if you are hit by a driver who does not have insurance or enough insurance to cover your medical expenses, PIP can be extremely beneficial.

The minimum coverage offered in Texas is $2,500, but you can typically increase this to $5,000 or $10,000 for more financial protection.

How much does PIP insurance cost in Texas?

The cost of Personal Injury Protection (PIP) insurance in Texas varies depending on where you live, the amount of coverage you want, and your driving history.

Texas law requires insurance companies to offer every driver a minimum of $2,500 of PIP coverage. You can increase your coverage to $5,000 or $10,000 if you want additional financial protection. The cost of PIP insurance typically increases slightly if you purchase more coverage than the $2,500 minimum. For example, a driver with the state's minimum liability insurance requirements could pay less than $39 per month for $10,000 in PIP coverage.

It is recommended that you compare quotes from at least three or four insurers before choosing a policy to ensure you are getting a good rate.

How to file a PIP claim

Texas law requires insurance companies to offer every driver at least $2,500 of PIP insurance. You can increase your coverage to $5,000 or $10,000 if you want additional financial protection. You can also decline coverage, but you'll have to submit your refusal in writing.

To file a PIP claim, follow these steps:

• Report all personal injuries and expenses to your PIP provider as soon as possible. PIP only gives you coverage for losses that occur within three years of an auto accident.
• Include all bills, receipts, proof of payments, and related documents when filing a PIP claim. This ensures the case is processed quickly.
• Depending on the type of expense, your PIP claim may have different reimbursement levels. For example, PIP coverage pays for 100% of medical treatment, ambulance services, and funeral expenses, but only 80% of lost wages and caregiver expenses.
• Document all treatments, costs, and proof of income to ensure full reimbursement. Obtain documentation from your service providers to show that the expenses are related to the car accident.
• Contact your insurance company to understand their specific requirements and timeline for filing a PIP claim.

MedPay vs. PIP

MedPay and PIP are two types of auto insurance coverage that can help with medical expenses after a car accident. While both MedPay and PIP cover medical expenses, there are some key differences between the two.

MedPay

MedPay, or Medical Payments, is an optional coverage in most states. It covers the medical payments of the driver and their passengers if they are injured in a crash. MedPay typically covers medical, surgical, dental, and chiropractic treatments, as well as ambulance transportation, hospitalization, X-rays, nursing care, prosthetics, and funeral expenses. MedPay is not a substitute for regular health insurance and only covers expenses incurred in an accident. It is also subject to subrogation, meaning that the insurance company can ask the other driver's insurance to reimburse them for MedPay coverage, reducing the total amount of money received from a claim. MedPay tends to be relatively inexpensive, usually costing around $5 extra per month, with a maximum payout between $5,000 and $10,000.

PIP

PIP, or Personal Injury Protection, covers medical payments and other documented losses such as lost wages. In Texas, insurance companies are required to offer every driver at least $2,500 of PIP insurance, with the option to increase coverage to $5,000 or $10,000. PIP covers reasonable medical costs, including surgeries, X-rays, dental or eye treatments, medical procedures, prosthetic devices, and professional nursing care. It also covers rehabilitation therapy, lost income resulting from the accident, and replacement of necessary services such as family care or household maintenance if the injured person does not work outside the home. PIP provides coverage for up to three years from the date of the accident and pays 100% of medical treatment, ambulance services, and funeral expenses, while covering 80% of lost wages and caregiver expenses. PIP is typically more expensive than MedPay because it provides more benefits.

The main difference between MedPay and PIP is that MedPay only covers medical expenses, while PIP covers additional losses such as lost wages and certain services. PIP also does not have subrogation rights, meaning that the insurance company cannot ask for reimbursement from the other driver's insurance. MedPay may be a good option for those who want additional coverage for medical expenses, especially if their PIP or health insurance has a high deductible. However, PIP provides more comprehensive coverage and ensures that all medical bills and lost wages will be covered in the event of an accident.

Frequently asked questions