Everything You Need to Know About PIP Insurance in Texas
As a motorist in Texas, you’re required to have auto insurance, but there's an optional coverage known as Personal Injury Protection (PIP) that you can add to your policy. This coverage provides valuable benefits for a relatively low cost. Here’s an in-depth look at what PIP can do for you if you’re involved in an accident.
What is PIP Insurance?
Personal Injury Protection (PIP) is an optional add-on to your auto insurance policy that covers immediate medical costs after an accident, regardless of who is at fault. The primary benefit of PIP is that it provides quick access to funds for medical care from your own insurance company, eliminating the need to wait for the other driver's insurance. Moreover, PIP does not require deductibles or copays.
PIP applies after any medical insurance you have, further reducing your out-of-pocket expenses.
Is PIP Required in Texas?
Texas is not one of the states that mandate PIP coverage. However, Texas law requires insurance companies to offer PIP coverage to all policyholders. If you choose to decline it, you must do so in writing. Otherwise, it will be included in your policy, and you will be charged for it. Thus, you might already have PIP without being aware of it.
How Do I Know if I Have PIP Insurance?
To find out if you have PIP insurance, check your auto insurance policy declarations page for a line item labeled “Personal Injury Protection.” If you’re unsure, contact your insurance agent for verification.
Who Does PIP Insurance Cover?
PIP covers the policyholder and:
- Immediate members of their household
- Step and/or foster children
- Non-family passengers and pedestrians involved in an accident
What Does PIP Insurance Cover?
PIP focuses on covering people, not property. It covers the following expenses:
- Medical Costs: PIP will pay up to $2,500 per person for medical expenses. You can opt for higher coverage limits, commonly up to $10,000 or more, depending on your policy.
- Lost Wages: PIP will cover 80% of lost wages if you are unable to work due to your injuries.
- Loss of Services: PIP will cover the cost of hiring someone to perform household services that you are unable to do due to your injuries.
- Funeral Expenses: PIP covers funeral expenses up to the policy limits.
PIP will only cover costs that are reasonable and directly related to the accident. It will pay the actual amount incurred up to the policy limits.
Will PIP Cover Pain and Suffering?
No, PIP does not cover pain and suffering. If another driver is at fault for the accident, you can file a personal injury claim against their insurance for non-economic damages, including pain and suffering.
When Will PIP Not Cover Me?
PIP will not cover you if you were:
- Committing a felony
- Intentionally causing the accident
- Participating in racing activities
- Injured while using motorcycles, farm equipment, mopeds, or off-road/recreational vehicles (unless you have separate PIP coverage for those vehicles)
How Long Do I Have to Submit a PIP Claim in Texas?
In Texas, you generally have up to three years after the accident to submit a PIP claim. It’s important to notify your insurance company as soon as possible and keep all relevant records and bills to support your claim.
What Does “PIP Subrogation” Mean?
PIP subrogation occurs when your insurance company seeks reimbursement from the at-fault driver’s insurance after paying your claim. This process can impact the final settlement amount you receive.
MedPay vs. PIP
MedPay is similar to PIP but only covers medical expenses. PIP, on the other hand, also covers lost wages, loss of services, and funeral expenses. Discuss your needs and budget with your insurance agent to determine the best option for you.
Can I Still Receive a Personal Injury Settlement if I Have PIP Insurance?
Yes, having PIP insurance does not prevent you from filing a lawsuit against the at-fault driver. PIP is designed to provide quick access to funds for minor accidents, and its coverage limits might not suffice for severe injuries. Therefore, you may need to pursue additional compensation through a personal injury claim.
For assistance with your case, contact a personal injury attorney in Texas. They can help you navigate your PIP and personal injury claims and ensure you receive the compensation you deserve.
