What is PIP Insurance?

Does Personal Injury Protection apply to you?

In Texas, we drive more than 770 million miles a day, according to the Texas Department of Transportation. As a result of this, car accidents are an almost certainty. When you are involved in a motor vehicle accident a number of things can happen and it takes time to resolve. According to the Insurance Information Institute at least 14% of Texans are uninsured. This means that you face the possibility of being hit by someone who does not have auto liability insurance. This is when Personal Injury Protection can come in to assist you. If you have been injured in an car or truck accident, call a car accident attorney at The Low Law Firm today 325-455-1889.

Personal Injury Protection (PIP) is a type of car insurance coverage that is particularly important in states like Texas. It is designed to cover medical expenses and, in some cases, lost wages and other damages, regardless of who is at fault in an accident. Here’s a detailed look at PIP, how it compares to Medical Payments Coverage (MedPay), its costs, and whether you should consider adding it to your policy.

What is Personal Injury Protection (PIP)?

PIP coverage is a component of auto insurance that helps pay for medical expenses, lost wages, and other related costs resulting from a car accident. It is often referred to as “no-fault” coverage because it pays out claims irrespective of who caused the accident. This ensures that you and your passengers can receive immediate medical treatment without worrying about who is responsible for the crash.

PIP vs. Medical Payments Coverage (MedPay)

While both PIP and MedPay cover medical expenses, there are key differences between the two:

Scope of Coverage:
PIP: Covers medical expenses, lost wages, rehabilitation costs, and in some cases, services you can’t perform because of injuries (like childcare or house cleaning). It may also cover funeral expenses in the event of a fatal accident.

MedPay: Typically covers only medical and funeral expenses. It does not cover lost wages or other non-medical expenses.

Fault Requirement:
PIP: Operates on a no-fault basis, meaning it pays out regardless of who is at fault.
MedPay: Also pays out regardless of fault but does not cover as wide a range of expenses as PIP.

Mandatory vs. Optional:
PIP: In Texas, insurers are required to offer PIP coverage, but policyholders can reject it in writing if they choose not to include it in their policy.
MedPay: Typically optional and less comprehensive than PIP.

Cost of PIP Coverage in Texas

The cost of PIP coverage in Texas can vary based on several factors, including the amount of coverage you choose and your overall insurance profile (driving history, type of vehicle, etc.). On average, adding PIP to your policy can cost between $10 and $50 per month, depending on the coverage limits. Standard coverage amounts usually range from $2,500 to $10,000 per person per accident.

Should You Include PIP in Your Policy?

Deciding whether to include PIP in your insurance policy depends on your individual needs and circumstances. At The Low Law Firm in Abilene, Texas, we highly recommend adding this coverage to our clients.

Here are some things to consider:

Financial Security: PIP can provide a financial safety net by covering medical bills and lost wages that may not be covered by health insurance or if you have high deductibles.

Comprehensive Coverage: If you frequently drive with passengers, PIP ensures that everyone in the vehicle has coverage in case of an accident.

State Requirements: While not mandatory, it is a prudent choice to ensure broader protection, especially given the high costs associated with car accidents.

Health Insurance Limitations: If your health insurance has limited coverage for car accident injuries or high out-of-pocket costs, PIP can fill in the gaps.

FAQs About PIP

1. Is PIP mandatory in Texas?
No, PIP is not mandatory, but insurers are required to offer it. You can reject it in writing if you don’t want it.

2. What does PIP cover that MedPay doesn’t?
PIP covers lost wages, rehabilitation costs, and essential services like childcare, which MedPay typically does not cover.

3. How do I file a PIP claim?
To file a PIP claim, contact your insurance provider and provide them with the necessary documentation, such as medical bills and proof of lost wages.

4. Can I use PIP coverage if I wasn’t driving?
Yes, PIP can cover you as a pedestrian or bicyclist if you’re hit by a car.

5. Does PIP cover passengers in my car?
Yes, PIP covers medical expenses for passengers in your car.

6. Can PIP be used for non-medical expenses?
Yes, PIP can cover non-medical expenses like lost wages and essential services that you cannot perform due to your injuries.

Including PIP in your auto insurance policy can provide valuable protection and peace of mind. Assess your personal situation and consult with your insurance provider to make the best decision for your coverage needs.

If you or a loved one have been injured in a car wreck in Abilene, Texas call an experienced personal injury attorney at The Low Law Firm at 325-455-1889.