In Texas, it is mandatory that all motorists carry Personal Injury Protection (PIP) as part of their automobile insurance. PIP provides coverage for you and your passengers if you are involved in an auto accident. PIP benefits are paid out regardless of who caused the accident. You choose coverage based on a maximum dollar amount that you will be paid out.
This coverage generally pays for your medical expenses, including dental and vision. If you are unable to work, you can recover lost wages. If you need help performing household tasks due to injuries sustained in the accident, Personal Injury Protection will pay for substitute services. If the accident results in death, funeral expenses are also covered. PIP not only covers the driver, but all the passengers as well.
While PIP is mandatory, this coverage can be waived in Texas if the consumer signs off in writing. Many people elect to waive PIP because they feel it overlaps with their medical benefits. If they are in an accident, regardless of fault, their medical insurance will pick up the slack. However, most medical plans will not pay for lost wages or costs of your household care. Also, if any of your passengers are uninsured, your medical benefits would not cover their care. Personal Injury Protection Coverage will. PIP coverage also has no deductible. If you have a medical plan with a high deductible, you may pay all of your expenses out of pocket without PIP.
If you are involved in an accident that is not your fault, your PIP coverage will kick in and take care of your needs. Your insurance carrier will then seek to recover its costs from the other driver, or that driver's insurance carrier. However, when liability for an accident is in question, PIP is nice to have. It could take months or years to hash out a legal dispute over who was at fault. Some insurance providers may drag their feet on paying for your necessary care until liability is determined. This can be quite a hassle to deal with. Personal Injury Protection can give you piece of mind while dealing with your legal issues.
