What to Know About Personal Injury Protection Coverage in Texas
Texas insurers must include personal injury protection in all auto policies, but drivers can choose to opt out of the coverage.
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Written byAnna Baluch
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
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Edited bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Updated September 10, 2024
Reading time: 4 minutes
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Table of contents
Table of contents
Personal injury protection (PIP) is a type of car insurance that covers medical and non-medical expenses related to injuries you or your passengers sustain in a car accident. PIP insurance can reimburse you for medical bills, lost wages, child care costs, and even funeral expenses.
PIP coverage can kick in no matter who’s at fault for the accident. Texas law requires all insurance policies to include PIP coverage, but you can inform the insurance company in writing if you don’t want it.[1] Here’s what you need to know about personal injury protection in Texas.
How PIP coverage works in Texas
In Texas, insurance companies must offer at least $2,500 of PIP insurance to every driver.[2] You can typically increase this coverage if you prefer additional financial protection.
Unlike no-fault states, which require all drivers to invest in PIP coverage, Texas makes it optional. But if you decide to decline this type of insurance, you’ll have to submit a written formal request. Keep in mind that if you’re ever in a car accident and don’t have PIP coverage, you may be on the hook for hefty medical costs and non-medical expenses, like lost wages or child care.
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Steps to reject PIP coverage in Texas
Unless you explicitly reject PIP coverage in writing, your car insurance company will automatically include it in your coverage. If you’d like to forgo PIP insurance in Texas, follow these steps:
Consider your coverage preferences and individual needs. Consider the type of auto insurance you need. Maybe a basic liability auto policy is enough, or perhaps you could benefit from more comprehensive coverage.
Fill out a waiver. If you’re sure you don’t want PIP coverage and prefer to pay less for your auto insurance, sign a waiver from your insurer that states you want to opt out. After sending, confirm that your car insurance company received the waiver.
What PIP covers
PIP coverage can help pay for the following types of medical and non-medical expenses when you or your passengers are hurt in an accident:
Medical expenses
PIP coverage helps pay for things like doctor and hospital visits, diagnostic tests, surgery, rehabilitation, and ambulance transport. Keep in mind that your insurer will only pay medical bills up to your coverage limits.
Lost wages
If you get into an accident and are no longer able to work, a PIP policy may kick in and cover some of your lost wages — up to 80% in Texas. This is a huge plus if your family relies on your income and you want to protect your financial well-being.
Child care and household expenses
PIP coverage can provide financial assistance to pay for things like child care and house cleaning when injuries leave you unable to care for your family or home.
Funeral expenses
Unfortunately, some serious accidents lead to death. If this occurs, PIP benefits, sometimes called survivor benefits, may reimburse you for funeral expenses. It can take away some of the financial burden that comes with a loved one’s passing.
What PIP excludes
While PIP coverage is robust, it doesn’t cover everything in the event of an accident. It usually excludes bodily injuries to the other driver and their passengers.
In addition, PIP insurance won’t cover property damage to your vehicle or someone else’s property, vehicle theft, vehicle damage due to weather or vandalism, or medical expenses or other costs that exceed coverage limits.
The good news is other types of car insurance — like bodily injury liability, collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage — can help fill in these gaps.[3]
Medical payments vs. PIP coverage
Medical payments insurance, or MedPay, is similar to PIP coverage in that it also helps pay for medical expenses and hospital bills after car accidents, regardless of who was at fault. But PIP insurance covers lost wages and funeral expenses in addition to medical bills.
Unlike MedPay, insurance companies in Texas must offer PIP insurance to policyholders. Compared to MedPay, PIP coverage is more expensive.
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Filing a PIP claim in Texas
Follow these steps to file a PIP insurance claim in Texas:
Inform your insurer of the accident. Let your car insurance company know about the auto accident right away online, over the phone, or through the mobile app. Be prepared to share details about what happened.
Gather documentation. Collect any documents related to your losses. These may include medical bills, proof of lost wages and income, and any other receipts or invoices for related expenses.
Cooperate with your insurer. Your insurance company may ask you for more documents or information related to your claim. Get back to them promptly to avoid delays in the reimbursement and compensation process.
Texas PIP FAQs
If you’re wondering whether you need PIP coverage in Texas, here’s some additional information that can help.
What is personal injury protection in Texas?
Personal injury protection helps pay for medical expenses, lost wages, and funeral costs due to injuries after a car accident — no matter who’s at fault. All Texas insurance policies include it automatically, and if you don’t want this coverage, you must opt out in writing with your insurer.
What are the limits on a personal injury policy in Texas?
Per Texas law, insurance companies must offer at least $2,500 of PIP coverage. But you can increase this amount if you want additional protection.
Is PIP worth it in Texas?
While personal injury protection coverage is optional in Texas, it’s usually worthwhile to have it on your policy because it could save you thousands of dollars in the long run. Without it, you may be responsible for high out-of-pocket expenses after a car accident.
Is Texas a mandatory PIP state?
No. Personal injury protection insurance isn’t mandatory in Texas, although drivers must carry minimum liability coverage. But insurance companies must include it as part of their auto insurance policies. In most cases, Texas drivers can benefit from this coverage.
Do you need PIP if you have health insurance?
Some states require PIP coverage even if you have health insurance, but Texas doesn’t. You can opt out of PIP coverage regardless of whether you have health insurance in Texas. But before doing so, make sure you can afford to cover accident-related medical treatment out of pocket.
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Popular articles
Sources
- Texas Department of Insurance. "Auto insurance guide."
- Texas Office of Public Insurance Counsel. "Understanding PIP vs Med-Pay."
- Insurance Information Institute. "What is auto insurance?."
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Anna BaluchInsurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Edited bySarah Archambault
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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