Navigating insurance policies after a car crash and figuring out who will compensate you for your injuries is a daunting task. It gets even more complicated when you realize that there are different subsets of insurance coverage and routes potentially available to pay or reimburse medical bills.
One mechanism you may be able to use to pay your bills is personal injury protection or PIP, coverage. It’s sometimes referred to as “no-fault” insurance, and it deals with injuries sustained and damages incurred during a car crash. It’s not a mandatory form of insurance in Texas, which means it may be a new concept to some people. If you have questions about PIP, our Dallas car accident attorneys have answers.
In this article, we’ll explain what PIP is, how PIP claims work, and when it might make sense to use this form of compensation. Let’s dive in.
What Is PIP and How Is It Different From Bodily Injury Liability Insurance?
Personal Injury Protection insurance, or “PIP”, falls under the wider umbrella of auto insurance. It covers some medical expenses—and possible extended coverage like lost wages and funeral expenses—for you and your passengers after a car wreck.
Unlike standard health insurance, PIP is designed specifically for car accidents. It’s meant to cover expenses that regular health insurance may not. Or, it can be used if you don’t have health insurance and need help covering some of your medical bills after a car wreck.
PIP is also different from the bodily injury liability insurance that’s included in most car insurance policies. PIP covers you and any other passengers in your vehicle, while bodily injury liability insurance covers occupants of other vehicles if you are at fault in a collision.
| Category | Personal Injury Protection | Bodily Injury Liability Coverage |
| Injuries to the Policyholder | Covered | Not Covered |
| Injuries Caused by the Policyholder | Not Covered | Covered for Others |
| Medical Bills | Covered | Covered for Others |
| Funeral Expenses | Covered | Covered for Others |
| Lost Income | Covered | Covered for Others |
| Required in Most States? | No | Yes |
| Deductible? | No | No |
How Does It Work?
PIP, is also known as “no-fault coverage,” and just like the name implies, it will cover your expenses (for as much as the plan allows) regardless of who caused the crash. This typically makes the claim process quicker than with other kinds of car insurance claims. For instance, when you file a claim with the at-fault driver’s insurance company, they’ll often find ways to delay a payout, minimize the fault of their policyholder, or deny your claim altogether. But because fault is not an issue with a PIP claim, you can generally expect to get paid much quicker without waiting through a long lawsuit or claims process. With PIP, you need to file a properly documented claim, typically medical bills, with your own insurer to receive funds.
In Texas, the typical increments of PIP coverage are $2,500, $5,000 and $10,000. However, most insurance companies will offer larger amounts of PIP coverage. Oftentimes, the available PIP coverage is not enough to cover all of the medical bills or damage Even if you have access to PIP coverage, you can still file a third-party car insurance claim with the at-fault driver’s insurance company, or pursue a personal injury lawsuit against the at-fault driver.
With the complexities of the claims process and the gamesmanship of insurance companies, it makes financial sense to get a Dallas car accident attorney’s help with your personal injury case. Read this article to learn more about when you should consult a car accident attorney.
What does personal injury protection insurance cover?
The great thing about PIP is that it not only covers the policyholder, but also covers passengers in their vehicle, and other people driving the policyholder’s vehicle with consent. If you are a pedestrian or a cyclist struck by a vehicle, or if you’re riding in somebody else’s vehicle and are in a crash, your PIP insurance may also cover you too.
The specific expenses covered by PIP will vary from plan to plan, but generally, PIP covers any necessary medical procedures and associated reasonable expenses relating to injuries sustained during a collision. Covered expenses may include:
- Ambulance charges
- Hospitalization costs
- Necessary medical procedures, including surgeries and operations
- Physical therapy or rehabilitation
- Ongoing care
- Lost wages, if you are forced to stop working for a time
- Death benefits and/or funeral costs
- Expenses for duties you may be unable to fulfill, such as house cleaning and childcare
What Does PIP Not Cover?
PIP isn’t a sweeping type of coverage. As the name suggests, personal injury protection insurance is designed to only cover expenses relating to injuries suffered in a car crash. In most cases, personal injury protection or no-fault insurance coverage does not include:
- Property damage
- Deliberate or criminal acts
- Other parties’ medical expenses
- Non-economic damages, like pain and suffering or mental anguish
For vehicle damage expenses, you’d need to file a claim through the insurance company of the driver who’s at fault.
Is PIP Required In Texas?
Texas law does not require PIP insurance to drive in Texas. Although you do not have to buy PIP insurance, Texas law requires your auto insurer to offer at least $2,500 of PIP insurance when you buy a new policy.
To opt-out of PIP coverage, you have to reject it in writing. If you do nothing, PIP coverage is automatically added to the policy. So, there’s a good chance you have this policy unless you’ve taken the steps to write an opt-out letter.
While PIP is not required, it’s a good idea to keep this coverage on your policy. It’s very inexpensive and is a great mechanism to help get medical expenses paid quickly while you’re waiting for a settlement from the at-fault driver’s insurance company.
Do You Need a Lawyer's Help to Make a PIP Claim?
In many instances you probably don’t need an attorney to collect PIP coverage However, should consider consulting with a Dallas car accident attorney where your injuries are severe and your expenses exceed your PIP coverage limits.
We also find that sometimes insurance carriers are obstructive and dilatory. Too often they try to downplay your injuries and unnecessarily drag out the process hoping to reduce the amount paid out to you. In this situation, it is advisable to get help from a Dallas car accident attorney to ensure you receive as much compensation as possible.
Getting Help From Dallas Car Accident Attorneys After a Wreck
Our Dallas car accident attorneys have years of experience navigating the insurance system and fighting for the compensation victims deserve. We understand the language and provisions in auto insurance policies, know how to deal with insurance companies, and can help you find ways to pay your medical bills if you need financial assistance. If you’re ready to discuss your options, contact us for a free, no-obligation consultation today.
