AUTO ACCIDENTS: Understanding Texas Auto Insurance: PERSONAL INJURY PROTECTION

Personal injury protection coverage (PIP) provides benefits to you, your family members, or others riding in your car when you’re in a wreck.  The coverage will pay for your medical expenses and 80% of your lost wages caused by injuries sustained in the wreck up to the limits of your policy.

Unless you specifically reject PIP coverage in writing, you will have $2,500.00 of coverage.  However, you can purchase much higher limits.

One significant benefit of personal injury protection coverage is that there is no subrogation interest.   Most insurance, such as health insurance or Medicare, has a subrogation interest.  That means that they might pay for your medical bills, but if you recover for those amounts from a third party who caused the injuries, then they will claim that you  must reimburse the health insurance company for the amounts they paid on your behalf.  However, PIP does not have a subrogation interest.  If they pay you benefits, you do not have to reimburse them if you make a recovery.