WHAT IS PERSONAL INJURY PROTECTION?
Texas law requires all auto insurance companies to “offer” Personal Injury Protection insurance coverage (“PIP”) with any auto liability policy. PIP is additional insurance that will cover medical expenses and lost income.
WHAT EXPENSES WILL PIP PAY?
PIP will cover 100% of necessary medical expenses. The insurance company will require medical documentation from the health care providers that the injuries were as a result of the wreck. Also, PIP will pay 80% of lost income. The insurance company will require proof of lost income.
HOW DO I KNOW IF THERE IS PIP?
There is no requirement that the additional must be purchased, it can be rejected. However, there must be a “signed written rejection”. PIP rejection must be in writing. If the auto insurance company cannot provide proof of written rejection, then they must provide the minimum coverage of $2,500.00. We have been successful recovering PIP coverage for many clients because there was NOT a “signed written rejection”.
AMOUNTS OF COVERAGE
The minimum PIP coverage is $2,500.00. Most auto insurance companies offer $2,500.00, $5,000.00 and $10,000.00 in PIP benefits. Some insurance companies offer up to $100,000.00 in PIP benefits.
WHY SHOULD I USE MY PIP IF THE WRECK WASN’T “MY
Clients frequently tell us they don’t want to make a claim on their own insurance policy because the accident or wreck was not their fault and they don’t want their insurance involved. They fear that their insurance rates will go up.
PIP IS “NO-FAULT” INSURANCE
Personal Injury Protection (PIP) is “no-fault” insurance coverage. It’s against the law for an insurance company to raise the rates for using it.
WILL IT RAISE RATES?
NO! Personal Injury Protection (PIP) is by definition “no-fault”. Insurance companies are legally prohibited from increasing the premium.