Should You Use PIP Insurance After a Wreck?

It is mandatory coverage in Texas.

It’s included in every policy unless you waive it.

A waiver can be done online (clicking a box) or by signing a form.

If there’s no waiver, the insurance company must give you coverage.

The minimum coverage is $2,500 in Texas.

Some policies sell up to $100,000, but the most common are:

What is PIP Insurance?

PIP stands for Personal Injury Protection.

  • It is mandatory coverage in Texas.
  • It’s included in every policy unless you waive it.
  • A waiver can be done online (clicking a box) or by signing a form.
  • If there’s no waiver, the insurance company must give you coverage.
  • The minimum coverage is $2,500 in Texas.

Some policies sell up to $100,000, but the most common are:

  • $2,500
  • $5,000
  • $10,000

Why PIP is Good Coverage

  • It is no-fault coverage — meaning you can use it even if the accident was your fault.
  • It pays for:

Medical bills

Loss of earnings

If the wreck is not your fault and you file a claim with the at-fault driver’s insurance, your PIP coverage still pays your bills—so you don’t have to take money out of your settlement.

Example

Let’s say:

  • Settlement = $9,000
  • Medical bills = $3,000
  • PIP coverage = $5,000

➡️ Your medical bills are now paid by PIP.
➡️ Your lawyer takes one-third.
➡️ You keep the rest.

You don’t have to pay your medical bills out of that settlement.

PIP vs. Med Pay

  • If you need reimbursement for out-of-pocket costs at the time, you can use Med Pay.
  • But Med Pay has to be paid back later.
  • If you hire an attorney, your attorney can usually negotiate with the Med Pay carrier and get a one-third reduction.
  • If you don’t hire an attorney, you’ll likely have to pay back the full amount from your settlement.

For more videos, check out the Hensley Law Firm YouTube channel.

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