Personal Injury Protection (PIP) Insurance: A Must Have or Must Avoid?
Texas law requires that all drivers carry at least minimum coverage insurance including coverage for injuries and property damages. Personal Injury Protection, also known as PIP, is usually included in every vehicle insurance policy in Texas. Many people are unaware of what PIP really is and how it can actually help after an accident.
Different Types of Insurance Coverage
Before you try to figure out PIP insurance, it is helpful to understand the various types of insurance coverage options that are available to you from your insurance company.
Liability pays for the costs of medical bills, lost wages, and other expenses you may be responsible for due to an accident. It covers property damage and may sometimes pay for a rental car if one is necessary. Liability insurance is also a requirement in Texas.
This insurance covers damages to your own vehicle that may have occurred in the course of a collision. Generally, a loan is taken out through a lender for your vehicle. The lender requires you to have collision insurance that covers damages or loss of the vehicle at least in the amount of the loan.
Comprehensive insurance covers the cost of any repairs your vehicle may incur if in an incident other than an accident, such as vandalism or hail damage.
Uninsured/Underinsured Motorist Insurance
This insurance provides protection against drivers who don’t have insurance or don’t have enough insurance to cover the damages to your vehicle.
While Texas law only requires you to carry liability insurance coverage, you should still protect yourself by obtaining more. As a minimum, Texas drivers must carry $30,000 per person, $60,000 per accident, and $25,000 for property damage. If you’ve looked at insurance plans, this would be considered the 30/60/25.
Importance of Personal Injury Protection Insurance
PIP (Personal Injury Protection) provides extended coverage for medical expenses and lost wages. It pays out claims regardless of who is at fault. It is often advised to include PIP insurance as a part of your auto policy. In fact, because it is automatically included in your coverage, you have to reject it in writing to your insurance provider to get it taken off. PIP can reduce the number of accidents claims because it pays for expenses in cases where there could otherwise be a dispute over fault.