Auto Insurance Regulations About PIP in Texas

Personal Injury Protection (PIP) coverage is automatically included with an insurance policy issued in Texas. A policyholder can decline the coverage with a written request.

Purpose

PIP insurance pays specific expenses after a vehicle accident. Covered expenses include medical care, lost income and payments for services an injured person cannot perform because of the accident. Funeral expenses are paid if an individual dies from injuries related to the accident.

Individuals Covered

The policy covers the policyholder, household members, passengers and any individuals authorized to drive the vehicle.

Amount

It is necessary for a driver with PIP to have a minimum of $2,500 in coverage. He can purchase additional coverage up to an amount set by the insurance company.

Limits

The amount paid by the insurance company is limited to the coverage amount. PIP payments are made even when other forms of insurance are available and regardless of who is at fault. Texas law requires the insurance company to pay the claim in a timely manner or face fines.

References

• Esurance: Texas Auto Insurance Liability Coverage
• Texas Auto Home Insurance: Types of Texas Auto Insurance Coverage
• Texas Department of Insurance: Automobile Insurance Made Easy