What Is Personal Injury Protection Coverage?

by admin

Texas laws require that your insurer offer you a specific type of liability insurance called personal injury protection (PIP). The law also requires that they make it available to you with any liability auto insurance policy. If you don’t want PIP coverage you have to formally reject it in writing. Personal injury protection can be crucial in the wake of a car accident, and can help to significantly alleviate the costs of your recovery. Most insurers offer PIP coverage up to $10,000, while the minimum amount offered is set at $2500.

What Does PIP Cover?

Personal injury protection covers accident-related medical bills, 80 percent of your lost income and, in some cases, loss of the ability to perform household duties or costs to take care of an injured person. Keep in mind that all of these expenses pull from the same place, so if you have a $2500 PIP policy limit but face $2000 in medical bills and $1000 in lost wages, you can still only recover $2500. Additionally, reimbursement for loss of ability to perform household duties is available to individuals who are not income earners but provide essential services around the house.

PIP coverage is known as first party coverage. Many people do not realize that first party coverage is an important part of an insurance plan. They hold the common misconception that the liability insurance you are required to purchase will cover your damages in the event of an accident. That is not actually the case; rather, liability coverage is designed to cover the damages to others in the event you are at fault in an accident. PIP coverage, on the other hand, covers your costs, the costs of your family members listed on the policy, or any passengers in a covered vehicle.

If you have additional questions concerning your insurance plan, or if you need to seek compensation for a serious car accident in Tyler, get in touch with a personal injury attorney today.

Leave a Reply