Houston PIP Insurance

PIP, or Personal Injury Protection, insurance is mandatory in several states, including Texas. PIP can, however, be deleted from your policy upon request. It is up to you and the insurance provider to decide what is best suited to fit your needs.

This type of insurance protects the driver and occupants of a vehicle in case of accident, regardless of fault, up to the amount stated on the policy. This amount is usually between $2,500 and $10,000. That is supposed to cover any medical expenses and lost wages. This addition to the policy, though an added expense, can be beneficial in the case of inexperienced drivers and teenage drivers.

One very important thing to note is that PIP insurance does NOT offset UIM, or uninsured motorist insurance. Ask any agents you are speaking with to explain the difference and how it can affect you and any other drivers on your policy in Houston.

Young Drivers: PIP is valuable for several reasons, in particular to teenage drivers. Although it can be deleted from the insured’s policy, that must be specifically requested or it is just considered standard on the policy. When insuring a teenage driver, this can often double the cost of the policy when compared to an adult driver. Considering that teenage drivers are very likely to have an accident within the first twelve months of driving, this mandate can become more affordable than you would originally think.

Quick access to funds: Primarily, PIP can result in claiming funds much sooner than with a normal claim. This is beneficial in that you don’t have to wait for lost wages to be reimbursed while waiting for the claim to process. A common misconception, however, is that PIP covers liability. This is, in fact, not true. PIP only covers injuries and lost wages from an accident up to the amount insured, regardless of fault. So if you purchase the minimum of $2,500 or so for coverage, you will only be able to claim up to $2,500 in medical expenses and lost wages. It is common for many insurance companies to recommend $5,000 or more for PIP so the insured is adequately covered.

Other Insurance: Make sure you check with your health insurance provider to see what they cover in case of auto accident and get your PIP insurance to cover what your health insurance does not.

It is also important to speak with your insurance provider before filing a claim to see if claiming the PIP and receiving funds quickly is the best option at the time of the accident.

In short, though you may have the option to opt out of PIP insurance, many states have mandated it as a means to protect you, the other drivers on your policy, and the occupants in your vehicles from unnecessary financial hardship. Talk with several insurance companies you are considering working with at length before deciding that saving money on your policy outweighs the potential expenses you could incur without PIP.