Personal Injury Protection (PIP)
Plain English
PIP pays your and your passengers' medical bills after a crash, and also things like lost wages, usually whoever was at fault. It's similar to medical payments coverage but broader. Some states require it; in Texas, all policies include it unless you reject it in writing.
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On this page
Definition
Personal injury protection, or PIP, is auto coverage that pays medical bills for you and your passengers after an accident, and also some non- medical losses such as lost wages, generally regardless of fault. Whether it's required, offered by default or optional depends on the state.
Why It Matters
After an injury, lost income can cost more than the medical bills. PIP is designed to cover both quickly. Because the rules are state-specific, what you have depends on where your car is insured.
Real-World Example
Imagine Lena is hurt in a crash and misses two weeks of work. Medical payments coverage would generally help with her medical bills only. PIP, under a Texas policy, could help with her medical bills and part of her lost wages, up to its limit, whoever was at fault.
Common Misconceptions
- Assuming PIP and medical payments are the same.
- Thinking PIP works the same in all states.
- Rejecting PIP without understanding what it would have covered.
Key Takeaways
- The Texas Department of Insurance: PIP "pays your and your passengers' medical bills. But it also pays for things like lost wages and other nonmedical costs."
- In Texas, "All auto policies in Texas include PIP coverage. If you don't want it, you must tell the company in writing."
- Other states treat PIP differently, from required to unavailable. Check your state's rules.
- PIP has a dollar limit, the most the policy pays.
Frequently Asked Questions
Is PIP required?
It depends on the state. In Texas it's included in all policies unless you reject it in writing.
What's it commonly confused with?
Medical payments coverage, which pays medical bills but generally not lost wages.
State-specific note: Texas: PIP is included in all auto policies unless the policyholder rejects it in writing (Texas Department of Insurance). Other states differ.
Related Terms
Related Coverages
- Auto Insurance
Related Scenarios
Explore the rest of the Auto Insurance category.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Auto insurance guideTexas Department of Insurance
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.