What is PIP insurance and do you need it?
PIP insurance, or commonly referred to as personal injury protection insurance, is mandatory in the state of Texas. And unless you specifically decline it in writing, you’re going to have it on your policy. And what PIP pays for are those out-of-pocket expenses that you incur after an accident. You’ll have copays, you’ll have deductibles, you may have lost wages. PIP is there to reimburse you almost immediately for those lost items while the rest of your insurance claim is being resolved, which can take weeks, months, or even years.
Therefore, that’s why it’s so important that you have PIP insurance. Now, there’s also another thing called MedPay, but MedPay, sometimes they try to get you to replace your PIP with MedPay, but the reason you don’t want to do that is because MedPay will not cover the other expenses other than medical bills. In other words, it will not cover your lost wages. It will not cover transportation. It will not cover anything other than medical bills. Therefore, it’s always preferred that you have PIP.
In that regard, get as much as you can. Typically, it’s not very expensive. The minimum amount is $2,500, but you can get all the way up to about $10,000. You ought to look into it if at all possible. Learn more about auto insurance by downloading our free brochure.
CATEGORY: Bar Talk
