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Basics of Personal Injury Protection and Med Pay

Med Pay or PIP? Or Both? Which one is better in the event of an accident? My insurance agent is pushing me towards Med Pay, but PIP sounds better. Sound familiar? Well, here is some basic information about the difference between the two types of insurance coverage that you want to know about. If you are looking for a quick overview, see the chart below. For detailed information, read on past it.

PIP Med-Pay
Required under Texas law Yes No
Must be rejected in writing Yes No
Minimum Coverage $2,500 per person No
Covers Medical Bills Yes Yes
Covers Lost Wages Yes (80%) No
Right of Subrogation No Yes
Provides No-Fault Coverage Yes Yes


Personal Injury Protection (“PIP”) is coverage you purchase with your auto insurance policy that covers medical expenses and lost wages as a result of injuries sustained in a car accident. It is no fault coverage. So, you don’t have to wait for the insurance company to make a final determination of liability.

PIP is required under Texas law.  The Texas Insurance Code provides that all policies of automobile insurance issued in Texas must provide for PIP coverage for a minimum of $2,500 per person, unless rejected in writing by the insured. If you choose not to carry PIP coverage, then the insurance company is required to obtain your signed rejection of the PIP coverage.  Therefore, unless you rejected PIP, then you would be entitled to the minimum coverage even if you were never charged a premium for it.

But pay attention, many insurers like to give you the policy with the PIP coverage section marked as rejected. They then tell you that you don’t want it anyway and it costs more, blah blah blah. Move one.

Don’t let them do that to you. Make your own choice.

Minimum Coverage.  Minimum of $2,500 per person required by Texas law.  You may carry more coverage if you like.

What if I’m at fault in the accident? Does not matter. PIP is “no-fault” coverage which means you are entitled to PIP benefits regardless.

What does PIP cover?  Reasonable and necessary medical bills and 80% of your lost wages.

Does PIP Have a Right of Reimbursement?  No. PIP has no subrogation or reimbursement rights to your settlement dollars.

Medical Payments Coverage (Med-Pay) is another type of “no-fault” coverage option. Very similar to, but it operates a little differently than, PIP. Med-Pay coverage may be issued in any amount:  $500, $1,000, $2,000, etc. It is pretty flexible in that respect.

What Does Med-Pay Cover?  Med-Pay covers medical bills only.

Does Med-Pay Coverage Come With a Right of Reimbursement? Yes, if you use your own policy’s Med-Pay, your insurance company will have a right of reimbursement for the amount of Med-Pay coverage that they distributed to you. The process by which your insurance company will enforce this right is known as “subrogation”. Subrogation refers to the right of an insurance company to be reimbursed after you settle your case.

So, this means that your insurance company could come back and take money out of your pocket when you settle if you have Med-Pay, however, if you have PIP, they can’t. Important difference. Med-Pay can be incredibly helpful, however, there are some pitfalls. PIP is good all around. Get PIP.

If you or a loved one has been in an accident and you are trying to figure out how to maximize your insurance benefits, call Guest and Gray, P.C. and let us help you work through the massive amounts of red-tape in obtaining the coverage and benefits you need. We deal with both your insurance company, the at-fault party’s insurance, and we are trial attorneys ready to enforce your rights in a court of law.


GuestandGrayLogoIf you have been injured in an accident in the Dallas, Kaufman or Rockwall county areas, or anywhere in the State of Texas, you need to call the trusted personal injury team at Guest and Gray, P.C. Our firm is the largest and highest rated firm in both Kaufman and Rockwall counties. Our personal injury attorneys are caring, trusted and local. We pride ourselves in hard work and results.

Don’t call just any law firm to guide you through the courts. When you hire an attorney from Guest and Gray, P.C., you not only get an attorney assigned to your case, but you get a knowledgeable and caring support staff. Dealing with injuries or the loss of a loved one is stressful enough. Don’t waste your time having to hassle with your legal team. Call the law firm that cares. Call Guest and Gray, P.C. at 972-564-4644

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