Personal Injury Protection (PIP)
Spanish: Protección Contra Lesiones Personales (PIP)
Definition
Personal Injury Protection, abbreviated PIP, refers to an optional Texas auto insurance coverage that pays for medical bills, lost wages, and essential services for the insured and all passengers after a covered accident — regardless of who was at fault. Under Texas Insurance Code §1952.152, carriers must offer PIP at a minimum limit of $2,500, and many Texas drivers elect higher limits such as $5,000 or $10,000. PIP typically covers approximately 80% of lost wages, replacement services like childcare or housekeeping, and funeral expenses if the crash is fatal. PIP pays quickly because no fault determination is required, making it particularly useful when liability is disputed or the other driver is uninsured. PIP is not the same as MedPay: PIP includes both medical and income replacement benefits, while MedPay covers only medical costs. PIP must be rejected in writing if declined.
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