Auto Coverage That Benefits You,
Personal Injury Protection (PIP)
The roads in Texas can get crazy at times. Not only do you have to watch out for negligent drivers, there are other road hazards which can cause serious damage to you and your vehicle.
Most of us carry insurance to compensate others for our negligent acts. But, we should pay more attention to providing coverage for our own vehicles and the people in them. One of the best ways to do this is through Personal Injury Protection (PIP) coverage.
Texas auto insurance policies are required to include Personal Injury Protection ("PIP") coverage unless the policy owner specifically rejected that coverage in writing when the policy was purchased. (See Texas Insurance Code §1952). The benefits are paid without regard to whose fault the accident was and even when the party has a collateral source to pay the expenses.
The PIP benefits are paid for:
1) Necessary medical, dental, hospital, professional nursing or funeral services;
2) Replacement of income lost as a result of the accident; or
3) Reimbursement for expenses incurred for services ordinarily performed by the injured person.
The benefits are to be paid no later than the 30th day after the insurer receives satisfactory proof of a claim. The insurer may require proof as to the expense mandating the payment of the PIP benefits. If the insurer fails to timely pay the PIP benefits, the person entitled to the benefits is entitled to recover reasonable attorney’s fees, a penalty of 12% and interest.
Not only can you use your PIP coverage when you are driving your vehicle to protect you and your passengers, you can use your coverage as a passenger in another vehicle. Ask your attorney about stacking, which is using the driver’s coverage and the passengers separate coverage.