Over the last few weeks we’ve looked at three types of coverage available, whether required or optional, on any Texas car insurance policy. These include liability coverage, uninsured motorist coverage, and the three most common types of deductibles. The next coverage available to Texas drivers provides for medical care and support services.
Texas car insurance policies offer two different types of medical coverage, medical coverage, which is sometimes referred to as Med Pay, and personal injury protection, or PIP. There are a number of similarities between these two options, but there are also some real differences.
Medical Coverage provides for medical care, or funeral expenses, for injuries sustained in a car accident.
- It covers medical care or funeral expenses regardless of who’s at fault
- It applies to you and anyone riding with you in your car at the time of the accident
- It is paid on a reimbursement basis, so keep up with your receipts
- Typical amounts of coverage offered on most Texas policies are $2,500, $5,000, $10,000, although some companies do offer higher limits
Personal Injury Protection provides for broader coverage than Med Pay including;
- PIP provides for medical care or funeral expenses for injuries sustained in a car accident regardless of who’s at fault
- It applies to you and anyone riding in your car at the time of the accident
- It also covers you if you’re riding in another person’s car, in a cab, on a train, plane, or boat anywhere in the world
- It covers lost wages if you’re unable to work due to accident related injuries
- It pays for services you’re unable to perform as a result of accident related injuries such as cutting the grass, someone running to the grocery store for you etc.
Personal injury protection, like medical coverage is paid on a reimbursement basis, and has similar limits of coverage; most Texas policies offer $2,500, $5,000, $10,000. Personal injury protection can also be used by a personal injury lawyer to sue the other party in an accident, or even one of the insurance companies. Med Pay costs less than PIP. If you choose Med Pay, Texas law requires you sign an acknowledgement form stating you understand the difference and have rejected personal injury protection
I recommend PIP because of its flexibility and its income replacement for anyone working. I also recommend you carry higher limits of $5,000 or $10,000 on either one if you’re self-employed or have a medical plan with a high deductible. Do you have a question, comment, or experience you’d like to share? Post it on our Facebook, Google +, or LinkedIn pages. I’d love to hear from you!