You’ve determined how much coverage you want for liability & uninsured / under insured motorist, as well as the comprehensive and collision deductibles you want to carry. What’s next? One of the decisions left is to determine if you want medical coverage or personal injury protection, and if so, how much coverage do you want to carry?
Medical Coverage or Med Pay provides for medical care or injuries resulting from a car accident. Some important things to note are;
- It is designed to only cover medical care 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 (some policies do offer more)
Personal Injury Protection or PIP provides for broader coverage than Med Pay including;
- PIP provides for medical care resulting 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 or in a cab around the world
- In addition to medical, it can also cover lost wages, and pay for services while you recover from your injuries – cut the grass, etc.
- It’s not paid on a reimbursement basis
- Typical amounts of coverage offered on most Texas policies are $2,500, $5,000, $10,000
The three main differences between medical coverage and PIP are;
- PIP can be used for more options
- PIP does not have to be claimed on a reimbursement basis so it’s easier to tap
- There is a cost basis between the two, Medical costs less
I recommend PIP because of its flexibility. If you’re self-employed or have a medical plan with a high deductible, carry a higher amount to help bridge that gap. Have a question or want to share your experience? Post it on our Facebook page or in the comments section below. We respond to all comments & questions.
