PIP in Texas: Everything You Need to Know
Personal injury protection in Texas is a default coverage that pays regardless of fault and, in most cases, cannot be recovered from your settlement by your own insurance company. Texas Insurance Code § 1952.152 builds PIP into every auto liability policy unless the named insured rejected it in writing, and coverage pays as soon as treatment begins without any fault determination. Texas Insurance Code § 1952.155(b) establishes that PIP benefits and your liability recovery are independent: what your insurance company pays through PIP does not reduce what you recover from the at-fault driver.
Texas PIP Stays in Force Without a Signed Rejection
Removing PIP from a Texas auto policy requires a specific step: the named insured has to sign a written rejection at the time of purchase. A verbal request, an agent’s note, or an unchecked box on a form does not satisfy the requirement under § 1952.152. The signed rejection is what legally removes PIP from the policy, and once signed, it carries forward through renewals with the same or affiliated insurance company unless the named insured requests coverage in writing.
When no signed rejection exists on file, Texas law reads PIP back into the policy regardless of what was discussed at purchase. Loewy Law Firm has reviewed cases in which clients were told their PIP had been waived, and the insurance company could not produce the signed rejection the statute requires. A policy review after an accident confirms what coverage was in place.
Texas PIP Covers Three Types of Loss
Under Texas Insurance Code § 1952.151, PIP covers the named insured, household family members, authorized operators, and any passenger or guest occupant of the insured vehicle for all reasonable expenses arising from a covered accident. Benefits address three distinct categories of economic loss, each designed for a different situation.
Medical Treatment
PIP covers all necessary medical, surgical, x-ray, and dental services, including prosthetic devices, ambulance transport, hospital care, professional nursing, and funeral services arising from the accident. Payment is based on the reasonable and necessary standard — charges directly related to accident injuries and not considered excessive for the service provided. Documentation for a medical claim typically requires itemized bills and treatment records linked to the accident.
Income Replacement
For those who were income producers at the time of the accident, PIP reimburses up to 80 percent of income lost as a direct result of accident injuries. Under Texas Insurance Code § 1952.154, the insurance company may require documentation as a condition of payment, which generally means pay stubs, an employer letter, or tax records confirming pre-accident earnings. The Self-employed usually satisfy the requirement with tax returns or business income records.
Household Services Reimbursement
Full-time caregivers, stay-at-home parents, and retirees who were not income producers at the time of the accident are covered for reasonable expenses for services ordinarily performed for the care and maintenance of the family or household. Receipts or invoices for those services are normally required. A parent unable to manage childcare, cooking, or household upkeep because of accident injuries has a documentable claim under this category even without a lost paycheck.
Texas PIP’s $2,500 Statutory Floor
Texas Insurance Code § 1952.153 sets the minimum PIP benefit at $2,500 per person in aggregate across all three benefit categories. For the cost of a single ambulance transport, an emergency room visit, and any imaging, that amount is gone before follow-up treatment or specialist care begins. Insurance companies may offer higher limits, commonly $5,000, $10,000, or more, and the additional premium is typically modest relative to the coverage gained.
Loewy Law Firm has seen cases across Texas where the $2,500 minimum was exhausted within days of the accident and clients were left without PIP coverage precisely when treatment was most intensive.
After PIP Is Exhausted
When PIP runs out before treatment ends, health insurance typically covers the remaining costs, subject to its own deductibles, copays, and network limitations. When both PIP and health insurance are exhausted, treatment can continue through a medical lien arrangement. Providers defer payment until the personal injury case resolves and are repaid from settlement proceeds. Underinsured motorist (UIM) coverage on your own policy may also apply if the at-fault driver’s insurance is insufficient to cover your total losses.
MedPay and Subrogation
Texas drivers are frequently offered Medical Payments Coverage (MedPay) alongside PIP. Both pay medical expenses through your own policy regardless of fault, but unlike PIP, MedPay gives your insurance company the right to recover what it paid from your settlement, a process called subrogation.
How Subrogation Works
Texas Insurance Code § 1952.155(b) establishes that PIP benefits are not subject to subrogation. Your insurance company cannot recover PIP payments from your liability settlement when the at-fault driver was properly insured. MedPay carries no equivalent protection, and an insurance company that pays MedPay benefits retains the right to reclaim what it paid from your settlement.
In Dollar Terms
If you receive $5,000 in PIP and settle the liability case for $30,000, you keep the full $30,000. If you receive $5,000 in MedPay and settle for $30,000, your insurance company recovers the $5,000, leaving you $25,000. The premium difference between MedPay and PIP is typically small.
Loewy Law Firm consistently advises clients carrying MedPay without PIP to verify whether a signed rejection was executed. When no signed rejection exists in the policy record, PIP is in force regardless of how the policy was presented at purchase.
PIP and Your Personal Injury Settlement
In a Texas car accident case, PIP and the liability claim against the at-fault driver operate independently. PIP activates immediately and pays regardless of fault. The liability claim against the at-fault driver is where the full scope of losses is pursued: total past and future medical costs, the complete income impact, and compensation for pain and suffering that PIP never covers.
No Subrogation: What Your Insurance Company Cannot Do
Under Texas Insurance Code § 1952.155(b), an insurance company paying PIP benefits does not have a right of subrogation against the at-fault driver or the at-fault driver’s insurance when required insurance was in place. PIP benefits and your liability recovery coexist — the insurance company has no claim against your settlement for reimbursement of PIP it paid.
One exception applies under § 1952.155(c): when the at-fault driver did not carry financial responsibility coverage as required by Texas Transportation Code Chapter 601, the PIP insurance company does have a subrogation right against the uninsured driver.
PIP, Health Insurance, and the Collateral Source Rule
Texas Insurance Code § 1952.155(a)(2) states that PIP benefits are payable without regard to any collateral source, which includes health or accident insurance. PIP can pay alongside health insurance on the same claim without one reducing the other. At trial, the collateral source rule prevents a jury from learning that any insurance has covered any portion of your losses, and your documented damages are presented in full regardless of what has already been paid.
Passengers, Vehicle Owners, and the Offset Provision
A specific limitation governs PIP in the context of passenger claims against the owner or operator of the vehicle they were riding in. Under Texas Insurance Code § 1952.159, when a passenger covered by PIP makes a liability claim against the vehicle’s owner or operator, the owner or operator is entitled to a credit against any award equal to the PIP benefits already paid to the passenger.
The offset does not apply to claims against third-party drivers who caused the accident. In a crash where another driver was at fault, PIP paid to a passenger in the insured vehicle has no effect on the passenger’s recovery from the at-fault driver’s liability insurance. Loewy Law Firm advises clients in passenger situations on which claims the offset applies to and which it does not, and the answer depends entirely on who the liability claim is directed at.
PIP Coverage for Vehicle Occupants
Texas Insurance Code § 1952.151 extends PIP coverage to four classes of people:
- The named insured
- Members of the named insured’s household
- Any authorized operator of the named insured’s motor vehicle
- Any passenger or guest occupant of the named insured’s motor vehicle
Coverage attaches to the vehicle’s policy and extends to anyone authorized to be in or operating the vehicle at the time of the accident, regardless of whether they carry a separate PIP policy of their own. An authorized passenger who does not own a car, or whose own policy has a rejected PIP, is still covered by the vehicle owner’s PIP. At Loewy Law Firm, occupant coverage questions arise regularly in cases where a client was injured as a passenger in someone else’s vehicle and assumed no PIP was available to them.
Disputing a Texas PIP Claim
PIP claims in Texas are evaluated under a reasonable and necessary standard. An insurance company may reduce or deny payment for treatment determined to be unrelated to the accident, charged at rates considered excessive, or not adequately documented. Disputes over income replacement claims, where employer verification is incomplete, and household services claims, where receipts are missing, are particularly common grounds for denial.
Insurance Obligations and Bad Faith Protections
Texas Insurance Code Chapters 541 and 542 govern how insurance companies are required to handle claims. Chapter 541 prohibits unfair or deceptive practices, including failing to acknowledge a claim in a timely manner, denying a valid claim without a reasonable investigation, and refusing to provide an explanation for a denial. Chapter 542 addresses the timing of payment and sets specific deadlines for claim acknowledgment and payment determination.
Policyholder Remedies for Bad Faith
Violations of Chapter 542 can entitle the policyholder to 18 percent annual interest on unpaid benefits plus attorney fees. Violations of Chapter 541 can result in actual damages, attorney fees, and up to three times the actual damages when the violation was committed knowingly. When a PIP claim is delayed or denied without a valid basis, Loewy Law Firm can evaluate whether the insurance company’s conduct rises to the level of bad faith under Texas law and advise on available remedies.
Before You Reject Texas PIP
Health insurance covers medical treatment but does not reimburse lost wages, cover funeral expenses, or pay for household services. Disability policies may address income replacement but typically carry waiting periods and may not cover self-employed or part-time workers. PIP covers all three categories with no waiting period.
MedPay is subject to subrogation and PIP is not, making PIP the preferable choice when both are available. Rejecting PIP in writing removes all three benefit categories from the policy.
Loewy Law Firm
Texas PIP questions arise at every phase of a car accident case: when treatment begins and coverage is uncertain, when the insurance company disputes the necessity of ongoing care, and when a liability settlement is reached and the no-subrogation rule determines what you keep. Loewy Law Firm handles PIP coverage across all phases, from confirming whether coverage was in place at the time of the accident to coordinating PIP with the final resolution of a third-party claim. If you have questions about PIP or have been in an accident, call Loewy Law Firm at (512) 280-0800 for a free consultation.
References and Additional Reading
https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1952.htm
https://statutes.capitol.texas.gov/Docs/IN/htm/IN.541.htm
https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm
https://statutes.capitol.texas.gov/Docs/TN/htm/TN.601.htm
The content on this website is for general informational purposes and should not be considered legal advice. Laws change, and case outcomes depend on specific facts. Viewing this material does not establish an attorney-client relationship. For legal guidance on your specific situation, consult a qualified attorney.