PIP and uninsured motorist coverage in Texas: what your own policy pays after a crash

After a crash, most people think about the other driver’s insurance. In many Texas claims, though, the coverage that pays first, or pays most, is on your own policy. Two coverages do most of that work: personal injury protection (PIP) and uninsured and underinsured motorist coverage (UM/UIM). Both are part of every Texas auto policy unless someone rejected them in writing. This article explains what each one does.

Why the other driver’s policy is often not enough

Texas requires drivers to carry liability coverage of at least $30,000 for injury to one person, $60,000 for two or more people and $25,000 for property damage in one collision (Transportation Code section 601.072). Many drivers carry only that, and some carry none. If the driver who hit you has a minimum policy, $30,000 is the most that policy pays for your injuries, however serious they are. Your own coverage is what fills the gap.

Personal injury protection

PIP pays reasonable expenses that arise from an accident and are incurred within three years of it (Insurance Code section 1952.151). It covers:

• Necessary medical, surgical, X-ray and dental services, including prosthetic devices, and ambulance, hospital, nursing and funeral services.
• For someone who earns an income, replacement of income lost because of the accident.
• For someone who was not earning, reasonable expenses for essential services they ordinarily performed for the household.

It covers the named insured, members of the household, and any authorized driver or passenger in the insured’s car, including a guest. It pays without regard to who caused the crash (section 1952.155), and the insurer must pay as claims arise and no later than the 30th day after it receives satisfactory proof (section 1952.156). The law does not require an insurer to provide more than $2,500 per person (section 1952.153), but higher limits are commonly sold.

Uninsured and underinsured motorist coverage

UM/UIM protects you when you are legally entitled to recover from a driver who has no insurance or not enough (section 1952.101). Underinsured coverage pays what you are entitled to recover from that driver, up to your own policy limit, reduced by what the driver’s insurer pays or must pay (section 1952.106). It can apply when you are hurt as a pedestrian or a cyclist, not only in your own car, depending on the terms of the policy.

A UM/UIM claim is a claim against your own insurer, but it is still an insurance claim: the insurer stands in the shoes of the driver who caused the crash and can dispute fault and the value of the injuries. It is handled with the same care as a claim against the other driver’s insurer.

Rejected in writing

Both coverages are required in every Texas auto policy unless a named insured rejects them in writing (sections 1952.101(c) and 1952.152(b)). Once rejected, the insurer does not have to offer them again on a renewal or replacement policy from the same or an affiliated insurer unless the named insured asks for them in writing. Many people do not remember signing a rejection when they bought the policy. If your declarations page does not list PIP or UM/UIM, ask to see the signed rejection.

Rideshare drivers and passengers

For Uber and Lyft drivers, the Insurance Code requires UM/UIM and PIP where Chapter 1952 requires them, on top of the higher liability limits for rideshare: at least 50/100/25 while the driver is logged on and waiting, and at least $1,000,000 during a ride (sections 1954.052 and 1954.053).

Five minutes with your policy

1. Find your declarations page, in the insurer’s app or the policy packet.
2. Look for personal injury protection and its limit.
3. Look for uninsured and underinsured motorist coverage, for bodily injury and for property damage, and their limits.
4. If either is missing, ask your agent whether a rejection was signed, and what it costs to add it.
5. Keep a copy where you can find it after a crash.

For what to do after a crash and how the different policies fit together, see our accident lawyer San Antonio page.