In Texas, drivers are usually offered Med Pay or Personal Injury Protection coverage PIP. Drivers can buy one or the other if they so choose.
This guide is written to give an overview of the difference between Med Pay and PIP.
Medical pay coverage is actually similar to health insurance coverage for medical expenses that a victim incurs because of a car wreck. Medical payment coverage is an alternative to personal injury protection coverage.
Both personal injury protection coverage and medical payment coverage should apply to all passengers in the insured’s vehicle at the time of the crash. Both pay regardless of fault on the part of the driver. However, the other vehicle involved in the accident or the third-party defendant’s insurance company will not pay med pay or PIP benefits but only under liability coverage.
There are some key differences between PIP and met – pay coverage:
a) Personal injury protection will cover 80% of lost wages while medical payment coverage does not provide for lost income.
b) PIP has no payback provision. While medical payment coverage has a subrogation clause, which requires repayment when collecting from a third party.
For these reasons, personal injury protection is the preferred alternative over medical payment coverage. While the cost is slightly more for personal injury protection coverage the coverage is vastly superior to medical payment coverage.
Typically in Texas, the minimum coverage for personal injury protection is $2500 and consumers can buy much greater limits. Particularly for those who have medical health insurance, personal injury protection is a much better alternative.
PIP benefits can also be stacked, in that an occupant can be covered under the car policy and also under the persons own auto coverage.