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Last updated: September 19, 2023

PIP Insurance in Texas

PIP is included in every Texas car insurance policy, but it’s not required.

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Personal injury protection (PIP) insurance pays for the injuries, funeral costs, lost wages, and child care costs of people in your vehicle, regardless of who caused a car accident. In Texas, agents will include PIP in your policy automatically, but it’s not required, unlike liability insurance. Let’s learn more about PIP insurance in this no-fault state.

Is PIP Required Under Texas Law?

While Texas car insurance requirements do not include PIP, agents are required to offer it at the amount of $2,500 per person, and it will be included unless you reject it in writing.1 If you choose to keep it, PIP covers the following people:

  • Policyholder
  • Family members living in the same household
  • Anyone driving a vehicle with permission
  • Passengers

It pays for:

  • Reasonable accident-related medical bills and funeral expenses within three years of the accident
  • 80 percent of lost wages
  • Essential services like child care and lawn care if the injured person is unemployed2

FYI:

In contrast to PIP, medical payments coverage does not pay for lost wages or child care.

If you’re not sure if PIP coverage is right for you or how it would help you pay for medical expenses after an auto accident compared to health insurance, speak with an insurance agent or broker. They will explain how PIP insurance coverage works as well as the amount you should get, whether it’s $2,500, $5,000, or $10,000 per person. They’ll also explain how filing a claim works.

No-Fault Laws in Texas

Texas is an at-fault state, which means that in an accident, the at-fault party’s bodily injury liability pays for medical bills of those involved in an accident. The at-fault driver is also responsible for the other party’s property damages.

However, civil suits still occur after car crashes in Texas. The state has modified comparative negligence laws, which means that, in order to receive compensation, a driver must be 50 percent at fault or less. If they are 40 percent at fault, for example, they can sue the other driver, but their compensation will be reduced by 40 percent.

Minimum Car Insurance Requirements

Here are the minimum car insurance requirements in Texas, which you’ll note do not include PIP:

  • Bodily injury per person: $30,000
  • Bodily injury per accident: $60,000
  • Property damage per accident: $25,000

Discounts

To find cheap car insurance in Texas, take advantage of discounts such as:

  • Low annual mileage
  • Continuous insurance
  • Driver training course
  • Early quote/signing
  • Federal employee
  • Good student
  • Homeowner
  • Hybrid or electric vehicle
  • Military
  • Multiple vehicles
  • Multiple policies, like bundling home and auto insurance
  • New car
  • Paid-in-full
  • Safe driver
  • Student away from home
  • Vehicle equipment, like airbags and anti-theft devices

Average Cost of Car Insurance in Texas

In 2020, the last time the National Association of Insurance Commissioners released data, the average cost of car insurance in Texas was $1,085.3 This number is 4 percent higher than the national average of $1,442.

DID YOU KNOW?

One of the reasons that car insurance in Texas may be expensive, especially if you live near the coast, is because of the state’s high rate of hurricanes. From 1851 to 2020, 64 hurricanes, including 19 major hurricanes (Category 3 or above), hit Texas directly, the second most in the nation after Florida.4

Best Car Insurance Companies in Texas

Check out the best car insurance companies in Texas:

  • Best overall: Allstate
  • Best for high-risk drivers: Direct Auto
  • Best for the military: USAA
  • Best for trucks: Liberty Mutual

Recap

While PIP is optional in Texas, we recommend getting a minimum of $2,500 of coverage per person. You never know when you are going to be involved in a car accident, and whether or not you cause it, PIP applies to everyone in your vehicle. To learn more, keep reading our frequently asked questions.

Frequently Asked Questions

Does using PIP raise your insurance premium in Texas?

Yes. Having PIP would raise your insurance premium in Texas, just like any additional coverage.

Is PIP good insurance?

PIP is good insurance because it includes coverage for lost wages, child care, and lawn care if you are unable to work due to your injuries from an accident, which is not the case with medical payments coverage.

What is the downside of PIP?

The downside of PIP is that it will increase your car insurance premium compared to having liability coverage only.

How much money can I get from PIP?

The amount of money you can get from PIP is equal to the limit you set. Texas insurance policies automatically include a $2,500-per-person limit, but you may reject the coverage or get a higher limit.

Citations

  1. Auto insurance guide. Texas Department of Insurance. (2023).
    https://www.tdi.texas.gov/pubs/consumer/cb020.html

  2. Understanding PIP vs Med-Pay. Office of Public Insurance Counsel. (2020, Jan 14).
    https://www.opic.texas.gov/news/pip-vs-medpay/

  3. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
    https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf

  4. Hurricanes Frequently Asked Questions. Atlantic Oceanographic and Meteorological Laboratory. (2023, Jun 1).
    https://www.aoml.noaa.gov/hrd-faq/#landfalls-by-state