Car accidents can happen in the blink of an eye—and when they do, medical bills, lost wages, and financial stress can follow just as fast. In Texas, drivers often rely solely on liability insurance, assuming it will cover all expenses. However, that’s a risky gamble. Without Personal Injury Protection (PIP), Medical Payments (MedPay), or Uninsured/Underinsured Motorist (UM/UIM) Coverage, you could be left paying thousands out of pocket—even if the accident wasn’t your fault.
At JML Injury Law, we’ve helped countless Texans recover after auto accidents, and we’ve seen firsthand how critical these optional insurance coverages can be. This guide explains the importance of PIP, MedPay, and UM/UIM coverage—and why having them can make all the difference in a personal injury case.
What Is Personal Injury Protection (PIP) in Texas?
Coverage Overview
Personal Injury Protection (PIP) is an optional add-on to your auto insurance policy in Texas, but it provides immediate financial relief after an accident—regardless of who was at fault. What PIP Covers:
- Medical expenses
- Lost wages (up to 80%)
- Funeral costs
- Essential household services (e.g., childcare, cleaning)
Why PIP Matters
Texas insurance providers are legally required to offer PIP coverage, and if you choose to reject it, you must do so in writing. Many people waive this option to save money on premiums—but that choice can prove extremely costly after an accident.
At JML Injury Law, we recommend every Texas driver carry at least the minimum $2,500 in PIP coverage, with many of our clients choosing $5,000 to $10,000 or more.
Key Benefit: PIP pays quickly—often before fault is determined—giving injured drivers and passengers immediate access to medical care and financial support.
What Is MedPay and How Is It Different from PIP?
MedPay Basics
Medical Payments (MedPay) coverage is another optional type of auto insurance that helps pay for medical expenses after an accident. MedPay Covers:
- Emergency room visits
- Hospitalization
- Surgery and follow-up care
- Ambulance fees
- Prosthetics and rehabilitation
MedPay vs. PIP: Key Differences
While both cover medical costs, there are some important distinctions:
| Feature | PIP Coverage | MedPay Coverage |
| Covers lost wages | Yes | No |
| Covers essential services | Yes | No |
| Requires fault determination | No | No |
| Reimbursement required? | No (typically) | Possibly (subrogation) |
Subrogation Warning: Some MedPay policies require reimbursement if you recover damages from another party, which means you may need to pay your insurer back from your settlement. This is why PIP is often preferred when available.
What Is Uninsured/Underinsured Motorist Coverage?
Why UM/UIM Coverage Is a Must in Texas
Texas has one of the highest rates of uninsured drivers in the country. In fact, it’s estimated that 1 in 8 drivers in Texas is uninsured. Even more are underinsured, meaning their policy limits won’t come close to covering your medical bills or property damage.
Uninsured Motorist (UM) coverage protects you when:
- The at-fault driver has no insurance
- You’re involved in a hit-and-run
Underinsured Motorist (UIM) coverage kicks in when:
- The other driver has insufficient coverage to pay for your total damages
What UM/UIM Covers:
- Medical bills
- Lost wages
- Pain and suffering
- Funeral expenses
- Vehicle damage (if you have UMPD)
Real-Life Scenarios: When These Coverages Matter
Scenario 1: Hit-and-Run on a Texas Highway
You’re rear-ended on I-35 at high speed. The other driver speeds off before police arrive, and their identity is never confirmed. Thanks to your uninsured motorist coverage, your medical expenses and car repairs are fully covered.
Without UM coverage? You’d be stuck paying out of pocket or relying on your health insurance.
Scenario 2: Rear-Ended by an Underinsured Driver
You’re hit by a distracted driver who carries only the state minimum liability coverage ($30,000 per person, $60,000 per accident). But your medical bills total $75,000.
With underinsured motorist coverage, your own policy fills in the $45,000 gap—without you needing to sue the at-fault driver personally.
Scenario 3: Passenger Injured in a T-Bone Crash
As a passenger in a friend’s vehicle, you’re seriously injured in an intersection accident. The at-fault driver is underinsured, and your friend’s MedPay kicks in to cover your ER visit—followed by your own UM policy covering long-term rehab costs.
Texas Insurance Minimums and Their Shortcomings
Texas law only requires drivers to carry 30/60/25 liability coverage:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage
These amounts rarely cover the full cost of a serious crash, especially one involving hospital stays, surgery, or permanent injuries. In such cases, your own PIP, MedPay, or UM/UIM coverage may be your only line of financial defense.
How These Coverages Affect Your Personal Injury Claim
Strengthening Your Claim
Having PIP or MedPay allows your personal injury lawyer to demonstrate documented medical costs early, strengthening your case for full compensation from the at-fault party.
Minimizing Delays
UM/UIM coverage prevents delays in treatment or financial hardship while you wait for liability to be settled or litigated. Your lawyer can still pursue damages from the at-fault party, but you won’t have to pause your recovery due to unpaid bills.
Reducing Pressure to Settle Low
When you have access to these coverages, you’re less likely to feel forced into accepting a low settlement out of desperation. That gives your legal team time to build a stronger case and pursue maximum compensation.
What Happens If You Don’t Have PIP, MedPay, or UM/UIM?
Without these coverages, you may have to:
- Pay out-of-pocket for medical care
- Rely on private health insurance (with deductibles and co-pays)
- Wait months or years for a lawsuit to resolve
- Accept lower settlements due to financial pressure
- Miss out on reimbursement for lost wages or future medical needs
This is why we strongly recommend that Texas drivers review and update their insurance policies annually to include PIP and UM/UIM coverage.
Frequently Asked Questions
Is PIP Required in Texas?
No, but insurers must offer it, and you must reject it in writing if you choose not to carry it.
Can I Carry Both PIP and MedPay?
Yes, but PIP is often considered more comprehensive due to its wage and essential services coverage. However, carrying both can provide an extra layer of protection.
How Much UM/UIM Coverage Should I Carry?
We recommend carrying at least the same amount of coverage as your liability limits. Many of our clients opt for $100,000 or more to ensure protection against catastrophic accidents.
Protecting Yourself Before an Accident Happens
At JML Injury Law, we’ve seen too many hardworking Texans suffer because they lacked the right insurance coverage. Whether you’re dealing with an uninsured driver, waiting on a slow insurance company, or trying to recover from serious injuries—having PIP, MedPay, and UM/UIM coverage can dramatically improve your outcome. Don’t wait until after an accident to find out you’re underprotected. Review your policy now, and if you’ve been injured in an accident, contact our team for a free consultation.