Personal Injury Protection (PIP)
Definition: Personal injury protection is no-fault auto coverage that pays medical expenses and 80 percent of lost income for you and your passengers after a crash, whoever caused it. Texas insurers must offer at least $2,500 in PIP, and rejection must be in writing.
Also called: PIP, PIP coverage, no-fault medical coverage
What personal injury protection means in Texas
Personal injury protection, or PIP, is first-party coverage on your own auto policy that pays regardless of fault. Under Subchapter D of Insurance Code Chapter 1952, every auto insurer in Texas must offer PIP, and the coverage is included unless the named insured rejects it in writing. The minimum amount is $2,500 per person, and higher limits such as $5,000 or $10,000 are available.
PIP covers the named insured, family members living in the household, and passengers in the covered vehicle. It pays reasonable medical expenses and 80 percent of lost income, plus the cost of replacement services for a person who was not employed but performed household duties.
How it works in practice
PIP is the fastest money after a crash. You submit medical bills and wage documentation to your own insurer, and payment is due without waiting for a fault determination. It pays whether you caused the crash or not.
The feature that sets PIP apart is in Insurance Code § 1952.155: an insurer that pays PIP benefits has no right of subrogation against the at-fault driver or that driver’s insurer. Your insurer cannot take PIP money back out of your eventual settlement. Health insurers and hospitals often can.
Why it matters in your case
Because PIP is not reimbursable, it is free money in the final accounting of an injury claim. An injured person with $2,500 in PIP and a $50,000 third-party settlement keeps both. Many people reject PIP to save a few dollars a month without understanding this. Checking the declarations page for PIP is one of the first things we do on a new auto case, along with confirming whether a written rejection actually exists.
Example
Teresa is rear-ended on Highway 71 near the airport and spends two weeks off work with a back strain. She has $5,000 in PIP. Her insurer pays her $3,200 emergency room bill and 80 percent of her lost wages within a few weeks. Eight months later the at-fault driver’s insurer settles her injury claim for $28,000. Her PIP carrier has no claim to any of it.
Frequently asked questions
Does using PIP raise my insurance rates in Texas?
Not for a crash you did not cause. Texas rate rules generally prohibit an insurer from raising premiums or canceling a policy based on a claim arising from an accident where the insured was not at fault. PIP is designed to be used, and using it after another driver hits you should not trigger a surcharge.
Can my insurance company take back PIP payments from my settlement?
No. Insurance Code § 1952.155 provides that an insurer paying PIP benefits has no right of subrogation or claim against the at-fault party or anyone else to recover those benefits. This makes PIP different from health insurance, Medicare, and hospital liens, all of which can reach a settlement.
What if I never signed a PIP rejection form?
Then you likely have PIP coverage at the minimum $2,500 even if the declarations page does not show it. Texas requires the rejection to be in writing, and an insurer that cannot produce a signed rejection generally must provide the coverage. Ask the insurer for a copy of the rejection form and keep the response.
Cite or link to this definition
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Citation
"Personal Injury Protection (PIP)." Texas Legal Glossary, SMB Law, PC, law-smb.com/legal-glossary/personal-injury-protection/. Updated October 2026.Link HTML
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This entry explains Texas law in general terms and is not legal advice for any specific situation. Statutes and case law change; the date above reflects the last review.