What is PIP coverage and do I need it?

A: PIP stands for Personal Injury Protection. PIP coverage protects you if you are in an auto accident and the other driver’s coverage fails to fully compensate you for your expenses. PIP coverage will pay for your medical expenses, lost wages, and substituted services if you are no longer able to perform certain household chores. It will also compensate your family for funeral expenses in the case of your death. PIP coverage protects the policyholder, members of the policyholder’s household, and all authorized drivers and passengers in the car. In Texas, it is mandatory that the insurance company offer PIP coverage to you, but you may decline it in writing on your policy. PIP coverage is a good thing to consider because Texas only requires drivers to carry $20,000 coverage per injury. In a catastrophic accident, your medical bills and lost wages could easily exceed this number.