At Orange Law, we’ve seen firsthand how confusing and frustrating it can be to deal with insurance coverage after a car accident. Personal Injury Protection (PIP), also known as “no-fault insurance,” is one of the most misunderstood parts of an auto policy. Yet, it can be the difference between getting immediate medical help and being left with out-of-pocket bills after a crash.
As Houston injury lawyers and Phoenix injury lawyers, we regularly guide clients through the maze of insurance policies, medical billing, and liability issues that follow a serious collision. Understanding your rights under PIP coverage—and knowing its limits—can help you recover faster and protect your financial well-being after an accident.
In this comprehensive guide, we’ll break down what PIP is, what it covers, how it differs between states like Texas and Arizona, and how our law firm helps clients maximize their recovery under this critical benefit.
What Is Personal Injury Protection (PIP)?
Personal Injury Protection is a type of insurance coverage that pays for medical expenses, lost wages, and certain other costs that result from a car accident—regardless of who was at fault.
That last part is key. PIP is considered “no-fault” coverage. It means that even if another driver caused your accident, your own insurance policy may step in immediately to cover your initial medical expenses and lost income. This can help you get necessary care without waiting months for an at-fault driver’s insurer to accept responsibility.
However, the exact coverage, benefits, and limits of PIP depend heavily on where you live and the terms of your policy. In Texas, PIP is automatically included in every auto policy unless you reject it in writing. In Arizona, PIP isn’t mandatory, but medical payments coverage (often called “MedPay”) can serve a similar function.
How PIP Coverage Works After an Accident
Let’s imagine you’ve been rear-ended at an intersection in Houston or involved in a multi-car collision on I-10 in Phoenix. You’re injured, your car is damaged, and you need medical treatment.
If you carry PIP coverage, your own insurance company immediately becomes responsible for covering your medical expenses up to the limits of your policy. Typically, this means:
- Medical bills from hospitals, clinics, or rehabilitation facilities.
- Lost wages if your injuries prevent you from working.
- Funeral expenses in fatal accident cases.
- Essential household services you can’t perform due to your injuries, like childcare or cleaning.
Unlike traditional liability claims, you don’t have to prove who caused the accident to access these benefits. That’s what makes PIP coverage so valuable—it provides quick relief when you need it most.
PIP Coverage in Texas
As Houston personal injury lawyers, we often explain that Texas requires insurance companies to offer PIP coverage to every driver, but it isn’t mandatory to purchase it.
By law, all Texas auto insurers must include at least $2,500 in PIP coverage in every policy unless you reject it in writing. You can also choose higher limits, such as $5,000, $10,000, or more.
What Texas PIP Covers
- Medical expenses: Hospital visits, surgeries, physical therapy, medications, and rehabilitation costs.
- Lost income: If you’re unable to work due to injuries, PIP can cover a portion of your lost wages.
- Non-medical costs: Transportation to medical appointments, household help, and even funeral costs.
PIP coverage applies to you, your family members, and passengers in your vehicle, as well as any pedestrian or cyclistinjured by your car.
Even if you already have health insurance, your PIP benefits can help fill coverage gaps—especially if you face deductibles, copayments, or network restrictions.
IS PIP INSURANCE MANDATORY IN TEXAS?
The law in Texas requires insurers to offer PIP coverage, but motorists are not required to accept it. Drivers can decline PIP by signing a waiver, but if they don’t, the coverage will be added to their auto policy automatically.
Since Texas is an at-fault state, drivers must carry minimum liability because they can be sued for economic and non-economic damages after an accident.
PIP Coverage in Arizona
Arizona operates under a fault-based insurance system, meaning the at-fault driver’s insurance usually pays for damages. However, many Arizona drivers still choose to carry Medical Payments Coverage (MedPay) or PIP-style add-ons to ensure faster compensation after a crash.
As Phoenix injury lawyers, we frequently recommend that Arizona drivers purchase MedPay or PIP-type coverage even though it’s optional.
How Arizona PIP or MedPay Helps
- Immediate medical payment: MedPay covers your medical bills right away, regardless of fault.
- No deductible or copay: You can use this coverage in addition to your health insurance.
- Covers passengers: Anyone injured in your vehicle can receive medical benefits.
MedPay in Arizona doesn’t typically cover lost wages or essential services, unlike Texas PIP, but it still provides vital support in the early stages after a collision.
How to Use Your PIP Coverage
If you’ve been injured in a crash in Houston or Phoenix, you should file a PIP claim immediately with your own insurance company. You’ll typically need to provide:
- A copy of the accident report.
- Medical bills and treatment records.
- Proof of lost income (pay stubs or employer letter).
- Receipts for related expenses.
Your insurer will then pay your eligible expenses up to your coverage limit. If your costs exceed that amount, you can still pursue compensation from the at-fault driver through a personal injury claim.
Common Mistakes People Make With PIP Claims
Over the years, our firm has handled countless car accident cases involving PIP coverage. Unfortunately, many victims unknowingly reduce or forfeit their benefits because of common mistakes, such as:
- Failing to notify the insurer promptly. Most PIP policies have strict reporting deadlines.
- Not keeping detailed records. Every receipt, invoice, or medical note matters.
- Assuming PIP replaces other claims. PIP is just the beginning—you may still recover pain and suffering damages from the at-fault driver.
- Signing insurance releases too early. Always consult with a Phoenix injury lawyer or Houston injury lawyerbefore signing documents that could waive your rights.
We always remind clients that insurers aren’t on your side—they’re businesses trying to limit payouts. Having experienced counsel ensures you receive every dollar you’re entitled to.
PIP Limits: How Much Is Enough?
The biggest mistake many drivers make is settling for minimum coverage.
In Texas, the default PIP limit of $2,500 often doesn’t come close to covering the real cost of a serious accident. Emergency room visits, ambulance fees, and diagnostic scans alone can easily exceed that amount.
We often advise clients to consider raising their PIP coverage to at least $10,000 or more. The extra few dollars per month in premiums can provide thousands in additional protection when you need it most.
In Arizona, MedPay limits are also flexible. Choosing a higher limit—like $5,000 or $10,000—ensures your medical providers are paid faster, reducing the financial pressure after an accident.
Why You Still Need a Lawyer Even With PIP Coverage
You might wonder—if PIP pays no matter who’s at fault, why hire a lawyer? The answer is simple: PIP doesn’t cover everything.
PIP may handle your immediate bills, but it won’t pay for:
- Pain and suffering.
- Emotional distress.
- Long-term disability or reduced earning capacity.
- Vehicle damage.
Once your PIP benefits are exhausted, your next step is pursuing compensation from the negligent driver’s insurance company. This is where our Houston injury lawyers and Phoenix injury lawyers step in.
We build your claim, negotiate with insurance adjusters, and if necessary, file a personal injury lawsuit to recover full compensation for your losses.
Even small errors—like missing a filing deadline or undervaluing your damages—can cost you thousands. Our team ensures every detail is handled correctly from day one.
How PIP Coordinates With Health Insurance and Workers’ Comp
PIP can work alongside your health insurance or workers’ compensation, depending on the nature of your accident.
- If you were driving for work: Workers’ compensation may apply first, but PIP can still cover additional costs.
- If you have health insurance: PIP can cover deductibles, copays, and services not fully covered by your plan.
- If you don’t have health insurance: PIP may be your only immediate source of medical payment coverage.
Insurance coordination can get complicated fast, especially if multiple policies are involved. We help clients organize their benefits and prevent overlapping or denied claims.
| Personal Injury Protection (PIP) | Liability Insurance |
| Covers the medical expenses from an accident for anyone in the policyholder’s vehicle no matter who is at-fault | Covers medical expenses of a third-party if the policyholder is at-fault |
| Required in 16 states | Required in all states |
| Does not cover property damage | Covers property damage to a third-party’s property if the policyholder is at-fault; does not cover damage to your property |
PIP and Subrogation: Understanding Reimbursement Claims
Subrogation happens when your insurance company pays your PIP benefits and then seeks reimbursement from the at-fault driver’s insurer once liability is established.
While this process happens behind the scenes, it can affect your total recovery amount. Our attorneys monitor these claims closely to ensure that insurance companies don’t take more than they’re legally entitled to.
In some cases, we can negotiate reductions in subrogation liens—putting more money back in your pocket after your case settles.
Dealing With Insurance Companies After an Accident
Insurance companies often appear sympathetic at first, but their goal is to minimize payouts. They may delay, deny, or undervalue your claim.
As experienced Houston and Phoenix personal injury lawyers, we handle all communication with insurers to protect your interests. We know their tactics—recorded statements, lowball offers, and confusing paperwork—and we don’t let them take advantage of our clients.
With Orange Law Firm by your side, you can focus on healing while we handle the legal and financial details.
Steps to Take After a Car Accident
To protect your PIP benefits and any future legal claim, we recommend taking these steps immediately after a crash:
- Call 911 and get medical help. Always prioritize your health, even if you think you’re fine.
- Notify your insurance company. Report the accident and ask about your PIP coverage.
- Keep all documentation. Save medical records, bills, and proof of missed work.
- Don’t give statements to other insurers. Speak with your attorney first.
- Contact Orange Law Firm. The sooner we’re involved, the stronger your case will be.
Our legal team offers free consultations for car accident victims in both Houston and Phoenix, and we only get paid if we win your case.
Understanding Personal Injury Protection is essential for every driver. It’s the first layer of financial safety after a crash—but it’s not a substitute for skilled legal guidance.
Your PIP coverage can help pay immediate bills, but only an experienced Houston injury lawyer or Phoenix injury lawyer can ensure you recover everything you’re owed from the at-fault driver and their insurer.
If you’ve been injured in a car accident, don’t wait. Contact Orange Law Firm today for a free consultation. Let us review your insurance coverage, explain your options, and help you pursue the maximum compensation under Texas or Arizona law.
📞 713-885-9787
Serving clients throughout Houston, TX and Phoenix, AZ
