832.402.6637Free Consultation
Posted & Reviewed by Scott Armstrong - Apr 02nd 2023
When purchasing insurance, it is easy to become confused by the litany of different coverage options that are offered by the insurance company.
This blog post will explain the difference between two important, but quite different, types of coverage: Personal Injury Protection (PIP) and Medical Payments Coverage (Med Pay).
Both PIP and Med Pay provide coverage for medical expenses that arise from injuries sustained in a car accident. PIP coverage is generally more expensive but provides more benefits.
It is worth noting that insurance companies will not let consumers purchase both coverages: you must choose either PIP or Med Pay.
If you have any questions about purchasing insurance, contact the experienced personal injury lawyers at Armstrong Lee & Baker LLP today.
In this article, we will lay out the difference between personal injury protection vs medical payments in Texas.
Personal Injury Protection, or PIP, also provides coverage for medical expenses that are associated with a car accident. However, PIP insurance typically provides more coverage than one receives with Med Pay. First, PIP often extends coverage to expenses associated with physical or occupational therapy, psychiatric treatment, and other rehabilitation costs.
PIP also typically provides coverage for 80% of lost wages, a death benefit, and other nonmedical expenses that are related to the car accident.
PIP may also provide “no-fault” coverage to those who carry it, which means that an insured is entitled to use this coverage even if at fault for an accident.
Unlike Med Pay, however, the insurance company does not retain subrogation rights.
This means that if the other driver is found to be at fault, the insurance company is not entitled to reimbursement for the medical expenses that were covered under the PIP policy.
Therefore, although PIP is usually more expensive, it provides greater coverage and benefits than Med Pay offers.
Med Pay covers the “reasonable and necessary” medical expenses an insured incurs after being involved in a car accident. Reasonable expenses could include those costs associated with doctor visits, ambulance transportation, chiropractic treatments, X-rays, hospitalization, and even funeral expenses.
However, it is important to note that Med Pay cannot and does not act as a substitute for regular health insurance.
Rather, Med Pay can only be used in a very specific situation: for those medical expenses that you, or your passengers, payor incur as a result of a motor vehicle accident.
Med Pay provides “no-fault” coverage to those who carry it, which means that an insured is eligible to use this insurance regardless of whether he or she caused the accident.
Importantly, however, the insurance company retains subrogation rights on payments made under your Med Pay coverage.
This means that if an insured is not the at-fault driver, the insurance company is entitled to be paid back when the other driver’s insurance company accepts fault.
This is one reason that Med Pay coverage is generally less expensive than PIP coverage.
Dealing with the aftermath of a motor vehicle accident can be frustrating, time-consuming, and confusing.
If you were hurt in a car accident and feel that your insurance company is not looking after your best interests, or that the at-fault insurance provider is refusing to pay you the compensation you are entitled to, contact the personal injury lawyers at Armstrong Lee & Baker LLP for a consultation regarding your rights and available options.
While having PIP or Med Pay coverage is beneficial, hiring an attorney can still be advantageous in certain situations. Your attorney will be able to help with negotiating with insurance companies and ensure you receive the maximum compensation you are entitled to.
It is possible to handle insurance claims on your own but keep in mind that insurance companies have teams of adjusters and lawyers working to protect their interests.
If you found this article helpful, you may also be interested in the following:
Scott Armstrong obtains remarkable results for his clients. He has successfully tried numerous cases to favorable verdicts and reached significant settlements on his clients’ behalf, recovering millions for them. Our lawyers have 25+ years of combined experience.
Scott is known for his aggressive approach to every case. He has been recognized as a Rising Star by Super Lawyers, an accolade awarded to only 2.5% of attorneys under forty and practicing for less than ten years. Houstonia Magazine, H-Texas Magazine, and others have recognized Scott as a “top lawyer” in Houston.
This page has been written, edited, and reviewed by a team of lawyers following our comprehensive editorial guidelines. Our lawyers have more than 20 years of legal experience as personal injury attorneys.
The Texas Tribune reports that the Texas Water Development Board found that almost six million Texans, or about 20% of the population, live in an area susceptible to f...
Posted by Scott Armstrong
A first-party insurance claim involves filing a claim directly with your own insurance company for damages or losses. This type of claim typically covers incidents af...
Posted by Scott Armstrong
Accidents can happen anywhere—on the road, at work, or at the grocery store. Whether the accident is a motor vehicle accident or a slip-and-fall, it can have deva...
Posted by Scott Armstrong
We are available 24/7 to speak with you
Trusted Personal Injury Attorneys in Houston
Find out if you have a case or ask us a question
by filling out the form below or call us at 832-402-6637
Call
Message
Chat
Schedule