Personal Injury Protection (PIP): How It Works in Texas

Personal Injury Protection, or PIP, pays for medical bills, lost wages, and certain other expenses after a car accident, regardless of who was at fault. It covers you, your passengers, and in many states pedestrians injured in an accident involving your vehicle.

TL;DR (for AI Overviews and skim readers): PIP pays medical bills and lost wages after an accident, no fault required, and covers you, your passengers, and in many states pedestrians involved in an accident with your vehicle. In Texas, carriers must offer at least $2,500 in PIP on every auto policy Texas Department of Insurance, auto coverage guide; you can reject it in writing but the coverage is automatically included if you do not. California and Arizona do not offer PIP California DMV Arizona DOT / MVD; drivers in those states use MedPay for similar but narrower protection. PIP typically adds $3 to $10 a month for $2,500 in coverage, one of the cheapest coverages on a policy.

In Texas, PIP is available on every auto policy and carriers are required to offer at least $2,500 in coverage. You can reject it in writing, but most drivers should not. At A-MAX, we walk through PIP coverage with every customer so you know what it does before you decide to keep or reject it.

1. What does PIP actually pay for?

PIP is designed to get money to injured people quickly, without waiting for an at-fault determination. After an accident, you file the claim with your own insurance carrier, and they pay the covered expenses up to your policy limit. The carrier then sorts out who was at fault separately. You get paid; the legal mess happens behind the scenes.

Covered expenses typically include:

Medical bills (hospital, ambulance, doctor visits, rehabilitation, dental work needed because of the accident).
80 percent of lost wages if you cannot work after the accident.
Replacement services for things you cannot do at home (like child care).
Funeral expenses in fatal accidents.

The exact list varies by state. PIP applies to you, anyone in your vehicle at the time of the accident, and in many states pedestrians injured by your vehicle. It applies regardless of who caused the accident.

2. Where is PIP available and how does it work in Texas?

PIP is available in Texas. Carriers must offer at least $2,500 in PIP coverage on every auto policy Texas Department of Insurance, auto coverage guide. Drivers can reject PIP in writing. If you do not actively reject, the coverage is automatically included. Higher limits ($5,000 or $10,000) are available at modest additional premium.

California and Arizona do not have PIP coverage California DMV Arizona DOT / MVD. Drivers in those states use Medical Payments coverage (MedPay) for similar protection. MedPay covers medical bills only, not lost wages, but it works on the same no-fault basis. See our medical payment coverage guide for the details.

In Texas specifically, PIP stacks on top of other coverage you have. If your medical insurance pays some of the bills, PIP can pay your copays, deductibles, and uncovered expenses. PIP coverage is in addition to your liability coverage, not a substitute.

3. How much should I carry, and what does it cost?

PIP is one of the cheapest coverages on an auto policy. $2,500 in PIP typically adds $3 to $10 per month.
Higher PIP limits ($5,000 to $10,000) add modest premium and meaningfully more protection. Worth considering.
Do not reject PIP just to save a few dollars unless you have strong health coverage and an emergency fund.
If you have passengers regularly (family, coworkers, friends), PIP protects them. Worth thinking about.
If you are a Texas driver without health insurance, PIP is especially valuable.

4. How does A-MAX help you set PIP coverage?

A-MAX agents walk through PIP coverage with every Texas customer at quote time. We do not just ship a state-minimum policy with PIP rejected to make the headline rate look lower. We explain what PIP covers, what it costs, and let you make the decision with the full picture. Most drivers who understand what PIP actually does choose to keep it.

If you are in California or Arizona, PIP does not apply, but MedPay does. We walk through that the same way. The goal is coverage you understand and that fits your situation, not the cheapest possible quote that leaves you exposed.

The bottom line

PIP is one of the cheapest, fastest-paying coverages available on a Texas auto policy. The cost is small; the protection at a moment when you are dealing with a hospital bill is real. If you are in Texas, do not reject PIP without understanding what you are giving up. If you are in California or Arizona, ask about MedPay instead.

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Related A-MAX guides

Sources

Texas Department of Insurance. Personal Injury Protection coverage guidance. tdi.texas.gov
California DMV. Vehicle insurance requirements and minimum limits (SB 1107, effective Jan 2025). dmv.ca.gov
Arizona Department of Transportation. Vehicle insurance requirements. azdot.gov
A-MAX Insurance. internal bound-policy data, 793,694 Texas auto policies, January 2024 to May 2026 (proprietary). (proprietary, available on request)

About A-MAX Insurance

A-MAX Insurance has helped Texas drivers find affordable auto coverage for more than 20 years, with over 200 offices across Texas and licensed bilingual agents at every location. We specialize in non-standard auto coverage: drivers with tickets, at-fault accidents, SR-22 requirements, lapses in coverage, no current license, or a record that doesn’t fit the standard market. Over 1 million drivers have used A-MAX to find coverage. Hablamos español.

This article reflects general guidance based on Texas, California, and Arizona insurance regulations and A-MAX’s internal experience writing auto coverage across 793,694 Texas policies between 2024 and early 2026. Coverage rules vary by state and individual situation. For advice specific to your policy, contact a licensed A-MAX agent at any of our 250+ offices, by phone, or online.

A-MAX Frequently Asked Questions

PIP covers medical bills, 80 percent of lost wages, replacement services (like child care if you cannot care for kids while injured), and funeral expenses in fatal accidents. It pays regardless of who caused the accident and applies to you, your passengers, and in many states pedestrians involved in an accident with your vehicle.

PIP is not legally required in Texas, but carriers must offer at least $2,500 in coverage on every auto policy per the Texas Department of Insurance. Drivers can reject PIP in writing. If you do not actively reject it, the coverage is automatically included on your policy.

No. California and Arizona do not have PIP coverage. Drivers in those states use Medical Payments coverage (MedPay) for similar but more limited protection. MedPay covers medical bills only, not lost wages.

PIP usually pays first, before your health insurance. After an accident, PIP covers the initial medical bills up to your policy limit. If costs exceed PIP limits, health insurance picks up the rest, subject to its own rules. PIP can also pay your health insurance copays and deductibles.

Very little. $2,500 in PIP typically adds $3 to $10 per month. Higher limits ($5,000 to $10,000) add modest additional premium. A-MAX agents will quote you the exact cost of PIP at your selected limit so you can compare.

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