First Party Insurance Coverage in Car Accidents

March 31, 2016

Many drivers are unaware of coverage they pay for under their own automobile insurance policies. Familiarity with your policy can greatly increase your coverage if you are involved in a car accident.

Personal injury protection (PIP) covers medical, funeral, and related expenses if you are involved in an accident. It also covers 80% of lost income and the cost of hiring a caregiver for an injured person. Texas requires a minimum of $2,500 in PIP coverage unless the insured rejects the coverage in writing. PIP is recoverable regardless of who was at fault in an accident (you, a third party, or no one). Additionally, your insurance company does not have a right to recover benefits paid under PIP coverage, unless the accident was caused by an uninsured third party.

Medical payments coverage is similar to PIP. It pays for your medical and funeral expenses resulting from an accident, and applies to the driver, their family members, and passengers in a vehicle, regardless of who is at fault for the accident. If a third party is at fault for the accident, then your insurance comapny can attempt to recover (subrogate) from the third party or their insurance company.