Bemis, Roach and Reed Legal

Your Auto Accident and Personal Injury Protection and Medical Payments Coverage

If you are involved in a car accident, you may have a right to pursue a claim with your own automobile insurance company for all or part of your damages. Your rights in this regard are dependent on what coverage you had in effect at the time of the accident. After an auto accident, you should look at a copy of the insurance policy in effect at the time of the car accident that covered you and/or the car you were in at the time of the collision in order to determine what rights you have with regard to any of this insurance. Depending on this coverage, you may have the ability to recover a portion of your medical expenses and lost wages.

Texas law requires that all automobile insurance policies include a "no fault" benefit. The benefit is "no fault" because an injured person does not have to prove someone else was negligent in order to qualify for the benefit. The "no fault" benefits are called Personal Injury Protection (PIP) and Medical Payments (Med-Pay). Your policy will contain a "no fault" benefit unless you execute a waiver declining the coverage. Some states do not allow for a waiver; Texas, however, does allow for a waiver.

If your policy includes PIP or Med-Pay coverage, you will be able to make a claim for medical expenses related to the treatment of injuries you received in the accident, up to the limits of this coverage. If you have Personal Injury Protection coverage, you may also be able to recover 80% of your lost wages related to this accident. Your combined recovery under PIP of the medical expenses and 80% of lost wages will be restricted to the limits of your PIP coverage.

WHAT IS THE DIFFERENCE BETWEEN PIP AND MED-PAY COVERAGE?

There are two significant differences between PIP and Med-Pay. PIP will cover both medical bills and 80% of any lost wages while Med-Pay only covers medical bills. The amount of coverage for a car accident injury claim depends on how much coverage you purchased. Also, PIP payments do not have to be paid back to your automobile insurance company if you make a recovery from the negligent third party. However, with Med-Pay, if you obtain a settlement from the liable party, your automobile insurance company may seek reimbursement out of your settlement for any payments they made under your Med-Pay coverage. PIP is recommended over Med-Pay. If your health insurance paid for your medical expenses, depending on the language of the plan, the health insurance company may be entitled to seek reimbursement from both PIP and Med-Pay.

• Medical expenses covered*
• 80% of lost wages covered*
• No reimbursement required if you receive a settlement from the negligent 3rd party
• All passengers have coverage

• Medical expenses covered*
• No coverage for lost wages
• Your insurance company may require reimbursement if you receive a settlement from the negligent 3rd party
• All passengers have coverage

*Total payments capped at level of coverage purchased

Austin personal injury law firm Bemis, Roach & Reed provides legal services to individuals throughout the State of Texas. If you or someone you know is in need of a qualified car accident lawyer or a Texas attorney specializing in insurance bad faith claims, call us toll free at (866) 433-4979.