PIP vs. MedPay in Texas: Which Coverage Should You Claim After a Wreck?
Your insurance adjuster may ask which coverage you want to open before the first hospital bill even arrives. If your Texas policy has personal injury protection (PIP), it is usually the better place to start. PIP pays medical bills and part of your lost income no matter who caused the crash, and your insurer generally can’t take that money back out of your injury settlement. MedPay pays medical bills only. One exception matters: if you rejected PIP in writing when you bought your policy, you won’t have it to claim.
At Tormey & McConnell, we help injured drivers and passengers in Amarillo sort out which benefits apply before they file anything. The coverage you claim first can affect how quickly your bills are paid and how much of your eventual settlement you keep. Pull out your policy’s declarations page, and if the coverage list raises more questions than it answers, our team can help you choose a plan in a free consultation.
PIP vs. MedPay at a Glance
PIP:
Included in every Texas auto policy unless you reject it in writing.
Pays medical bills and part of your lost income, or household services if you weren’t earning income.
Pays regardless of who caused the crash.
Generally can’t be recovered by your insurer from your injury settlement.
MedPay:
Optional coverage you have to add to your policy.
Pays medical bills only, with no lost income.
Pays regardless of who caused the crash.
Often includes the insurer's right to be repaid from your settlement, depending on your policy terms.
How PIP Works Under Texas Law
PIP is first-party coverage. That means you file a claim with your own insurer, not the driver who hit you. The Texas Department of Insurance’s auto insurance guide confirms that every Texas auto policy includes PIP unless you reject it in writing. If you rejected it once, your insurer doesn’t have to add it back at renewal unless you ask for it in writing.
Under the Texas Insurance Code, PIP pays reasonable expenses from the accident for:
Necessary medical, dental, ambulance, hospital, nursing, and funeral services
Income you lost because of the accident, if you were earning income
Essential household services you can no longer perform, if you weren’t earning income
Texas sets the required amount at $2,500 per person. Many policies carry exactly that, but you may have bought more. The standard Texas PIP policy form usually pays 80% of lost income, so check your own policy for the exact terms.
PIP covers more than the policyholder. It extends to members of your household and to any authorized driver or passenger in your vehicle.
What MedPay Covers and Where It Falls Short
MedPay is optional coverage that pays medical bills for you and your passengers, regardless of who caused the wreck. According to the Texas Department of Insurance, it can also apply if you’re hurt while riding in someone else’s car, walking, or biking.
The main limitation is that MedPay doesn’t replace lost wages or pay for household help. If your injuries keep you off work for weeks, MedPay won’t help with the paychecks you miss. PIP may.
Does Using Your Own Coverage Shrink Your Injury Claim?
For PIP, generally no. Texas law says an insurer that pays PIP benefits has no right to recover those payments from the at-fault driver or that driver’s insurer. That right to recover is called subrogation. There is one exception. If the at-fault driver didn’t have the insurance or other financial responsibility Texas requires, your PIP insurer can pursue that driver for what it paid.
In practice, this means you usually keep PIP money, and you can still pursue a full injury claim against the driver who caused the crash. The same law makes PIP payable regardless of other benefits, so health insurance doesn’t block a PIP claim.
MedPay works differently. The state’s PIP rules don’t govern it, and many MedPay policies give the insurer a contractual right to be repaid from your settlement. Before you resolve a car accident claim in the Texas Panhandle, find out whether your MedPay carrier expects reimbursement. That repayment can noticeably reduce what you take home.
Can You Claim Both PIP and MedPay?
Possibly. If your policy includes both coverages, you may be able to use PIP first and then turn to MedPay for medical bills that exceed your PIP limit. However, many policies include provisions that prevent the insurer from paying the same bill twice under different coverages. The answer depends on your policy wording. Read it before you assume both coverages will stack.
Order can matter too. Because PIP is usually protected from subrogation and MedPay may not be, many people use PIP first. That can limit how much of your settlement a MedPay insurer later asks you to return.
Riding as a Passenger in Someone Else’s Car
Passengers can usually claim PIP under the policy of the vehicle they were riding in. There is a tradeoff, though. If you collect PIP from the driver’s policy and later bring an injury claim against that same driver, Texas law lets the driver’s liability insurer subtract the PIP it already paid from any award.
This most often comes up when a friend or family member was driving and caused the crash. The offset doesn’t wipe out your claim, but it does change the math. Factor it in before you assume the two payments will add together.
Deadlines and Delays on a PIP Claim
Once your insurer receives satisfactory proof of your claim, Texas law requires it to pay PIP benefits within 30 days. Your policy may also set a deadline for submitting your initial proof of loss. State law doesn’t allow that deadline to be shorter than six months after the accident. Your policy may also limit PIP to expenses incurred within a set period after the crash, often three years.
If your insurer misses its payment deadline, Texas law lets you sue under the policy to recover the benefits. Before it gets to that point, send your insurer itemized medical bills and documentation of missed work early, and keep copies of everything you submit.
Pursue the Compensation You Deserve in Texas
Choosing between PIP and MedPay is rarely the only decision after a wreck. Each coverage interacts with your claim against the at-fault driver, your health insurance, and any later reimbursement demand. We review your policy, identify every source of coverage available to you, and work to keep repayment demands from consuming money you need for your recovery.
Our attorneys both earned their law degrees at Texas Tech University School of Law. Together, our attorneys have over 70 years of combined hands-on trial experience. As personal injury lawyers in Amarillo, we represent people hurt in crashes throughout Canyon, Dumas, Pampa, Hereford, Childress, and Borger, Texas. If your insurer is asking which coverage you want to use, or a MedPay carrier wants part of your settlement back, schedule a free consultation today.