If I Have Health Insurance, Do I Still Need PIP on My Auto Insurance?
What Is the Difference Between PIP and Health Insurance?
Shanti
9/14/20263 min read
If I Have Health Insurance, Do I Still Need PIP on My Auto Insurance?
If you have good health insurance, you may have this question when purchasing auto insurance: “If I already have Health Insurance, why should I also pay for Personal Injury Protection, or PIP?”
At first glance, these two types of coverage may seem similar because both can help with medical expenses.
However, PIP and Health Insurance are not the same, and the difference goes beyond simply paying hospital bills.
What Is PIP?
Personal Injury Protection, or PIP, is part of an auto insurance policy that can help pay certain expenses for you and other covered individuals if you are injured in an auto accident, up to the limits of your policy.
Depending on your policy and state laws, PIP may cover medical expenses as well as certain costs that Health Insurance typically does not cover.
What Is the Difference Between PIP and Health Insurance?
Health Insurance is primarily designed to help pay for medical care.
For example, if you go to the Emergency Room after an accident, need testing, are admitted to the hospital, or require follow up treatment, your Health Insurance may cover part of those expenses according to the terms of your Plan.
However, you may still be responsible for a Deductible, Copay, Coinsurance, or other out of pocket expenses.
PIP, on the other hand, is specifically designed for injuries related to auto accidents and may provide benefits for certain financial losses in addition to medical expenses.
What Happens If You Cannot Work After an Accident?
This is where one of the important differences between PIP and Health Insurance becomes clear.
Imagine that you are injured in an accident and your doctor says you cannot work for a period of time.
Your Health Insurance may help pay for your medical treatment, but it generally does not replace the income you lose because you are unable to work.
Depending on the terms of the coverage, PIP may provide benefits for a portion of Lost Wages resulting from injuries sustained in an auto accident.
Therefore, having Health Insurance does not necessarily mean that PIP has no value for you.
PIP May Cover More Than Just the Driver
Another important consideration is that PIP may provide coverage for the driver and covered passengers who are injured in an accident.
For this reason, when evaluating PIP coverage, you should not look only at your own Health Insurance.
The needs of your family and the people who regularly ride in your vehicle may also be important.
How Does PIP Work in Texas?
In Texas, auto insurance companies are required to offer PIP coverage. If you do not want this coverage, you must reject it in writing.
PIP in Texas may provide benefits for medical expenses for you and your passengers, as well as Lost Wages and certain nonmedical expenses resulting from an accident.
For this reason, before rejecting PIP simply because you already have Health Insurance, it is important to understand what your Health Insurance would pay after an auto accident and which expenses could still be your responsibility.
Are PIP and Medical Payments Coverage the Same? No.
PIP and Medical Payments Coverage, also known as MedPay, have some similarities because both can help with medical expenses resulting from an accident. However, PIP is generally broader.
MedPay primarily focuses on medical expenses, while PIP may also provide benefits for Lost Wages and certain essential services you are unable to perform because of your injuries.
If I Have Good Health Insurance, Should I Remove PIP? Not necessarily.
Before making that decision, it is important to consider your overall financial situation rather than looking only at your Health Insurance card. Ask yourself:
What is my Health Insurance Deductible if I am injured in an accident?
What would happen to my income if I could not work for several weeks?
Do I have enough savings to handle unexpected expenses?
What coverage would be available if a family member or passenger in my vehicle were injured?
PIP is not designed to replace Health Insurance.
The two types of coverage serve different purposes and, in some situations, can work together to provide additional financial protection.
Review Your Coverage Before Rejecting PIP
When purchasing auto insurance, lowering your Premium can always be tempting.
However, removing coverage simply to reduce the price, without understanding what that coverage provides, can make a significant difference after an accident.
Before rejecting PIP, consider the amount of coverage available, the terms of your Health Insurance, your ability to pay unexpected out of pocket expenses, and the potential financial impact of losing income because of an injury. Sometimes the most important question is not:
“Do I have Health Insurance?”
A better question is:
“If I am in an accident tomorrow, which expenses will my insurance cover, and which expenses will I have to pay myself?”
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