Two lines on your auto policy — PIP and MedPay — are the fastest money available after a crash, and most people either don’t know they have them or don’t know the difference. They look similar. They are not the same, and in Texas one of them protects you noticeably better than the other.
The short answer
Both are coverages on your own auto policy that pay regardless of who caused the crash. PIP (personal injury protection) is broader — it pays medical bills and a portion of your lost wages, and Texas law generally bars your insurer from taking that money back out of your settlement. MedPay pays medical bills only, with no wage benefit, and Texas has no statute barring reimbursement the way it does for PIP, so whether you have to pay it back depends on your policy. If you’re choosing, PIP is usually the stronger coverage. If you have both, use them.
What PIP covers
Personal injury protection pays, up to your limit and without regard to fault: reasonable medical and funeral expenses from the crash, a percentage of the income you lose because you can’t work — most Texas policies pay 80 percent of lost wages, though the exact percentage is set by your policy — and the cost of hiring someone to do things you’d normally do yourself, like childcare or housekeeping, while you’re hurt.
It covers you as a driver or passenger, your household family members, and usually passengers in your car. Texas insurers must offer PIP, and you only don’t have it if you rejected it in writing (Texas Insurance Code § 1952.152). As for how much, the statute sets a ceiling rather than a floor: § 1952.153 is titled Maximum Required Amount of Personal Injury Protection, and it provides that an insurer is not required to offer more than $2,500 per person, for all benefits in the aggregate. That cap on what must be offered is why $2,500 turns up as the default on so many policies — and it is why buying more is worth asking about, often for a few dollars a month.
What MedPay covers
Medical payments coverage pays reasonable medical and funeral expenses from the crash, up to your limit, also without regard to fault. That’s the whole list. No lost wages, no replacement services. It typically applies with no deductible and can be useful alongside a high-deductible health plan, and like PIP it generally extends to household members and passengers.
The difference that actually matters: paying it back
This is the part people don’t find out about until settlement.
For PIP, Texas Insurance Code § 1952.155(b) generally bars your insurer from subrogating — that is, from being reimbursed out of your recovery — for PIP benefits it paid. There is a carve-out in § 1952.155(c) involving an at-fault driver who didn’t have financial responsibility, so it isn’t absolute, but as a rule PIP money stays yours. That makes PIP effectively additive to your settlement rather than an advance against it.
For MedPay, there is no Texas statute that prohibits subrogation the way § 1952.155 does for PIP. Whether your carrier can seek reimbursement out of your settlement depends on your policy’s language and the circumstances. Practically, that means MedPay dollars may or may not be yours to keep, and it’s worth having someone read the actual policy before you assume either way.
Using them doesn’t hurt your claim
People hesitate to file a PIP or MedPay claim because they worry it counts against them, raises their rates, or reduces what the at-fault driver owes. It doesn’t work that way. These are no-fault benefits you already paid premiums for, filing one isn’t an admission of anything, and the at-fault driver’s liability for your full damages is unchanged. What these coverages do is keep providers paid and keep you out of collections while a liability claim takes months to develop — which also protects your credit and your ability to keep treating.
Where they fit with everything else
In most Houston crash claims the order looks something like this: PIP and MedPay go to work immediately, health insurance covers larger treatment (subject to its own reimbursement rights), a letter of protection can bridge specialist care when nothing else will — see what a letter of protection is — and the at-fault driver’s liability coverage, plus your own UM/UIM if it’s needed, resolves the whole thing at the end. The full picture is on our page about who pays your medical bills after a Texas car accident.
How to find out what you have
Pull your declarations page — the summary sheet from your insurer, usually available in the app or online portal. Look for “PIP” or “Personal Injury Protection” and “Medical Payments” or “MedPay,” each with a dollar limit next to it. If you don’t see them, ask your agent for the written rejection on file; carriers are required to have one, and if there isn’t a valid rejection the coverage question is worth pressing. And if your limits are the bare minimum, adding more is one of the cheapest upgrades on an auto policy.
Deadlines are shorter than you think
PIP and MedPay claims are governed by your policy, and policies impose their own notice and proof-of-loss deadlines that are much shorter than the two-year deadline for filing a personal-injury lawsuit in Texas (Texas Civil Practice & Remedies Code § 16.003). Report the crash to your own carrier promptly even if the other driver was clearly at fault, and keep every bill and record.
Frequently asked questions
What’s the difference between PIP and MedPay in Texas?
PIP pays medical expenses plus a portion of lost wages and replacement services, and Texas law generally bars your insurer from taking it back out of your settlement. MedPay pays medical expenses only, and Texas has no statute barring reimbursement, so whether you repay it depends on your policy.
Do I automatically have PIP in Texas?
Texas insurers must offer personal injury protection, and it’s included unless you rejected it in writing (Texas Insurance Code § 1952.152). The $2,500 figure people hear about is the most an insurer is required to offer under § 1952.153, not a guaranteed floor, and you can buy more. Check your declarations page — many people have it without realizing.
Does PIP cover lost wages?
Yes. Most Texas policies pay 80 percent of the income you lose because of crash injuries, though the exact percentage is set by your policy, along with the cost of services you can no longer perform yourself.
Do I have to pay back PIP or MedPay out of my settlement?
For PIP, Texas Insurance Code § 1952.155(b) generally bars subrogation, with a carve-out in § 1952.155(c) involving an at-fault driver without financial responsibility. For MedPay there’s no comparable statute, so reimbursement turns on your policy language.
Will using PIP or MedPay raise my rates or hurt my claim?
These are no-fault benefits you already paid for. Using them isn’t an admission of fault and doesn’t reduce what the at-fault driver owes you — it just gets your bills paid while the liability claim develops.
Not sure what coverage you actually have?
If you were hurt in a Houston crash and don’t know what your own policy covers, call Blass Law at (713) 664-4000 or request a free case evaluation. Send us your declarations page and we’ll tell you exactly what’s available to you. See also our Houston car accident lawyer page.
Reviewed by Jay Blass Cohen, founder of Blass Law PLLC — ACS-CHAL Forensic Lawyer-Scientist, certified Drug Recognition Expert, and SFST instructor, serving Houston since 2009. This article is general information, not legal or insurance advice for your situation. Prior results do not guarantee a similar outcome.