What to Know About McKinney Personal Injury Protection Coverage

There are certain things that everyone should know about personal injury protection coverage or PIP. Personal injury protection is a form of insurance that pays out to a policyholder if they are involved in a truck wreck and suffer medical damages or lost wages. Crucially, PIP coverage compensates a policyholder regardless of who was at fault in an accident.

A significant benefit of personal injury protection is that it is relatively easy compensation to recover. The injured person typically does not even need a lawyer to collect most of their PIP most of the time. Occasionally, the insurance company will balk its payment under the PIP policy. When that happens, they expose themselves to bad faith litigation and litigation under their insurance code, which could be very painful for them. A seasoned truck accident lawyer could inform you about what to know about McKinney personal injury protection coverage.

Personal Injury Protections and Med Pay

State law mandates that if an insurance company sells insurance to a customer, the customer must receive personal injury protection coverage unless they actively elect not to receive it.

There is a difference between PIP and Med Pay. Med Pay is a lesser form of PIP coverage that allows the insurance company of the injured person to subrogate or take part in the recovery the injured party makes against the person or company that harmed them. PIP does not allow this subrogation. Many insurance companies want customers to purchase Med Pay rather than PIP. Med Pay is good for the insurance company in that it lessens their necessary payout, but it may be bad for the injured person, in that Med Pay could reduce their total compensation.

Amount of Personal Injury Protection Coverage

The state mandatory minimum for PIP coverage in Texas is $2,500. That is not much money, and many people choose to buy more than the minimum PIP. It is common to see $5,000 and $10,000 PIP policies in Texas. Generally, a policyholder should obtain as much PIP coverage as their state allows. In other states, PIP policies could be huge. In New Jersey, for instance, there was recently a case that paid out a million dollar PIP policy. Collecting PIP in those states is different than collecting in Texas.

Other factors apply, but PIP could be a significant source of recovery if offered by an insurance company in large amounts. Even when PIP coverage is offered in smaller amounts, a policyholder may be able to seek reimbursement quickly. The advantage of PIP is that it could provide the claimant with money in the immediate aftermath of a wreck, while they may still be trying to grasp the severity of their injuries. For more information about what to know about McKinney personal injury protection coverage, contact a skilled attorney.

How an Attorney Could Help

If you are purchasing an insurance policy, be sure to examine the relevant personal injury protection coverage so that you know where you stand in the event of an unforeseen accident. If personal injury protection coverage is insufficient to cover the costs of your damages, consider reaching out to a lawyer to pursue further compensation. An attorney could inform you about what to know about McKinney personal injury protection and how you could recover compensation. Call today.