Why You Need UM/UIM and PIP Coverage.

Texas law only requires drivers carry $30,000 in auto liability insurance. It’s been that way since the 70s. It’s not going up any time soon. $30,000 doesn’t go very far. Think about it: you’re in a bad car wreck because a drunk driver ran a stop sign and t-boned your car. You go to the ER, but your shoulder keeps hurting from the impact. You go see an orthopedic specialist who orders an MRI. The MRI shows a rotator cuff tear and recommends surgery. Those bills add up quick: the ER hospital, the emergency physician group, the radiological imaging facility, the orthopedist, the surgery center, the anesthesiologist, etc. Pretty soon you’re exceeding that $30k in medical bills alone. Not to mention your non-economic damages like physical pain and impairment.

This is why you need UM/UIM and PIP coverage. UM/UIM stands for uninsured/underinsured motorist coverage. UM/UIM is mandatory for Texas insurance policies unless you specifically reject it. Which most people do because it costs a little more. But if you find yourself in the situation described above, you’re going to be very grateful you spent an extra few bucks a month. UM/UIM policies cover you if you’re in a car wreck caused by an uninsured driver or—like the situation above—where your damages exceed the limits of the at-fault driver’s liability insurance. Well worth a couple of extra bucks a month. So, in the situation described above, if you have a $100,000 UM/UIM policy, there’s now $130,000 in available insurance (instead of only $30,000). 

PIP is similar. It stands for personal injury protection. Like UM/UIM, PIP is mandatory unless you specifically reject it. Which most people do because it costs a little more. But if you are in a car wreck—regardless of who caused it—PIP covers medical bills up to the stated policy amount (the minimum PIP limits are $2,500 and go up from there). The real beauty of PIP is that (at least in Texas (not in other states like Washington)) you don’t have to pay it back. Say that you’re in a car accident like the situation described in the first paragraph. You are allowed to recover your PIP in addition to recovering those expenses from the at-fault driver’s insurance policy. So, in the situation described above, if you have a $10,000 PIP policy in addition to your $100,000 UM/UIM policy, there’s now $140,000 in available insurance (instead of $30,000). Just for a little bit more every month.

In my experience, I’ve had many clients seriously regret rejecting PIP and UIM. I’ve never had a single client regret spending the extra few dollars per month for PIP and UIM. It’s a no-brainer. Make sure you have PIP and UM/UIM coverage well in excess of the minimum limits.