Your Right to PIP and UM Coverage
I have Personal Injury Protection (PIP) and uninsured motorist (UM) coverage on my auto insurance policy. Both pay my medical bills and other damages if I am injured by an uninsured motorist. Since I pay separate premiums for my PIP and UM coverage, can I recover under both coverages for the same damages if I am injured by an uninsured motorist?
No. Historically because two premiums were paid, Texas courts allowed an injured consumer to collect both personal injury protection benefits and underinsured motorist benefits. The Texas Department of Insurance, however, has ruled that an insurance company, even though it collected a separate premium for each benefit, could offset uninsured and underinsured coverage in the amount that it paid in personal injury protection benefits. The right of the Texas Department of Insurance to change the law was ultimately upheld by the Texas Supreme Court.