Texas Property and Casualty License Practice Exam

Which benefit does Texas Personal Injury Protection (PIP) provide?

1. Coverage for only insured drivers

2. Medical and funeral expenses

3. Coverage only if you were at fault

4. Exclusively for funeral services

The correct answer is: Medical and funeral expenses

Texas Personal Injury Protection (PIP) is designed to provide essential benefits that aid in covering medical and funeral expenses resulting from car accidents, regardless of who is at fault for the incident. This means that PIP not only addresses medical bills that arise from injuries sustained in an automobile accident but also can cover associated costs like funeral expenses for the insured or their passengers. The comprehensive nature of PIP is particularly beneficial in ensuring that individuals receive prompt medical attention without needing to determine fault immediately. This type of coverage provides a safety net that can alleviate the financial burden experienced after an accident by covering expenses like hospitalization, rehabilitation, and even lost wages in some scenarios. In contrast, other options do not encapsulate the full range of benefits offered by PIP. For example, limiting coverage to only insured drivers or restricting benefits to situations where the insured is at fault fails to align with the core purpose of PIP, which prioritizes support for all injured parties. Similarly, confining the coverage exclusively to funeral services does not reflect the broad scope of medical and related expenses that PIP is intended to address.