What is PIP Insurance in Florida?
Miami, Florida is among states that operate on the no-fault insurance modality. It means that each person’s insurance policy is supposed to cover his/her injuries and damages regardless of who was on the wrong. However, this insurance status does not relieve drivers from carrying insurance as it is a compulsory requirement by law in Florida.
PIP can be confusing. Read on to review a comprehensive and summarized list of important PIP details.
So, what is PIP and what does it entail?
- PIP is the acronym for Personal Injury Protection.
- The Florida law requires each car owner to have at least $10,000 worth of PIP insurance cover at all times.
- The benefits are paid by your insurer once you are involved in an accident regardless of who is on the wrong. This is where the No-fault term comes into force.
- The insurance company pays 80% of hospital bills and 60% of any lost wages on the mark of your insurance value ($10,000).
- PIP cover is limited to injuries from a vehicle whether you are in the vehicle, a pedestrian or riding a bike.
There are two pillars that make up PIP insurance:
- The PIP rationale – the no-fault insurance approach actually reduces the number of small claim suits in Florida. Each insurance holder is able to settle his/her injuries and auto damages without the process of litigation against the other accident driver. Only major insurance claims (above $10,000) are supposed to be filed for a full litigation process.
- Personal Injury Protection – this protection covers both the driver and his/her passenger(s). Since every policy holder is supposed to pay for their claim, there is no delay in payouts even if the accident will undergo lengthy investigation. Each driver is given back at least what he/she needs to be back on their feet and continue with their normal life.
PIP supplementary insurance covers:
- Body Injuries and Property Damage (BI/PD) – though this is an optional cover in Florida, it adds weight to PIP especially when you are the driver at fault. PIP may not always be enough to cover your injury and property damages; this is the time when BI/PD comes to your rescue. PIP will always pay first then what is above $10,000 is taken care of by BI/PD cover.
- Uninsured Motorist, Under-insured Motorist and Uninsured Motorist Property Damages (UM/UIM/UMPD) – sometimes drivers are merely insured or uninsured at all. It is a criminal offense in Florida though if you find yourself in that situation. In this case, a driver needs UM/UIM/UMPD cover to at least get something back after an accident. The payout is usually after the accident has been fully investigated and the other driver found to be on the wrong.
Claiming PIP benefits
In the event of an accident, you need to inform your insurance company. Give as many details as you can. The payout will be released even before the accident investigation sets in.
You will not need to proof who is responsible for the auto crash. This can come later as soon as you have recuperated although you can use the services of a PI, in the meantime.
Every driver in Florida is supposed to insure against personal injury for up to $10,000. This does not mean you pay the aforementioned amount but rather, you get payment that is equal to this amount soon after you suffer injuries.
Normally, this upfront payment from your current insurance provider settles about 80 percent of hospital expenses as well as 60 percent of any lost salary. You will be compensated even if you are injured when riding a bike, as long as there is an automobile involved.
Even if you are walking along the side of the road and a vehicle moves off track and causes you bodily harm, you will still qualify for PIP.
If you find that the compensation cannot meet all your medical expenses and other bills, you can still seek settlement from the party to blame for the crash. If the party does not like an out-of-court settlement, you can move to court. If the prosecution attorneys find that the other driver is to blame, they will ask for damages on your behalf.
Statistics reveal the following trends surrounding Personal Insurance Protection in Florida:
- Car owners who pay premiums for PIP represent 2% of the total insurance payments in the state between 2012 and presently, .
- PIP compensations have risen dramatically due to an increasing number of regular automobile crashes in the state.
False claim concerns
In order to clamp down on the rising issue of false claims, the state introduced a bill in 2012, HB 119, where benefits from such cases pass on to the population at large. Currently, the state’s authorities require victims to apply for PIP if they own a vehicle. This is to ensure that your insurer pays for your immediate medical needs as soon as you get involved in a collision.
Contact Experienced PIP Attorneys
If you have been in any accident a car accident lawyer can help, even small accident that focus on PIP insurance our team will fight to make sure you get what you deserve and need.