What is PIP Insurance?

In the event of a car crash, dealing with the aftermath can be overwhelming, especially when it comes to injuries and medical expenses. Thankfully, for Florida motorists, there’s a protection in place: Personal Injury Protection (PIP) insurance. 

This type of car insurance provides financial relief for personal injuries sustained in a vehicular accident, regardless of who is at fault. Florida law mandates that all drivers carry PIP insurance, per Florida Statute 324.021. 

Is Florida a No-Fault State?

Yes, Florida is classified as a no-fault state when it comes to car accidents. While originally enacted in 1971, the Florida Motor Vehicle No-Fault Law was re-enacted and revised by the Florida Legislature in 2007 to help control medical costs. The No-Fault Law means that after a car accident, each driver’s insurance policy is responsible for covering their own injuries and damages, regardless of who was at fault for the incident. 

In essence, drivers turn to their own insurance coverage first for claims. This system aims to reduce the number of lawsuits filed over car accidents by having parties rely on their own insurance. 

What Does PIP Insurance Cover

Personal Injury Protection, or PIP insurance, is designed to provide immediate financial assistance for medical bills and other related expenses without the need to establish fault in an auto accident. This coverage is a key part of Florida’s no-fault insurance system, offering a blanket of financial security to drivers and passengers. PIP insurance covers a range of expenses, including medical costs, lost wages, and death benefits.

What Medical Costs are Covered by PIP?

PIP insurance in Florida covers various medical expenses to ensure that individuals involved in a car accident receive the medical care they need without delay. These covered costs include, but are not limited to:

• Emergency medical services: Costs for services like ambulance rides, emergency room visits, and urgent medical evaluations are covered under PIP.
• Continued medical treatment: Expenses for necessary medical procedures, surgeries, X-rays, dental services, and rehabilitation costs fall under the umbrella of PIP coverage.
• Medications: Prescription drugs required for the treatment of injuries resulting from the auto accident are also covered.
• Diagnostic services: Necessary diagnostic tests, such as MRI scans, are included in PIP coverage to aid in the effective treatment of injuries.

Keep in mind Florida’s PIP coverage requires treatment to commence within 14 days of the accident to be eligible for benefits.

Does PIP Cover Lost Wages?

In addition to medical expenses, PIP insurance provides coverage for lost wages, offering financial relief to those unable to work due to injuries sustained in an auto accident. This aspect of PIP insurance acknowledges the financial strain that lost work time can cause, ensuring that individuals can focus on their recovery without the added stress of lost income. 

The coverage typically compensates a percentage of the lost wages, up to the limit of the policy, during the period of recovery. Moreover, PIP may also offer a death benefit, which can cover funeral expenses for the families of those who tragically lose their lives in auto accidents.

Who is Covered by PIP Insurance?

PIP insurance extends its coverage beyond just the policyholder in the event of a car accident. Those who are covered under this policy include:

• Policyholder: Naturally, the individual holding the PIP policy is covered for injuries regardless of whether they were the driver or a passenger at the time of the accident.
• Relatives residing in the policyholder’s household: Family members living in the same household as the policyholder are covered by PIP insurance, even if they were in another vehicle or injured as pedestrians.
• Passengers: Individuals riding in the policyholder’s vehicle who do not have their own PIP insurance and are not covered by a household member’s policy receive protection under the policyholder’s PIP.
• Authorized drivers: If someone else was driving the policyholder’s vehicle with permission at the time of the accident, they, too, are covered under the owner’s PIP insurance.

What is the Time Limit for PIP Insurance?

When it comes to using your PIP insurance, time is of the essence. The state law stipulates specific time constraints within which individuals must act to receive PIP benefits:

• Medical Treatment: To qualify for medical benefits under PIP, individuals must seek initial medical care within 14 days of the auto accident. This window ensures that injuries are promptly addressed and related to the accident. 
• Claim Filing: The timeframe for filing a PIP claim is dictated by your insurance policy’s terms, typically requiring notice “as soon as practicable” or within a set number of days after the accident. It’s imperative for policyholders to review their policy details or consult with a legal professional to understand the specific deadlines applicable to their situation.

Adhering to these time limits is crucial for ensuring that PIP benefits can be accessed when needed. Failure to comply with these deadlines may result in the denial of coverage for medical costs and other benefits that PIP insurance is designed to provide. As such, individuals involved in an auto accident should prioritize seeking medical attention and notifying their insurance provider to protect their right to benefits.

When Does PIP Insurance Payout?

After the initial medical treatment has been sought within the requisite 14-day window and a claim has been filed, PIP insurance typically begins to payout relatively quickly, in comparison to traditional fault-based claims. The exact timing can vary based on the specific procedures of the insurance provider but is generally within 30 days to ensure that policyholders receive the necessary funds to cover medical treatments and any applicable lost wages without delay. It’s important for policyholders to submit all required documentation quickly and to follow up with their insurance company to facilitate the timely processing of their claim.

What is the Minimum PIP Coverage?

In Florida, the state requires that all drivers carry a minimum amount of Personal Injury Protection (PIP) insurance to adhere to the state’s no-fault system. The minimum PIP coverage required is $10,000 for bodily injury per person.

This basic coverage is intended to cover up to 80% of medical expenses and 60% of lost wages due to the injuries from an auto accident, alongside fully covering the cost of services that might be needed if the injured party can no longer perform certain tasks due to their injuries. While these are the minimum requirements, drivers have the option to purchase higher limits of coverage to ensure greater financial protection.

Will a PIP Claim Impact My Rates?

Filing a claim under your PIP insurance is a concern for many policyholders, primarily due to worries about increases in insurance premiums. In Florida, since PIP is a mandatory part of your car insurance designed to cover your injuries regardless of fault, insurers are not typically allowed to raise your insurance rates solely for making a PIP claim. 

This rule is in place to ensure that drivers do not hesitate to seek necessary medical treatment or file a claim for fear of financial penalties. However, it’s important to note that auto insurance premiums can be influenced by a range of factors, including the overall claim history, the number of accidents in the area, and changes in the policyholder’s driving record. Thus, while a single PIP claim may not directly affect your rates, the broader context of your insurance profile and regional trends could influence future premiums.

Consulting with a personal injury lawyer after experiencing a car accident can be a pivotal step towards understanding your rights and benefits under PIP insurance. At Fine, Farkash & Parlapiano, P.A., we specialize in handling PIP insurance claims in Gainesville, Florida. Our team is dedicated to ensuring you receive the compensation you deserve. Reach out to us for a complimentary, obligation-free consultation today. 

Sources: 

324.021 Definitions; minimum insurance required. | The Florida Legislature

Personal Injury Protection (PIP) | The Florida Senate

Florida Insurance Requirements | Florida Highway Safety and Motor Vehicles