Under Florida law, anyone who owns a motor vehicle registered in the state of Florida must purchase Personal Injury Protection (also known as PIP or “no fault insurance”). PIP Insurance differs from bodily injury coverage because it will cover your care regardless of who is at fault for an accident. Here are some important things to know in order to take advantage of your PIP policy.
#1 – PIP pays for medical expenses for the insured driver.
Typical insurance policies cover the expenses of the non-at-fault driver and do not cover the expenses of the at-fault driver. However, PIP insurance will cover the costs of the person purchasing the policy even if the purchaser is deemed to be at-fault for the accident. In Florida, drivers must purchase a minimum of $10,000 in PIP insurance.
#2 – Time limits apply.
Florida law stipulates that in order to take advantage of PIP, the injured patient must seek medical treatment within 14 days of the date of his or her accident. If no treatment is sought within the first two weeks after your accident, it is doubtful that your PIP insurer will provide coverage for your injuries. You must act quickly in order to take advantage of PIP.
#3 – There is a limit to coverage provided by PIP.
While PIP offers substantial aid to injured motorists, the amount of protection it provides is limited. PIP covers 80% of medical bills and 60% of lost wages up to $10,000. If a larger policy is purchased, more damages may be covered.
#4 – PIP limits personal injury suits.
At-fault drivers cannot be sued for personal injuries to the non-at-fault driver if the cost of those injuries is covered under PIP. The exception to this is if the injuries are considered permanent. For example, significant and permanent loss of an important bodily function, significant or permanent scarring, and death are all reasons for a non-at-fault driver (or his or her family) to sue for personal injuries.
#5 – PIP encourages disputes to be settled out of court.
Because PIP policies remove the problem of fault when it comes to determining how insurance companies will pay for damages, it’s easy to settle disputes out of court.