Florida is a no-fault state and requires all drivers to have PIP, or personal injury protection. Between the PIP requirement and Florida's no-fault status, confusion about how it all works often occurs. Here is a look at what PIP insurance is, how it works, and why you should consider adding more coverage.
What Your PIP Insurance Covers
Florida requires all drivers to have at least $10,000 in PIP coverage. If an accident happens, and you or the other driver suffers an injury, the PIP coverage will kick in no matter who holds the fault. Your PIP coverage can help with:
- Medical costs
- Hospital expenses
- Ambulatory services
- Lost wages
- Death benefits
With each of the things PIP covers, you'll find several caveats. For example, PIP will only cover 80 percent of your medical costs. If your provider determines you didn't have a medical emergency, PIP will only cover up to $2,500.
The recovery of lost wages also comes with stipulations. You can only claim 60 percent of your lost wages up to a limit of $10,000. In addition, PIP does not allow you to recover anything for pain and suffering.
What Your PIP Insurance Doesn't Cover
PIP can help, but it doesn't cover everything. True, PIP is mandatory, but having only PIP insurance with nothing else can leave you paying out-of-pocket for expensive care. If your medical costs go beyond the PIP limit you have to pay for them yourself.
At that point, you can press a lawsuit against a negligent driver in a traditional personal injury case. You must prove your lost wages or medical costs are beyond your PIP coverage's limits.
In such cases, you'll need costs to outstrip the $10,000 by enough that it's feasible to pursue further damages. You can only sue for amounts beyond the initial $10,000. You can also sue for pain and suffering. While you're doing that, your bills can continue to pile up.
You can also sue the other motorist if you suffer a permanent injury due to the accident. Note you must file a PIP claim within 14 days to receive your benefits.
What Your PIP Insurance Can Benefit From
Because of some of the limitations of PIP, it's worth considering additional insurance options. You can still add liability coverage to your policy. Most states use bodily injury liability as a means to cover damages of an injured party.
If you're at fault for an accident, and the other person's medical bills go beyond their PIP coverage, your liability coverage can save you from a lawsuit.
Medical payments coverage, or MedPay, can help cover some of your medical expenses if you suffer an injury from an accident. Medical payments coverage options can:
- Help cover some of the costs PIP doesn't
- Help to pay down your deductible
- Help fill in gaps for your health insurance
Your own health insurance can also help if you're injured in an auto accident. Not all health insurance plans cover injuries from car accidents. You should look into your own plan to see what your insurer covers and what it doesn't.
These options can help you get the care you need sooner rather than later. The additional coverage can help you take care of many of your bills without the fear of them lingering or going into collection.
Your PIP coverage can do a lot for you, but it depends on how you package it. You need to evaluate your risks to choose insurance options that work for you beyond the state minimum requirements. At Advanced-Insurance.net, we can help you choose the right amount of coverage for your specific needs. Contact us today to discuss your options.