Tuesday, November 8, 2016
Information about PIP Insurance
PIP is a mandatory part of insurance coverage in Florida.1 PIP stands for personal injury protection and all Florida drivers and vehicle owners are required to have $10,000 of PIP coverage. The PIP benefits are paid by your own insurance company regardless of who is at fault in the accident. In this way, Florida is viewed as a “no-fault” state.
Florida legislators made PIP coverage mandatory to help cut down the time it takes to recover for medical expenses and lost wages. In addition, it helps to ensure that the injured driver can seek treatment without having to worry about payment and whether the at-fault driver was insured.
Fault vs. No Fault Accidents
In a typical car accident, there is a driver who caused the accident and a driver who was hit and injured by the other driver. The driver who was hit would file a lawsuit against the other driver or file a claim with the driver who caused the accident’s insurance company to receive payment for outstanding medical bills, lost wages, and pain and suffering damages. In this, a typical at-fault scenario, the insurance company of the driver that caused the accident accepts liability and pays for the damage done. Florida still follows this method, but the introduction of PIP adds a no-fault element to the above scenario.
In Florida, assuming both drivers have proper insurance coverage, the fault of the parties does not matter to obtain PIP coverage. This means that if you are in an accident caused by someone else, you do not have to file a lawsuit or deal with the other person’s insurance to get payment for the damage done. Instead, you would contact your own insurance company to get coverage for your bills and lost wages. This greatly expedites the process of getting reimbursed and allows injured people to get the treatment they need without having to figure out how to pay for it. Instead, their insurance company pays for their expenses and then goes about getting the other driver’s insurance to pay them back for it, so your insurance rates are not affected.
In addition, PIP coverage allows the driver who caused the accident to recover for their own injuries. In a typical at-fault scenario, the driver who caused the accident would not get any benefits from their auto insurance.
Limits of PIP Coverage
In Florida, every auto policy contains $10,000 of PIP coverage. PIP insurance does not pay for 100% of your medical bills and lost wages, however. Instead, it covers 80% of your medical expenses and 60% of your lost wages, up to the $10,000 threshold. Because of this, even if your damages are relatively minor, you will still have to deal with the other party’s insurance company or file a lawsuit to get your full compensation from the at-fault driver’s insurance.
In addition, the fact that PIP coverage is set at $10,000 in Florida means that those drivers who are more seriously injured will have to seek full reimbursement through other means than their own insurance company. The PIP coverage certainly will help offset some of the outstanding expenses, but usually a lawsuit is necessary to ensure that you are compensated fully for your outstanding medical expenses, lost wages, and pain and suffering. Because of the complexities involved with dealing with your PIP coverage and recovering the amounts not covered by PIP, you should make sure to contact an experienced Florida auto accident personal injury attorney to make sure that you are fully compensated for your injuries.
Contact a Clearwater PIP Accident Attorney Today for a Free Consultation!
If you or a loved one has been involved in an accident, contact a Clearwater, Florida PIP lawyer right away. Florida law allows victims to recover compensation for injuries and other losses that they may experience as a result of a collision. You always want to have an attorney on your side who has a thorough understanding of Florida insurance and personal laws and, at Dolman Law Group, we have the experience needed to successfully handle your case. To schedule a free consultation with one of our lawyers, call our office today at 727-451-6900 or send us an email through our online contact form.