How Does Personal Injury Protection (PIP) Work in Florida?

What does Florida PIP insurance cover?

Florida PIP covers medical costs, lost wages and death benefits.

What sets Florida apart from other states is that only 80% of your medical costs will be covered by PIP. So if you have injuries that cost $10,000, PIP will only pay for $8,000 of that. And if your injury is not considered an emergency, you will only be entitled to $2,500 in benefits. A good health insurance policy might cover the rest of the costs, but you should make sure it will cover car accident injuries.

Medical costs

PIP will cover most medical costs, with a few exceptions, including acupuncture.

In other states, like New Jersey and Michigan, PIP will generally cover the injuries of anyone in your household. But in Florida, you can choose whether you want your PIP to cover just yourself or other residents in your household.

Florida PIP and economic benefits

If you're injured in an accident and become disabled, Florida PIP will pay for 60% of your lost wages, subject to a $10,000 limit. This will also cover the costs of paying someone else for services you can no longer handle on your own. That includes daily chores like laundry, cleaning the house and caring for pets.

Death benefits of Florida PIP

If the policyholder were killed, PIP would pay up to $5,000 for their funeral and burial expenses, in addition to the other benefits.

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How much does PIP cost in Florida?

In Florida, you'll only have one option of PIP, $10,000 in coverage. PIP adds about $300 to the cost of an annual car insurance policy in Florida.

To get a cheaper car insurance quote, you can opt for a higher deductible, of up to $1,000. You can also choose to exclude work income and whether you want your PIP to cover other residents of your household.

Opting out of work loss only knocks off a modest amount from your yearly rate. A higher deductible is often the best way to reduce your premium. Before you opt for the $1,000 deductible, however, remember you will still be responsible for the 20% of your medical bills your PIP won't cover. Be sure you would be able to pay for those charges as well as pay $1,000 out of pocket.

When and how to file a PIP claim in Florida

Florida has strict rules to follow when filing a claim for PIP. Most importantly, treatment for any injuries must happen within two weeks of the car accident to be eligible for PIP reimbursement. Your claim will not be accepted after two weeks. Due to a high incidence of insurance fraud in the state of Florida, your insurer has up to 60 days to investigate your claim for any falsehood. Still, it must pay for your damages within 30 days, even if there is suspicion.

If your case is not straightforward, or your insurance company is giving you issues, it may be a good idea to get a personal injury lawyer to ensure you get your payment. In the meantime, you should keep a log of all of your medical expenses after the accident.

For work loss benefits, your employer will need to fill out and submit a wage and salary verification form. The verification documents your wages in the 13 weeks prior to the accident. A lawyer might help ensure your employer fills out the verification in a timely manner. You may also be required to get a note from your physician detailing how you are disabled.

Florida PIP law still gives you a right to sue

No-fault states like Florida institute PIP laws to reduce the number of people suing each other over damages. Most no-fault states, including Florida, only allow drivers to sue when the injuries are considered severely disfiguring or permanent or result in death. Florida, however, also allows drivers to sue for medical costs over $10,000, even if the injury is not severe.

So if you are injured in an accident that results in $20,000 worth of hospital bills, you are allowed to sue the other driver for the remaining $10,000 not covered by your PIP. You may also sue them for any emotional pain and suffering you think the injuries have caused you.

Considering a hospital stay after an accident could cost up to $60,000, it's wise to have a good amount of bodily injury liability coverage on your policy. While bodily injury liability is not required in Florida, it could protect you from being sued directly for excessive medical costs if you cause a major car accident.

Medical payments coverage vs PIP in Florida

Medical Payments or MedPay is essentially the same type of insurance as PIP, except it only covers medical bills and not lost income or other costs. It may be worth having on your Florida car insurance policy because the limits are quite low. MedPay can add an extra $5,000 worth of coverage for around $100 per year.

Additionally, MedPay can help pay for the 20% of your costs that PIP won't cover if your health insurance won't cover it as well. MedPay can also help pay for the deductible on your PIP.

Methodology

To determine the average price of PIP coverage in Florida, we collected sample quotes for six different coverage levels: PIP policies with or without work loss coverage, with deductibles of $0, $500 and $1,000.

Our sample driver is a 30-year-old man who lives in Jacksonville, Florida, where prices are similar to the state average.