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Understanding Florida’s Pip Insurance and How It Works

PIP stands for Personal Injury Protection and is a requirement for all drivers in “No-Fault” insurance states, including Florida. It is paid by your insurance company and covers injuries you sustain in a car accident regardless of who caused it. It also provides coverage for any accidents or injuries involving a vehicle, even if you’re a cyclist or a pedestrian. The purpose of PIP insurance is to provide you with immediate access to medical services in case you’re injured.

The minimum limit for PIP insurance is $10,000 and it is meant to cover medical bills for you and your passengers (such as diagnostics, surgery, dental, ambulance fees, medication, rehabilitation). It can also be used to recover any lost wages and rehabilitation or replacement services incurred as a result of a car accident, along with a death benefit of up to $5,000. PIP insurance covers your medical bills (up to 80%) and your earning capacity or lost income as a result of the accident (up to 60%), as well as costs for services like housekeeping, childcare or any other tasks you’re unable to complete yourself due to the injuries sustained in the accident. In case the policyholder dies, PIP covers their funeral and burial costs.

The most important thing you need to do after an accident is to seek medical treatment within 14 days of the collision. Medical care must be provided by a certified doctor, emergency medical service provider (an ambulance, for example), a hospital or a facility owned by a hospital (such as an ER). The health professional will determine whether you have suffered what’s known as an “emergency medical condition” (EMC). An EMC is a condition that requires immediate medical treatment. If you’re diagnosed with an emergency medical condition by a doctor, you’re allowed the insured coverage for the full $10,000.00 PIP benefit. Otherwise, your PIP benefits are limited to $2,500.

Here are the facts:

It’s important to note that half of Florida drivers today only have the minimum required insurance. Many have inadequate insurance and some are even driving illegally without any insurance at all. The minimum $10,000 PIP coverage can often be inadequate to cover medical costs that result from a vehicle accident, but you have the option of purchasing a policy with a higher premium. Finally, if another person that is not a member of your family operates your car on a regular basis, you can add that person as an additional insured to get the same PIP benefits as if they were a family member.

  • Personal Injury Protection is obligatory in the state of Florida since it’s one of the “No-Fault” insurance states
  • If you are in an accident, PIP benefits are paid by your insurance provider
  • PIP insurance covers 80% of your medical bills and 60% of your lost wages up to $10,000
  • The rest of your expenses are recovered from whoever caused the accident
  • PIP covers all accidents and injuries that involve a vehicle, even if you’re injured as a pedestrian or a cyclist

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