In Florida, every driver is required to carry PIP coverage, personal injury protection, in an amount not less than $10,000. This coverage is strictly for the medical bills, lost wages, mileage and death benefits that are incurred by the insured person and the resident household family members. PIP covers you no matter who causes the accident which is why it is often called “no fault insurance.” Even if you are rear-ended by a drunk driver, your insurance must pay the first $10,000 of your medical bills.
There are many options available when purchasing PIP or no-fault insurance. Some policies carry a deductible. If the deductible is $1,000, the insured would pay the first $1,000 in medical bills and the insurance company would pick up the remaining $9,000. Some policies have no deductible. A straight PIP policy with $10,000 in coverage is required to provide coverage to have bills paid at 80%. All medical bills paid under PIP are reduced to an allowable amount of 200% of Medicare. PIP pays 80% of the allowed amount and the insured is responsible for 20% of the allowed amounts. Most insurance companies offer another line of coverage, medical payments coverage, that can be purchased to cover the insured’s 20% responsibility.
Bills paid under PIP are paid directly to the provider which is very similar to health insurance. In accident cases, you can still use your health insurance but only after PIP has exhausted. PIP is the primary insurance in an automobile accident. One crucial thing to know is that you can lose your ability to use your PIP insurance if you do not get to a doctor within 14 days of an accident. If you do not get to the doctor within 14 days, you could be limited to $2500 in coverage.
In addition to medical bills, PIP does provide a 60% loss wage benefit, mileage for medical treatment and a death benefit.
If you have questions on selecting PIP coverage or an analysis of your current coverage, contact Dena Foman or Bill Abel at 561-659-4020 to answer any questions you may have.