Florida is one of twelve states that is considered to be a ‘no-fault’ state. As a result, drivers in Florida must carry a certain type of car insurance, called personal injury protection (PIP), to meet the legal insurance requirements.
Drivers in Florida and those in the process of moving to Florida should understand the basics of Florida PIP insurance. Drivers who do not meet Florida’s PIP requirements are subject to consequences, including fines, a suspended driver’s license and a suspended vehicle registration. Fortunately, Florida PIP insurance is easy to understand.
Florida PIP statute
The Florida PIP statute states that every driver in the state must carry PIP insurance. With PIP coverage, a driver’s insurance company will pay for their medical bills and lost wages after an accident, regardless of which driver caused the crash. The coverage also extends to members of the policyholder’s household and passengers in the car.
Every PIP policy in Florida has a limit of $10,000, which can go towards medical and disability benefits. However, the Florida PIP statute says that only 80% of medical expenses and 60% of lost wages will be covered. To use the coverage, policyholders must receive medically necessary treatment within 14 days of the accident. Qualifying expenses are surgeries, x-rays, rehab services, ambulance rides and prosthetic devices, among others.
Additionally, a PIP policy will pay up to $5,000 in death benefits if the policyholder dies in a covered car accident. Death benefits are used to pay for funeral expenses and other end-of-life costs.
How does PIP insurance in Florida work?
Ultimately, PIP insurance in Florida is used to reduce the number of lawsuits stemming from car accidents. In Florida, drivers or their loved ones are allowed to sue when severely injured in an accident, leading to disfigurement or death. Because the driver’s insurance company automatically pays for their medical bills and lost wages, there is rarely a need to sue the other driver for losses that are not covered.
Getting PIP insurance in Florida is very simple, as every insurance company in the state is legally required to sell it. However, every driver will pay a slightly different rate for their PIP insurance. Like all insurance policies, PIP insurance has an annual premium and a deductible. Before purchasing PIP insurance, it is a good idea to shop around to find a cheap car insurance provider.
How to file a PIP insurance claim in Florida
Drivers who get into an accident in Florida can file a PIP claim with their insurance provider. Unlike a standard insurance claim, though, there is a small window of time when drivers can file a PIP claim. The claim must be filed within two weeks of the accident; otherwise, the driver is not eligible for reimbursement.
When filing a PIP claim, policyholders should gather receipts and invoices for medical services received following the accident. If there is an official diagnosis, the policyholder should also include a copy of their medical records. Claims adjusters will review the receipts and records when reviewing the claim and use those costs to determine the policyholder’s payout.
One thing to keep in mind is that insurance companies in Florida have up to 60 days to investigate a PIP claim due to the high insurance fraud rate in Florida. After the claim is approved, the company has 30 days to pay the policyholder. As a result, filing a PIP claim in Florida can be a lengthy process for some drivers.
Frequently asked questions
What’s the best car insurance company?
There are dozens of great car insurance companies on the market. It is nearly impossible to say which one is the best. Based on our research, the best car insurance company overall is Amica. However, Geico might be a good option for drivers looking for the lowest rate, and Allstate might be right for drivers who want highly-rated customer service. It’s a good idea to shop around and compare rates and then speak with a licensed insurance agent before purchasing a policy.
How much does car insurance cost in Florida?
In Florida, the average full coverage car insurance policy costs $2,544, making Florida one of the most expensive states for car insurance. But remember that car insurance rates vary based on ZIP code, age, credit score and more.
Does PIP include coverage for vehicle damage?
No, PIP insurance only covers 80% of a driver’s medical bills and 60% of their lost wages after an accident. The only car insurance policy that pays for vehicle damages after an accident is collision insurance, which is optional coverage.