What Is PIP Insurance?

Whether you are a native Floridian or have moved to the Sunshine State from somewhere else, Florida auto insurance laws can be confusing. Without the right information, you can be left wondering how to pay for your injuries using personal injury protection (PIP) coverage.

What is PIP insurance? To answer that question, our Florida car accident lawyers at Chubb Law present this guide to the Florida auto insurance process.  

Florida’s Auto Insurance Laws Differ From Most Other States

In 1971, Florida passed its no-fault approach to auto accident claims. The goal was to minimize the number of insurance claims and lawsuits resulting from car crashes and allow motorists to receive payment faster without proving fault. The personal injury protection insurance model also restricts your ability to sue someone else for hurting you in a car accident, except under certain circumstances. 

The Florida Department of Highway Safety and Motor Vehicles (FLHSMV) also mandates that all drivers carry property damage liability (PDL) insurance. This policy pays for damage you cause to another person’s vehicle or other property in a crash. You have to purchase both PIP and PDL through an insurance company licensed in Florida to sell policies. An alternative is to qualify for an FLHSMV self-insurance certificate.

For both PDL and PIP insurance in Florida, you must carry a minimum of $10,000 of coverage. You may choose to purchase higher amounts, since healthcare costs have increased dramatically in recent years. In fact, the National Highway Transportation Safety Administration (NHTSA) reports that medical expenses for a car accident can range from $2,210 to $363,229, depending on the severity of your injuries. 

What Is PIP Coverage and How Does PIP Insurance Work?

Your PIP policy in Florida pays up to 80% of your medical costs deemed necessary and reasonable, up to $10,000 (or your policy limit if you bought a higher amount) for a covered injury.  It will also pay for up to 60% of your lost income while you recover, and a $5,000 death benefit to your survivors if you die from the crash. 

Here’s how the PIP insurance process works:

• You document your injuries after a collision through medical records, photos, and other evidence.
• You file a claim with your PIP insurance company without having to show who’s to blame (that’s what makes it “no-fault”).
• You receive payment for 80% of your approved medical bills.
• You pay your medical providers and focus on getting better.

While this seems fairly simple, it’s not always that way. For example, you have to seek medical care within 14 days after your crash, or your PIP insurance provider could deny your claim. That’s why many people turn to a car accident attorney for assistance. At Chubb Law, we always recommend that you go to the hospital after a car accident right away. 

Why Florida Relies on PIP and a No-Fault System

As we mentioned, the main goal of no-fault insurance is to reduce the number of lawsuits bogging down the Florida court system. Part of the drive toward this model is Florida’s status as having one of the highest numbers of uninsured drivers in the country. According to the Insurance Information Institute (III), as many as 20.6% of motorists were operating their vehicles without coverage in 2023. 

Another factor supporting the no-fault model is that Florida ranks among the most expensive states for auto insurance. A recent report from MarketWatch shows that Florida drivers pay an average of $3,229 per year for full-coverage insurance. The no-fault system shifts costs onto consumers rather than overloading the courts or leaving injured drivers to rely on social services after a devastating crash. 

You Can Sue Another Driver in Some Circumstances

While PIP is vital for getting payment for your medical costs faster, it also limits lawsuits against another driver unless certain injury thresholds are met. Specifically, you may pursue a claim against the at-fault driver as outlined in Florida Statutes Section 627.737.

This statute limits your ability to recover non-economic damages (like pain and suffering) unless you can prove you sustained  a significant and permanent loss of an important bodily function, permanent injury within a reasonable degree of medical probability, significant and permanent scarring or disfigurement, or death. When injuries meet this threshold, Florida law allows you to pursue non-economic damages against the at-fault party.

What Does PIP Cover?

Florida PIP insurance pays for medical bills resulting from your car accident injury, which may include any of the following:

• Emergency transport
• Surgery
• X-rays or other scans
• Medications
• Therapy and rehabilitation
• Hospital stays, including ICU and ER treatment

However, PIP does not pay for non-economic losses, such as your pain and suffering. Your emotional distress, diminished quality of life, and depression after an accident can be significant, but PIP excludes coverage for them. In addition, you must demonstrate that your expenses are reasonable and medically necessary, which can be up to interpretation by the insurance company. 

What’s Good and Bad About PIP Insurance

Here are some pros to having PIP car insurance in Florida:

• You don’t have to prove who’s at fault to submit your claim and get paid.
• You can provide bills showing your associated expenses and get paid more quickly than by filing a lawsuit.
• PIP covers your children in your car or on a school bus, so they don’t need their own policies. 
• If another person riding in your vehicle has their own PIP policy, they can use theirs instead of relying on yours.
• You can use PIP when you are a passenger in someone else’s car.
• You can use PIP if you’re hurt while riding a bike or as a pedestrian, if a motor vehicle is the cause.
• PIP coverage can coordinate with your personal health insurance to cover more of your costs if your PIP policy limit isn’t enough. 

Some cons to using PIP auto insurance include:

• PIP only pays 80% of your medical costs and 60% of your lost income.
• If you only have the minimum coverage of $10,000, you have to file a personal injury lawsuit to recover the rest.
• You still have to pay a deductible for PIP insurance that could be as high as $1,000. 
• Your policy provider has up to 60 days to investigate your claim to rule out the possibility of fraud for PIP insurance meaning you could face a delay getting compensation.

A non-resident visitor with a vehicle that’s been in the state for over 90 days could face penalties if they don’t buy PIP insurance. Their license could be suspended in both Florida and their home state.

Trust Chubb Law for Your Florida Auto Accident Case

Getting into a car accident is rarely easy or simple to handle, even if PIP is designed to make it less troublesome. Think of PIP as a first step for fixing the problem of a minor crash, allowing you to move on with your life after a fender-bender. When you have more serious injuries, it’s time to speak with a car accident lawyer serving Lake Mary, FL, and Seminole County. 

At Chubb Law, we can assist you with your insurance claims after a car accident, as well as manage more aggressive legal options such as a personal injury lawsuit to recover full compensation. When you trust us with your claim, we will make every effort to handle it as quickly and successfully as possible. Contact us to arrange a free consultation and learn what we can do for you.