What kind of insurance do I need? How much personal injury protection (PIP) insurance should I have? These are the questions that most drivers ask themselves before purchasing or updating their insurance policy. The truth is there is not a single, all-inclusive answer to this question, but what our car accident lawyers can say is that drivers carrying insurance policies that simply meet the state minimum usually find out that they are underinsured if they are involved in a major car accident. This is especially true for the amount of personal injury protection (PIP) insurance the average driver carries, because many people simply don’t understand how PIP insurance works and more importantly, how quickly it can be depleted following an accident.
How does PIP Insurance Work in Florida?
As you may know, you are required to carry at least $10,000 worth of PIP insurance in Florida. PIP insurance is sometimes referred to as no-fault insurance, because it covers your medical expenses after being involved in a car accident regardless of whether you caused the accident or not. Florida’s PIP statute, F.S.§627.736, states that each PIP insurance policy must include a provision of at least $5,000 in death benefits for individuals killed due to bodily injury, sickness, or disease arising out of the ownership, maintenance, or use of a motor vehicle.
What does PIP Insurance Cover in Florida?
Generally, PIP covers two broad areas, medical care and lost wages. Most medical care is covered under PIP at a rate of 80%, which means that, in many cases, you will be responsible for 20% of any medical bills you incur. Moreover, you will normally have to pay a deductible, which is typically $500 or $1,000 with most insurance carriers, but the deductible will vary based on the provisions of your insurance policy. Deductibles are paid not to the insurance company, but rather to medical providers.
Meaning, if you have a $10,000 PIP policy with a $1,000 deductible, you will be responsible for the first $1,000 worth of medical bills following an accident, and your insurance carrier will begin paying PIP benefits after the first $1,000 worth of medical bills are incurred. Moreover, although most medical bills, such as hospital bills, bills for visits with your doctor, and chiropractic bills, are covered under PIP, there are certain exceptions. For example, massage therapy is not currently covered under the PIP statute, but there has been past litigation challenging the constitutionality of the massage therapy exclusion within Florida’s PIP statute.
Lost Wages
PIP benefits can also be used to compensate you for lost wages during your recovery period. Lost wages are reimbursed at a rate of 60%, but many accident victims elect not to use their PIP benefits for lost wages in order to cover as many medical expenses as possible with their PIP insurance. However, your PIP utilization strategy should be discussed with you car accident attorney, so you can make the best legal decision based on the facts of your claim.
Can I Use my Health Insurance After my PIP Insurance is Depleted?
Many health insurance carriers will cover your medical expenses after all of your PIP benefits have been depleted, but this could vary on a policy-by-policy basis. Any medical bills paid by your health insurance will be treated just like any other medical bill, so if you are normally required to pay a deductible, you will be required to pay one for medical expenses covered by your health insurance carrier in connection with your accident. However, health insurance carriers can assert a lien on any awards or settlement funds you obtain from the at-fault driver or their insurance carrier for any accident-related medical bills your health insurance carrier paid for.
How Long do You Have to File a PIP Claim in Florida?
Pursuant to F.S.§627.736, you have 14 days after your accident occurred to seek medical care, or your insurance carrier could deny your PIP claim. Due to this, you should always get evaluated by a doctor after being involved in a car accident even if it is just to ensure that you haven’t sustained any serious injuries.
How Much PIP Insurance Should I Carry?
The appropriate amount of PIP insurance you should carry depends on a multitude of different factors such as how much your insurance premiums would be for a given amount of coverage, household income, and your driving history due to its effect on your insurance premiums. However, keep in mind, the average hospital stay in the United States in 2012 was over $18,000 according to data analyzed by the Department of Health and Human Services, so you want to keep the costs associated with health care in Florida at the forefront of you mind when you are choosing how much PIP insurance to carry.
Have You Been Involved in an Auto Accident?
Being involved in a car accident can be a life changing experience, and indeed, car accident victims face a host of different challenges such as mounting medical bills, missed time from work, and a painful recovery process. The car accident attorneys at Peck Law understand how difficult this period in your life can be, and our lawyers are dedicated to protecting your legal rights and seeking the compensation you deserve for your injuries. So, if you or a loved one have been injured in an auto accident, contact our office today to schedule a free consultation.
