Personal Injury Protection
This is commonly referred to as “PIP”. This is a form of insurance which is mandatory in many states; however, not all states require this type of coverage. PIP guarantees that the person that purchases this type of coverage that a certain amount of their medical bills will be paid regardless of whether they are at fault for the accident or not. This type of coverage (PIP) can also apply to other persons in your vehicle and resident/relatives. For example: if your brother is in a car crash and lives with you, even if he/she does not have PIP coverage, he may be covered under your PIP policy.
Under most circumstances, PIP pays 80% of your medical bills up to the policy limit. Normally in states such as Florida, the limit is $10,000. However, recently Florida law has changed and there are a number of exceptions, loopholes and ways for insurance companies to not pay the full $10,000 in PIP benefits. This was done after the insurance companies promised to lower rates if these changes passed but they did not lower the rates for PIP. Please see additional blogs regarding Florida’s new PIP law to determine if you qualify for the full PIP coverage or only the lower amount.
Additionally with PIP coverage, you would be responsible for any deductible maintained on your policy (in some cases the PIP deductible is $1,000.00), as well as the 20% that PIP does not cover. Your PIP coverage would then pay your medical bills at 80% up to the policy limit. Providers that accept PIP as a method of payment and most general practitioners that do not accept PIP, will generally wait until the conclusion of the case to be paid any deductible that may have been applied to their bill and/or the 20% unpaid by your PIP coverage.
Definitions are specific as to Florida Law. Other state statutes may define them differently and different insurance policies may have different definitions.