ABC's of Personal Injury Protection (PIP) in Florida
A common topic that we are asked to explain to clients in our Florida law office is the Florida Law on PIP. There are several misconceptions out there on what PIP covers. This blog post will go over the ABC's of Florida Personal Injury Protection Insurance.
PIP is a guaranteed health insurance policy for a person who is injured in an automobile accident. When a person is injured in an automobile accident if they do not have regular health insurance, but they have PIP insurance, they are guaranteed $10,000 of health insurance less what ever deductible they have chosen. In other words, the person injured is guaranteed $10,000 worth of health benefits. If they have a $1,000 deductible for example, the first $1,000 of medical bills is their responsibility.
PIP pays 80% of your reasonable and necessary medical bills. The PIP law just changed, so there are Medicare fee schedules that PIP pays 80% of those schedules. For example, if there is a charge for $100, Medicare's fee schedule would be $80. Eighty percent of the first bill would get applied to the deductible. When the deductible is met, PIP then pays 80% of those next bills, up to $10,000. One of the benefits of PIP is that it gives the injured person in an accident, $10,000 of insurance for their medical bills. It is also the law in Florida as the minimum requirement to operate a vehicle. In the State of Florida, you must have PIP and Property damage insurance.
Is it always the $10,000 limit?
Yes. I have seen on occasion, extended PIP, but those would be associated with out of state policies. I have not seen extended PIP on a Florida policy.
What is the deductible for PIP?
You can manipulate your deductible, meaning you have options too choose from, which includes: no deductible, $500 deductible or $1,000 deductible.