Dropping Pip Auto Insurance In Florida

Florida is one of the few US states that requires its drivers to have personal injury protection (PIP) insurance, also known as no-fault insurance. This means that in the event of a car accident, drivers can turn to their own auto insurance policy to claim compensation for their injuries, regardless of who is at fault. While it is possible to get rid of PIP auto insurance in Florida, it is not currently possible to do so. In 2021, the Florida Senate introduced a bill (SB 54) that would have eliminated the mandatory PIP requirement, but it was vetoed by Governor Ron DeSantis. More recently, in March 2023, a new bill (SB 586) was introduced in the Florida Senate that proposes to remove the no-fault system from Florida's required auto insurance coverage. However, as of July 2024, no changes have been made to the law, and Florida drivers are still required to have PIP insurance.

Florida's no-fault laws

Florida is a no-fault automobile insurance state. This means that all drivers are required by law to carry personal injury protection (PIP) insurance and other coverages. This ensures that certain costs incurred as a result of an accident are covered, no matter who is at fault.

The no-fault system has been defined as follows: "regardless of who is at fault for the accident, a driver can turn to their own car insurance for compensation for their injuries." This means that drivers involved in an accident won't need to exchange insurance information or worry about filing claims through each other's policies. However, this also places additional costs on every driver, regardless of who caused the accident.

The benefits of Florida's PIP law include:

• 80% of medical bills covered
• Up to $2,500 for non-emergency treatment
• Up to $10,000 for treatment of an emergency medical condition
• 60% of lost wages covered, subject to a $10,000 limit
• $5,000 in death benefits

There has been a push to eliminate the no-fault system for auto insurance in Florida, with the Florida Senate introducing SB 54 in 2021, which would eliminate the mandatory PIP requirement for auto insurance. In its place, the new PIP reform law would require vehicle owners to carry a minimum of $25,000 in bodily injury coverage and a minimum of $50,000 for two or more people in any one accident. However, Governor Ron DeSantis vetoed the bill, alleging that it may drive insurance costs up for Florida residents and result in a higher number of uninsured drivers on the road.

PIP insurance costs

In Florida, drivers are required to have Personal Injury Protection (PIP) insurance, also known as no-fault insurance. This type of insurance covers medical expenses and lost wages resulting from a car accident, regardless of who is at fault. The current minimum requirement in Florida is $10,000 per person in PIP coverage, which will cover 80% of medical costs and 60% of lost wages, up to the $10,000 limit. PIP insurance in Florida also includes up to $5,000 in death benefits.

The cost of PIP insurance in Florida is relatively affordable, adding about $300 to the annual cost of a car insurance policy. The exact cost will depend on factors such as the coverage level, age, type of vehicle, insurance company, and location. For example, a 30-year-old male driver with a good driving record and a 2016 Honda Civic can expect to pay around $300 per year for PIP insurance.

To get a cheaper PIP insurance quote, drivers can opt for a higher deductible, up to $1,000. Excluding work income from PIP coverage can also lower the cost. However, it is important to remember that PIP will only cover 80% of medical costs, so drivers will still be responsible for the remaining 20%. Therefore, it is crucial to ensure that you can cover the deductible and the remaining medical costs in the event of an accident.

While PIP insurance is mandatory in Florida, there have been recent attempts to eliminate the "no-fault" system and replace it with new requirements. In 2023, a new bill (SB 586) was introduced in the Florida Senate, proposing to remove the "no-fault" system and requiring drivers to show proof of mandatory bodily injury coverage. If passed, this bill will take effect in July 2024.

PIP and health insurance

Personal Injury Protection (PIP) is a type of "no-fault insurance" that covers medical bills and related costs resulting from a vehicle accident, regardless of who is at fault. PIP is mandatory in Florida and some other states, and optional in others. It covers the policyholder and their passengers, even if they don't have health insurance. PIP covers 80% of medical bills, up to $10,000, and lost wages up to $10,000, as well as other costs.

Health insurance, on the other hand, typically covers medical expenses after a deductible is paid. It may not cover non-medical expenses such as lost wages, domestic services, rehab, and physical therapy. PIP is designed to cover these additional costs, as well as medical expenses.

In some cases, it may be possible to designate your health insurance as the primary source of coverage in the event of a vehicle accident, with PIP providing secondary coverage. This can yield premium savings, but it's important to ensure that your health insurance will indeed cover injuries from vehicle accidents.

While PIP and health insurance have some similarities, they serve different purposes and offer different levels of coverage. PIP is specifically designed to cover costs associated with vehicle accidents, while health insurance typically covers a broader range of medical expenses. As such, it may be beneficial to have both types of coverage, especially if you live in a state where PIP is optional.

In Florida, the no-fault system has been under scrutiny, with attempts being made to eliminate it in favour of increased liability coverage. However, as of March 2023, the no-fault system remains in place, and drivers are still required to carry a minimum of $10,000 in PIP coverage.

PIP coverage limits

Florida is one of the 12–16 states that require Personal Injury Protection (PIP) coverage. In Florida, the minimum PIP coverage is $10,000. This means that if you are injured in an accident and your medical treatment costs $15,000, your PIP will cover $10,000 of that amount. If you have a plan with more coverage, your insurance will pay for expenses up to that limit.

Florida's PIP coverage pays for 80% of medical bills and 60% of lost income, with a limit of $10,000 on lost income. It also covers up to $2,500 for non-emergency treatment and up to $10,000 for the treatment of an emergency medical condition. PIP also covers $5,000 in death benefits, including funeral and burial expenses.

In Florida, you can choose whether you want your PIP to cover just yourself or other residents of your household. You can also opt for a higher deductible, up to $1,000, to get a cheaper car insurance quote.

While PIP covers a range of expenses, it does not cover acupuncture or damage to your property.

Filing a PIP claim

Florida drivers are required to have Personal Injury Protection (PIP) insurance, also known as no-fault car insurance. This unique type of insurance will pay for damages to a claimant based on their own policy, even if they are found liable for their own car accident. PIP covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, regardless of who caused the crash. It also covers a percentage of lost wages and death benefits.

If you've been in an accident, you will need to file a PIP claim within 14 days, and you must seek medical attention within this time frame to be eligible for reimbursement. You will need to gather your medical bills and proof of lost wages, as well as fill out paperwork and provide additional information as requested by your insurance company.

• Seek Medical Attention: Within 14 days of the accident, get medical attention for any injuries. This is crucial for your health and for ensuring your PIP claim is eligible for reimbursement.
• Notify Your Insurance Company: Contact your insurance company as soon as possible to inform them of the accident and your intention to file a PIP claim. They will guide you through their specific claims process and provide you with the necessary forms and requirements.
• Gather Documentation: Collect all relevant documentation, including medical bills, proof of lost wages, police reports, and any other records related to the accident. This documentation will support your PIP claim.
• Complete and Submit Forms: Your insurance company will likely require you to fill out specific claim forms. Carefully fill out these forms and provide any additional information or documentation they request. Be as detailed and accurate as possible when describing the accident and your injuries.
• Follow Up: After submitting your PIP claim, stay in communication with your insurance company. They may have additional questions or requests for information. Keep a log of all your medical expenses and any other costs related to the accident, as you may need to provide updates or additional documentation.
• Seek Legal Assistance if Needed: If your case is complex or if your insurance company is not cooperating, consider consulting a personal injury lawyer. They can help ensure your rights are protected and guide you through the claims process.

Remember, it is essential to act promptly when filing a PIP claim in Florida. The 14-day rule is a critical deadline for seeking medical attention and initiating your claim. By following the above steps and staying organized, you can effectively navigate the PIP claims process and receive the benefits you are entitled to.

Frequently asked questions