Under Florida’s system, each person who operates a vehicle in Florida for more than 90 days must have what is known as “personal injury protection” (PIP) insurance. PIP insurance covers the insured, the insured’s relatives residing in the same household, anyone driving or riding in the insured’s car, and anyone not in a motorized vehicle who is hurt as a result of the use of the insured’s car regardless of who is at fault in the accident. This is why Florida is known as a No-Fault state. Often we are asked “Why should my insurance coverage have to pay for my PIP coverage if I was not at fault in the accident.” A No-Fault state actually works to your benefit and is designed so that you do not have to wait for someone else’s insurance company to process your claims, when your own insurance company owes you a duty to promptly do so. It also prevents the situation of having to wait to try to get these expenses paid if there is a dispute as to who caused the accident.
The extent of PIP coverage is as follows: up to $10,000 per person for (1) medical expenses (paid at 80% of reasonable expenses); (2) lost income and earning capacity (paid at 60% of any loss of gross income and loss of earning capacity); and (3) funeral, burial, or cremation expenses (equal to the lesser of $5,000 or the remainder of unused personal injury protection benefits.
It is very important when filling out your application for insurance that you read it carefully. It typically asks for the names of all resident relatives over the age of 15. Make sure to disclose all such individuals or your insurance company may try to claim a material misrepresentation of your policy and attempt to deny coverage for PIP and other insurance coverage. Please contact us to discuss any questions you may have, and we will be happy to review your policy and advise you about your insurance coverage.
