Florida PIP Insurance Requirements: What Is PIP Insurance?

There is no question that insurance can provide peace of mind and protection in a variety of loss-prevention situations. Few would argue that insurance is generally a good idea. There are situations, however, where insurance is actually required. In acquiring a mortgage, for example, a lender will require you to get homeowner’s insurance and perhaps life insurance to protect their interests. Recently, health insurance has been required. Most states also have some form of auto insurance or financial responsibility requirements in place. In ten states in particular, including Florida, there is a requirement for personal injury protection (PIP) coverage.

So what is PIP insurance? What does PIP insurance cover? How does PIP insurance work in Florida?

Have you wondered “Do I need PIP insurance in Florida?” Your questions are about to be answered.

What is PIP insurance?

PIP insurance is Personal Injury Insurance and it is required in “no fault” insurance states such as Florida. Every owner of a vehicle in the Sunshine State is individually responsible for their own injuries if they are involved in an automobile accident. This is the case whether they are at fault or not. For many people who move to Florida, this can be a bit confusing as many other states are not “no fault” insurance states. They are often surprised by the higher car insurance rates in the state.

What does PIP insurance cover?

PIP is designed to cover medical costs of injuries sustained in an auto accident regardless of who is at fault in the incident. In Florida, PIP will also cover loss of income due to injuries incurred along with funeral expenses.

PIP differs from Bodily Injury Liability in that PIP covers the driver’s injuries while Bodily Injury Liability covers others hurt in the accident that the driver is legally responsible for. Bodily Injury Liability also covers legal expenses while PIP does not.

How does PIP insurance work in Florida?

Florida has its own regulations when it comes to PIP. Drivers here can choose if they want coverage for just themselves or the members of their families. The regulations cover the specifics of the three areas of benefits.

• Medical Expenses. Based on the specific coverage and limits chosen, PIP will cover diagnostics, medical and surgical procedures, medications, hospital costs, and rehab services. In Florida, 80% of your medical costs are covered through PIP. If injuries sustained are not an emergency, you will be covered for only $2,500 worth of benefits.
• Lost Wages. If you are disabled as the result of auto injuries in Florida, PIP will pay you up to 60% of your lost wages with a $10,000 limit.
• Funeral Expenses. Family members of someone killed in an auto accident in Florida is eligible to receive $5,000 to cover funeral related costs.

Do I need PIP insurance?

If you own a motor vehicle in the State of Florida, you are required to have PIP coverage. You can choose PIP coverage based on your specific needs, however. If you have superior health insurance that will cover the cost of medical expenses in an auto accident injuries, for example, you may decide to choose state minimum PIP.

Personal Injury Protection is a result of Florida being a no-fault state when it comes to auto accidents. It is designed to cover the cost of medical injuries no matter who is at fault. If you own a car in Florida, you are mandated to have PIP. Like having a valid drivers license and updated registration, having valid insurance with PIP is a requirement in the Sunshine State.