In terms of automobile liability insurance, Florida is a No-Fault insurance state - this means that every driver must carry a minimum of $10,000 in Personal Injury Protection (PIP) coverage. Yet, did you now that the Personal Injury Protection requirement minimum in the State of Florida in 1982 was also $10,000? If you’re stuck in the 80’s along with the State of Florida’s requirement for PIP coverage, then this article is for you!
What Is No-Fault Insurance?
Florida is one of ten (10) states that have personal Injury Protection (PIP) auto insurance. The goal is to provide injured drivers up to $10,000 in immediate medical coverage rather than having the wait and establish fault through the court system. With the purchase of Personal Injury Protection (PIP) comes the responsibility for your own injuries in an accident regardless of fault - thus the term “No-Fault”.
In a “No-Fault” state, either driver involved in an accident can use Personal Injury Protection coverage, regardless of who caused the injuries. When an accident occurs, you can turn to your own insurance company for support rather than filing claims with different entities. In contract, an “At-Fault” state requires you to choose between filing a claim with your own insurance company, the insurance company of the other driver, OR file a personal injury lawsuit in civil court.
What Does Personal Injury Protection (PIP) Cover?
IMPORTANT
Personal Injury Protection (PIP) benefits may be provided to you ONLY if you receive medical treatment for your injuries within two weeks (14 days) of the accident. Otherwise, you might be ineligible to receive benefits.
No-Fault Insurance Coverage
No-Fault insurance will pay the following benefits, after any applicable deductibles:
Medical: If your injury is an emergency, 80% of your medical bills, including out-of-pocket prescription costs, dental expenses, and rehabilitative services, are covered; if your injury is not considered an emergency, you will only be entitled to $2,500 worth of benefits
Disability: If you are injured in an accident and are disable, you are entitled to 60% of your lost wages, subject to a $10,000 limit
Death: If the accident results in the death of the policyholder, your insurance would cover the expenses for your funeral and burial expenses in addition to the benefits listed above; your next of kin is entitled to $5,000 worth of death benefits for those associated costs
What Other Florida Insurance Coverage Is There?
Property Damage Liability (PD) Coverage
Florida law requires a minimum of $10,000 of this type of coverage.
Property Damage Liability Coverage pays for damage to, or destruction of, tangible property of another, including loss of use, for which you are determined to be legally liable. If you are sued, the insurer will provide legal representation until the insurer has paid the policy coverage limit.
Bodily Injury Liability (BI) Coverage
Bodily Injury Liability Coverage pays for the death or serious and permanent injury to others when you are legally liable for those damages. If you are sued, the insurer will provide legal representation until the insurer has paid the policy coverage limit.
Uninsured/Underinsured Motorist (UM) Coverage
Uninsured/Underinsured Motorist Coverage pays you for an accidental bodily injury, sickness, or disease, including death, when such and injury is the result of an automobile accident and the at-fault party does not have Bodily Injury (BI) Coverage, or has insufficient liability limits. Unlike Personal Injury Protection (PIP) benefits, Uninsured/Underinsured Motorist (UM) benefits are typically paid as a lump sum once the full extent of treatment has been determined, or rendered.
Medical Payments (Med Pay) Coverage
Medical Payments Coverage pays for your reasonable expenses for necessary medical and/or funeral services due to a bodily injury or death sustained in an automobile accident, regardless of fault.
Comprehensive or Other than Collision Coverage
Comprehensive or Other than Collision Coverage pays for damage to a vehicle from incidents other than a collision including: fire, theft, windstorm, vandalism, or flood. It also covers damages caused by falling objects or from hitting an animal.
Collision Coverage
Collision Coverage pays to repair your vehicle if it collides with another vehicle, flips over, or crashes into an object (except animals), regardless of fault. In the event that your vehicle is determined to be a total loss, the insurer will pay to replace it. The amount paid by the insurer is typically limited to the vehicle’s actual cash value (ACV), unless the specific value of the vehicle has bene previously agreed to by both you and the insurer.
Towing and Labor Coverage
Towing and Labor Coverage provides coverage for emergency road service (at the scene) and towing up to the limits shown on the policy.
Rental Reimbursement
Rental Reimbursement provides for replacement transportation up to a specified limit shown on the policy. It applies if your vehicle is inoperable, or unsafe to operate following a covered loss. Some insurance companies will pay the rental vehicle provider directly, however others require that their insured pay the rental cost out of pockets, and submit receipts for reimbursement.
Do You Have Enough Coverage?
No-Fault states like Florida institute Personal Injury Protection laws to reduce the number of people taking each other to court over damages. Most No-Fault states, including Florida, only allow drivers to sue when the injuries are considered severely disfiguring and/or permanent or have resulted in death. Florida, however, also allows drivers to sue even if the injury is not severe, so long as the medical costs exceed $10,000.
Although you are required to carry a minimum of $10,000 in Personal Injury Protection Coverage, we encourage you to purchase a policy with a higher amount. That’s because $10,000 could be just the tip of the iceberg for the costs associated with treatment if you’re in a serious crash.
So, if you are injured in an accident that results in $20,000 worth of hospital bills, you are allowed to sue the other driver for the remaining $10,000 not covered by your Personal Injury Protection. You may also sue them for any emotional pain and suffering you think the injuries have caused you.
Speaking of which, considering the average hospital stay after an accident is around $60,000, it is probably wise to have a good amount of Bodily Injury Liability Coverage on your policy (yes, your policy). While Florida does not make that coverage mandatory, if you are taken to court for excessive medical costs, the other driver can sue against your bodily injury insurance rather than you directly.
Florida’s No-Fault stance is in place to reduce lawsuits and provide protection for drivers, however it does not completely take away the right for personal injury litigation. At Wieland & DeLattre, P.A., we have over three decades of experience representing injured individuals and are dedicated exclusively to advocating for the rights of injury victims. This singular focus has allowed our attorneys to develop deeper insights into Florida’s injury laws and we will leverage this comprehensive knowledge to help you determine the right course of action for your case.
Glen D. Wieland
Glen Wieland graduated from Presbyterian College in 1979 and went on to obtain his law degree from Cumberland School of Law at Samford University. In 1982, he began his law career with the firm of Walker and Buckmaster, P.A., representing employers, insurance carriers and plaintiffs in both personal injury and workers’ compensation. In 1987, he joined Jim Kelaher and formed Kelaher & Wieland, P.A., representing only plaintiffs in both personal injury and workers’ compensation cases. He became board certified in workers’ compensation in 1990 and has remained board certified since that time. The firm is now know as Wieland & Delattre, P.A.
