What is PIP Insurance and How Does It Affect an Accident Claim?

Personal Injury Protection (PIP) insurance is a no-fault car insurance policy required by the state of Florida. It provides drivers with guaranteed benefits after an accident – regardless of fault – for medical bills and lost wages. PIP was created as a way to streamline accident injury claims, especially for smaller claims. Despite having automatic benefits, PIP does not necessarily cover long-term injuries, nor does the payout amount offer auto accident victims the compensation they may need to cover future losses.

PIP in Florida

Under Florida law, every owner must have $10,000 worth of PIP insurance. This insurance is through the vehicle owner’s own auto insurance policy. Regardless of who is at fault, PIP benefits are paid. Accident victims will have 80% of their medical bills covered and 60% of their lost wages up to the maximum payout of $10,000. The remaining expenses and losses are paid out of pocket by the victim.PIP covers any type of accident or injury involving a vehicle. Most drivers only carry the minimum required PIP insurance, but there are still many who are underinsured despite the PIP requirement.The PIP insurance carrier can delay payments for up to 90 days if they suspect the claim to be fraudulent or feel further investigation is needed. However, the carrier typically has 30 days after a claim submission to pay for any medical bills within the $10,000 limit. The carrier can, however, request that the policyholder take an examination under oath (EUO) regarding their accident before they receive PIP benefits. If the policyholder does not comply, the insurer has the right to deny the claim.

How PIP Affects a Personal Injury Lawsuit

PIP does not cover medical costs unless the car accident victim seeks medical treatment within 14 days of the incident. If the medical condition is not considered an “emergency,” then PIP pays out a minimum amount (usually around $2,500) of the maximum benefit. Under Florida law, an “emergency medical condition” is defined as any injury that requires immediate medical attention. After an accident, it is imperative that victims retain proof of any out-of-pocket expenses so that they may be reimbursed by their PIP policy.

The Reality of PIP

Any serious auto accident will have losses, and the $10,000 threshold is often not enough to cover those losses. An accident attorney can help victims recover additional compensation for items that include:

  • Lost wages
  • Medical bills for initial and continuing treatment
  • Loss of earning potential
  • Mental anguish
  • Pain and suffering

Contact an Auto Accident Attorney at Vasilaros Wagner Today

If you have been involved in an accident, you should file your claim with your insurance company to receive PIP benefits. However, you have the right to have an attorney assist you with filing your PIP and personal injury claim. Contact the Daytona Beach Lawyers at Vasilaros Wagner today for a free consultation by calling (386) 777-7777 or by completing an online contact form.

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