Florida is deemed as a "No Fault" State. PIP laws attempt to remove certain claims from the Tort liability system and substitute a system of benefits payable by one's own insurer. In most instances, the primary reason is to contain the rising costs of auto insurance.
The law states:
1. One who owns a motor vehicle is expected to fund PIP for oneself and all residing family members, providing the family members are not themselves the owner of a motor vehicle (rather than looking to others who may have caused injury). In other words, no matter who is at fault, PIP is payable by the insured.
2. Those who do not own motor vehicles or belong to a family which owns a motor vehicle are entitled to the PIP benefits of the owner of the motor vehicle they were occupying or by which they were struck
Example 1: You are driving your car and are struck by another car. The other driver admits liability. Whose insurance company pays for your medical expenses?
Under PIP laws, your insurance company pays your medical expenses up to the determined limit, not the at fault driver. You can sue the driver , through his insurance for damages, based upon the medical reports produced during your treatment. This has nothing to do with your PIP benefits and your medical treatment is not deducted from the Bodily Injury limits of the at fault person that you are claiming from.
Example 2: A passenger is in a car driven by a friend. The car is hit in the rear by another driver. The passenger is injured and needs treatment. The passenger owns his own car. Whose insurance pays for the treatment?
The passengers insurance pays for medical treatment under the PIP laws,not the at fault driver. If the passenger did not own a car but lived in a house where a relative owned a car, then the owner of that vehicle would fund the medical treatment through that PIP, again not the at fault driver. Only if the passenger did not own a car and did not live in a house where a vehicle was owned by a relative, would the at fault drivers PIP fund medical treatment.
Remember, this has nothing to do with a suit for damages against the at fault driver. That is a separate issue generally dealt with by an attorney. Without the medical treatment funded by PIP, an attorney would have no case with which to go to the at fault parties insurer.
Also remember, as a victim, even though your own insurance covers medical payments under PIP,your renewal premium will not be increased because of this.
The payments are as follows:
Medical Payments - 80% of medical expenses are covered
Work Loss Benefits - 60% of lost income or earnings capacity
Household services performed by others - 100% of cost, eg housecleaning, yard work.
The required limit for PIP benefits is up to $10,000 per person per accident and is subject to a deductible you have already chosen. With effect from January 1 2013, new laws have been put in place that affect your benefits. These laws are complicated and favor the insurance compnies as opposed to you, the insured. We will be happy to explain the new rules to you to ensure you receive your maximum benefits. What is important is that you seek medical treatment within 14 days of your accident. If you do not, then you will not be eligible for any of the PIP benefits for which you paid a premium.
This may all seem confusing, but with us,you have an advantage.
WE TAKE CARE OF EVERYTHING FOR YOU.
Our primary concern is your health, but we can help in other ways. We can talk with your insurance company to make sure that you are covered for the injuries you have sustained. To help us with this, we have in our office a licensed, independent insurance agent. He will help to coordinate between our Doctors, your insurer and you and make sure that you receive all the benefits due under your policy.
We also have excellent relationships with local attorneys and will gladly recommend one to you,if you wish.
Again, as every accident is different, we can advise you of the best course of action