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What Is PIP In Insurance: All You Need To Know

Every state has different laws surrounding personal injury. Getting into an accident without any fault may put you under stress. You may worry about medical expenses, lost wages, and other things.

Sometimes people also lack proper insurance coverage and realize it too late. This is why you may think about PIP in insurance (personal injury protection insurance).

If so, you don’t have to search any further. Let’s look at “how does PIP insurance work” and what it covers.

What Is Personal Injury Protection (PIP)?

A definition post explaining what is personal injury protecion

Personal injury protection insurance (PIP) is a cover that you can add to your overall insurance policy. Its main purpose is to cover your losses if you get into an accident.

The main feature of personal injury protection in Florida is that it is a no-fault insurance cover. This means that your insurance company will have to cover you regardless of who was at fault during the accident.

Typically, the choice to buy PIP insurance is up to you in some states. However, every insurance agency must offer this option to its customers by law.

When you reject this coverage policy, you must offer a signed written request to your insurance company. Otherwise, most companies put it automatically to policies and charge for it.

Insurance adjusters also add the policy automatically in states in which this protection is required by law such as Florida.

What Does PIP In Insurance Cover?

An infographic explaining what pip in insurance covers

PIP in insurance mainly covers the person whose name is on the policy. Family home residents related to you by blood, adoption, and marriage are also covered by PIP in insurance.

The policy will also cover your step or foster kids if they get into an accident. People who aren’t your family by blood, but were sitting in the car as passengers also receive coverage by PIP in insurance.

It will also cover the medical expenses of the pedestrians you hit with your car.

For all these people, the PIP in insurance will mainly cover the following types of expenses and losses:

1.   Lost Wages

Getting into a major accident can put you out of work due to disabilities. You may also have to take off from work after minor accidents that hospitalize you. This means you will lose your wages or be out of a job completely.

Whatever the case, if the injury was the direct cause behind lost wages, PIP in insurance will cover you. The main purpose of such protection is to help you focus on your recovery, instead of worrying about your family.

Remember this benefit is also applicable in some other cases. For example, you may wonder if the wages of self-employed people are covered by PIP in insurance.

The insurance will cover you in self-employment cases. It will also cover you if you have to hire additional workers to complete your work to avoid business losses.

That is why it is important to always add PIP to your insurance policy in Florida.

2.   Medical Expenses 

The top thing that people worry about after an accident is medical expenses. Some victims also avoid going to hospitals in minor accidents so that their bills don’t increase. However, not treating a minor injury promptly can lead to major problems later.

If you don’t seek immediate treatment and present with health issues later, you may also not be able to file a personal injury case against the at-fault party. That is because your negligence would be the cause behind the worsening.

The good news is that even without filing a case, your medical expenses can be covered by your insurance provider. This is only true if you have PIP in insurance.

This policy will cover every medical expense associated directly with the accident. The coverage will help you a lot if you face hospitalization for a long time.

PIP in insurance will also cover the medical bills of the passengers in your car regardless of whether they’re family. It may also cover your health insurance policy’s deductibles.

3.   Essential Services

Personal injury protection insurance covers more things than just direct financial loss. For instance, if the accident affects any essential service that you are performing, the insurance will cover it.

For example, you may have been the babysitter of your kid, while your spouse goes to work. The accident may incapacitate you and prevent you from caring for your child while recovering.

This means you may have to avail childcare services temporarily. As an essential service, the payment for this will come under personal injury protection insurance.

Another prime example of essential services covered by PIP in insurance is household cleaning. You may have to hire a cleaning lady from an agency to sparkle your house.

Of course, you may have to prove the work you have hired the cleaning agency for was previously your duty.

You may visit a personal injury lawyer for consultation to understand the essential services that PIP in Florida will cover.

4.   Survivor’s Loss 

Losing a family member is one of the most difficult things anyone has to go through in their life. You may not think about dying soon, but unexpected accidents can happen at any time. That is why it is necessary to always have your legal aspects covered.

One of the things you can do to make your loss easier for surviving family members is to get personal injury protection. You may think “How does PIP work for survivor’s loss” if you pass away.

Well, the insurance policy will cover the income loss that your surviving family members will face after you pass away. This is especially beneficial if you are the breadwinner of your household.

This type of coverage is mainly payable for three years in most states unless your insurance company states otherwise. During this period, your family members can look for work and try to achieve financial stability.

5.   Funeral Expenses

If you or any passenger in your car passes away, PIP in insurance will cover funeral expenses. This will allow the loved ones of the deceased to achieve some financial relief. After all, preparing for a funeral is a difficult thing especially if your family finances aren’t stable.

The personal injury protection insurance will cover your cremation expenses in Florida. It will also pay for the burial expenses. This policy’s main purpose is to ease the suffering of your loved ones.

However, the funeral expenses your insurance agency will cover will have a maximum limit. If the bills exceed the limit, the remaining amount will have to be covered by the deceased’s family.

What Is Not Covered By No-Fault PIP Insurance In Florida?

An infographic explaining what is not covered by no fault pip insurance

Many people don’t know what is PIP insurance in Florida, so they don’t understand the things it does not cover. You may think since it’s an insurance policy, it will cover all life aspects.

However, that is not true. PIP in insurance does not cover the following things:

  • Property damage during the accident
  • Injuries of the other driver involved in the accident
  • Damage to your car
  • Any wounds that you receive if you get into an accident while performing a crime
  • Injuries that you experienced while receiving money for driving the car

Property damage mainly involves the damage to a third party’s property. Auto liability insurance policies cover such damages, not PIP.

Injuries of the other driver would mainly be covered by the insurance company of that person. Meanwhile, an example of injuries while receiving money for driving includes being the designated driver for drunk people.

How Does PIP Insurance Work?

The first thing you must do to avail the benefits of PIP in insurance is filing a claim. You must file a claim with your insurance provider to seek coverage for injuries due to the accident.

Every insurance provider will investigate the claim first to understand the conditions of the accident. They will also need to know the exact extent of your injuries and medical bills.

This is why you must submit the following documents to the insurance adjuster:

  • Record of all medical bills
  • Official bill of funeral expenses
  • Record of charges for childcare services

Once the investigation and processing are done, the company will pay the amount for specific damages. Remember some maximum caps may be applicable if your expenses are excessively high.

The company will make the payment directly to the relevant healthcare providers. This means you will not be in control of the checks.

If you opt for essential service benefits, the insurance company will pay the relevant service provider directly.

How Much Does PIP Insurance Cost In Florida?

Cost of pip insurance in Florida explained

The minimum cost for drivers of about age 35 in Florida is $1,000 per year. However, the amount varies according to different companies. Some insurance providers offer car insurance at a more affordable rate.

You should also understand that PIP is a policy that is additionally added to insurance coverage. So its amount also depends on the car insurance policy you intend to get.

Meanwhile, the cost of full or maximum coverage can be $3,600 or more. Always look at the factors of the original car insurance policy you are getting. Then, check the caps of personal injury protection insurance by the company.

These things will help you decide whether getting PIP insurance with a specific policy would be feasible.

Do You Need PIP Insurance?

Some US states require every driver to get a PIP insurance policy with their car coverage. This means you will have no option but to opt for it. One of the states that make it compulsory for drivers to have PIP is Florida.

However, in some states the coverage is optional. It is advisable to get this policy regardless of the requirement for PIP in insurance. That is because it can cover expenses during tough times such as severe car accidents or slip and fall accidents.

You will not have to worry about health insurance deductibles or medical bills when you have PIP. The coverage of lost wages is also good to have.

So while it may not be necessary to get PIP insurance, you should still opt for it to have a plan for unexpected accidents.


Is PIP Good Insurance?

PIP in insurance is good because it offers financial relief to you and your loved ones during accidents. It is also beneficial because not every at-fault party gives a payout to personal injury victims.

What Is The Difference Between Bodily Injury And PIP?

Bodily injury insurance plans cover the damages of people you injure in accidents by being at fault. Meanwhile, PIP is a no-fault insurance that covers your injuries and the passengers in your car.

In PIP, the fault of the driver is not taken into consideration but for bodily injury, it is checked which party was at fault.

What Is A PIP Case?

A PIP in insurance case is one in which you file a claim for personal injury protection. In such cases, there is no need to establish whose fault the accident was. The insurance company will cover your expenses in a PIP case.

What Is The Time Limit For PIP In Florida?

A person must seek treatment within 14 days of the accident to seek compensation through PIP in insurance. You will also have to pay the health insurance deductible if any within this time range.

If you exceed the time for PIP in Florida, you may not be eligible for its benefits.

Final Words 

This is your complete guide to what is PIP insurance in Florida. The main feature of this coverage is to protect you financially by covering different expenses.

Sometimes the caps of PIP in insurance may not cover your expenses completely. In such cases, you may hire a personal injury lawyer to file a claim against the at-fault party.

Bodily injury liability may help you seek compensation from the at-fault party if they have relevant coverage.

A personal injury lawyer can also help you file a PIP claim with your insurance adjuster. So be sure to contact us today for a thorough consultation to make an informed decision.

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