Insurance is a confusing concept for a lot of people. Often you may think am I just paying this extra fee that I could potentially never use. It can be quiet confusing when trying to figure out “Do I really need this insurance?” or “Do I really need another bill to add to the month?”. But it is absolutely necessary to have either PIP insurance or Med-Pay. The main goal of is for you to not owe thousands of dollars if you are injured, PIP can help you achieve that.

The most likely reason someone would not carry PIP or Med-Pay is because of cost. Especially with COVID-19 in the back of our minds, we are trying to save every penny. It is also very common for someone to just simply forget to check the box on their insurance application and all of sudden you are not insured by PIP. Making sure you have an insurance agent present when doing this application, so you do not miss this important step.

When thinking about price, it is up to you as the holder. You can pay as little as $50 a month to a couple hundred. This is dependable on the age you are, what type of car you drive, and the amount of coverage you want.

WHAT IS PIP?

PIP stands for Personal Injury Protection, also known as Med-Pay. It is an addition to your auto insurance that covers your medical expenses in case of an accident. In some instances, PIP can even pay for lost wages.

When using PIP it covers you, the driver, and any passengers in the vehicle as well. Whoever is injured in the situation would use their insurance policy. There is only one exception in this scenario, if you are a pedestrian or a bicyclist you would be insured by the driver that hit you.

FLORIDA SPECIAL FEATURES

In Florida if you are injured in an accident or disabled, PIP pays for 60% of your lost wage and can get up to $10,000 in medical bills. They will even include services like daily chores like laundry, taking care of a house, or even taking care of pets. Florida also has death benefits (I know straight to the point), if the policyholder is killed you are entitled to $5,000 for those associated costs.

MED-PAY COVERAGE

Med- Pay is like PIP in the sense that it covers the policyholder, other drivers listed on the policy, members of the insured household, and passengers during the accident. The difference is that Med Pay only covers “direct medical or surgical care related to physical injuries that result from the accident”. Med-Pay covers medical expenses, hospital expenses, dental care, and funeral expenses. They do not cover psychiatric treatment, childcare, lost wages, or losses for surviving dependents.

Med Pay can also advance your standard health insurance after an accident. It can also help pay for your health plan’s deductible, as well as other out-of-pocket medical expenses not covered by your health plan. A plus of Med-Pay has no deductible or copay unlike most health insurance plans.

In the state of Florida, PIP is required by law for anyone that owns a motor vehicle registered in the state. This is different than other states who allow the owner to opt out of PIP insurance. The reason Florida does this is because of all the reckless drivers in Florida. This makes sure that everyone is protected and can financially recover from an accident.

 WHY IS PIP INSURANCE IMPORTANT?

A big problem in the United States is that people are illegally driving around without insurance. This is not just a problem for the government but also you as an individual. If one of those people who are uninsured hit you, you could be liable for your own injuries.

A huge reality to take in place is that most people have the bare minimum insurance policy for the common reason of keeping your bills lower (we all have done that before). But the truth behind it is if you get an accident, you could have thousands of medical bills that you will most likely not be able to pay for, which is a scary situation for anyone to be in. Having good insurance and PIP on top of that you’re guaranteeing yourself that you will not be put into financial distress, if an auto accident were to occur. 

Living in Florida, they make it easy for you, you must have PIP insurance. This is really setting you up for success in case of an auto accident. The most important thing to get out of all of this is that you take advantage of your PIP benefits. Know your rights and benefits you deserve.