Is PIP required in Florida? This question is about Personal Injury Protection (PIP)

Is PIP required in Florida?

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This question is about Personal Injury Protection (PIP)

Merrill Burchell, Car Insurance Writer

@merrill_burchell • 08/28/20 This answer was first published on 09/25/19 and it was last updated on 08/28/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Florida requires $10,000 of personal injury protection, or PIP coverage, for every car registered in the state or driven within the state for more than 90 days in a 365-day period. So even if you’re a seasonal resident or long-term visitor to Florida, you may need to carry Florida’s minimum PIP coverage. Florida PIP covers medical costs, lost wages and death benefits. It can also pay for at-home services like laundry, house cleaning and pet care, if they’re necessary due to an accident. PIP not only protects you while you’re driving, but also if you are injured in an auto accident while riding in someone else's car, walking, or riding a bike.

Florida PIP coverage is also called Florida no-fault insurance. It pays policyholders for their own medical expenses after an accident, regardless of fault. PIP offers injured parties up to $10,000 in immediate medical coverage, without going through the lengthy process of establishing fault through the courts.

Florida’s no-fault regulation is limited, however. When an accident causes injuries that are serious (costing more than $10,000 in medical expenses and/or lost wages) or permanent, Florida acts like an at-fault state. The victim is then allowed to sue the at-fault driver for losses. The at-fault driver must compensate the victim through bodily injury liability insurance or personal assets.

In Florida, you can choose whether you want your PIP to cover just yourself or every resident in your household. In other states, like Michigan and New Jersey, PIP automatically covers all household members. Florida PIP is also different from other states because it covers only 80% of your medical expenses and 60% of your lost wages. For example, if your medical bills are $10,000, PIP will cover $8,000 of them.

If your injury is not considered an emergency, your benefits are limited to only $2,500. And if you don’t receive medical treatment within 14 days of the accident, you’ll receive nothing. If you die in a vehicle accident, Florida PIP will pay your family up to $5,000 for funeral expenses.

Answer Question

Do you really need uninsured motorist coverage in Florida?

No, uninsured motorist coverage is not required in Florida, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $10,000 in uninsured motorist bodily injury coverage per person (up to $20,000 per accident).

For Florida drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.... read full answer

Why You Should Get Uninsured Motorist Coverage in Florida

Normally, an at-fault driver’s insurance helps pay for any damage after an accident. However, if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That’s where this optional insurance coverage can help you save time and money.

Even though Florida does not require uninsured and underinsured motorist coverage, you should still consider buying it. In Florida, an average of 27% of drivers on the road don’t have car insurance, which means there is a 1 in 4 chance that the other driver won’t have coverage if you get into an accident. Car accidents in Florida can be very expensive, too.

Key Facts About Uninsured Motorist Coverage in Florida:

Minimum Uninsured Motorist Bodily Injury: $10,000 per person and up to $20,000 per accident

Uninsured Drivers on the Road: 27%

Crashes per Year: 403,626

Odds of a Crash with an Uninsured Driver: 1 in 4

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What kind of car insurance do I need in Florida?

In Florida, drivers need two kinds of insurance, $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). Florida law also requires this car coverage on any vehicle driven in the state for more than 90 days during a 365-day period. That’s important because Florida has a large population of “snowbirds,” who live there part of the year and spend part of the year in other states. They may have out-of-state registrations and licenses, but Florida’s minimum PIP and PDL insurance requirements apply to them.... read full answer

Also called Florida no-fault insurance, Florida PIP insurance covers 80% of your medical expenses and 60% of your lost wages, regardless of who causes an accident. PIP coverage also protects you if you are injured in an accident with a motor vehicle while riding in someone else's car, walking, or riding a bike. Property damage liability coverage pays for damage you cause to other people's property in a car crash.

Florida’s minimum insurance requirements don’t provide much protection, however. You should think about raising the limits and adding other useful coverage. That might include bodily injury liability, collision, medical payment, or uninsured/underinsured motorist coverage.

Florida Car Insurance Requirements

Personal Injury Protection: $10,000 of coverage is required.

Property Damage Liability: $10,000 of coverage is required.

Collision (optional): Pays for repairs to your vehicle even if an accident is your fault.

Medical Payment (optional): Pays the 20% of medical bills that PIP does not cover, plus amounts over $10,000.

Uninsured/Underinsured Motorist (optional): Pays your claims if the at-fault driver has little or no liability insurance.

Bodily Injury Liability (optional): Pays for the other party’s medical bills and/or lost income over $10,000 if an accident is your fault. Coverage is commonly $100,000 per person, up to $300,000 per accident.

As a “no-fault” state, Florida allows you to drive legally without bodily injury liability insurance. Each person’s own PIP or no-fault insurance pays out for their injuries, no matter who causes an accident. However, Florida’s no-fault law is limited. When a victim’s injuries are permanent or serious (costing over $10,000 in medical bills and/or lost income), the injured party can sue the at-fault driver for losses. This makes it very smart to carry bodily liability insurance, which will provide you with defense in court and pay these claims up to the policy limit.

It can be tempting to save money by purchasing only the minimum coverage required in Florida. But that can leave you with high out-of-pocket bills if you’re ever involved in an accident. Compare quotes on all your insurance options so you can make an informed decision.

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Is Florida a no-fault state?

Yes, Florida is a no-fault state. Florida being a no-fault state for car insurance means all Florida drivers are required to purchase personal injury protection (PIP) insurance to cover their own medical bills after an accident regardless of who was at fault. Additionally, no-fault laws in Florida place limitations on a driver’s right to sue after an accident. Drivers in Florida can only sue if the injuries are permanent or the accident resulted in more than $10,000 in damages.... read full answer

Florida uses a pure comparative negligence system, meaning drivers can collect damages proportionate to their fault in causing the crash. For example, if they're 99% at fault, they can get 1% from the other driver.

Key Things to Know About No-Fault Insurance in Florida

Faster payouts. Police and your insurance company don't need to fully investigate the accident’s cause before you can get paid for your medical bills. As a result, your bills get paid more quickly than they would in a tort state, where fault for the accident determines the payout.

Coverage for medical expenses. Another benefit of having to carry PIP insurance is the knowledge that you're covered no matter who causes an accident. That can make driving in Florida a bit less nerve-wracking.

Higher premiums. Car insurance in Florida costs $2,313 per year, on average, while the national average cost of car insurance is $1,407 per year. States with no-fault laws typically have higher average car insurance costs due to the required PIP insurance.

Property damage is not covered. No-fault rules don’t apply to property damage. One or more drivers will be at fault after a collision, no matter which state you live in. The police and insurance companies consider Florida law, the circumstances of the collision, and drivers’ testimonies before deciding who is at fault.

To learn more, check out WalletHub’s guide to no-fault insurance.

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