What is Personal Injury Protection Coverage and Why Is It Required?

close up of a silver car with smashed front bumper

Understanding Personal Injury Protection Coverage

Also known as “no-fault insurance,” Personal Injury Protection (PIP) coverage is an additional package on top of your normal insurance plan that covers any kind of medical expenses after an accident. Currently there are 10 states, including Florida, that require motorists to secure this kind of plan in addition to the liability coverage they already have. It is recommended that all motorists obtain a minimum of $10,000.

Why Does Florida Require PIP?

According to the Florida Office of Insurance Regulation (FLOIR), the state implemented their PIP coverage rules in an effort to reduce the turnaround time for injury payments. They also were looking to cut down on the number of court cases dealing with injuries from motor vehicle accidents. However, the agency also acknowledges that requiring this kind of coverage has come with its own set of problems.

Issues with Florida’s PIP Laws

In the early 2010s, Florida insurance providers noticed an increase in the amount of PIP claims and payments, even though there was limited change in motor vehicle accident rates. To combat this and PIP fraud claims, the state passed legislation outlining revised responsibilities of motorists in crashes and what specifically can be considered fraud in personal injury cases.

FLOIR analyzed the implications and impact of this bill in a 2016 study. Here were their major findings:

  • The frequency of PIP claims decreased by 10.2%.
  • Claim severity decreased by 10.9%.
  • There was an estimated 0.5% reduction in PIP claim costs that can be attributed specifically to the bill passed.

The study also indicated that there could be a correlation between this bill and the number of people who reported being injured in motor vehicle accidents. Either way, it does show that while there may have been some issues with people exploiting the system, the need for PIP after an accident is there.

Car Accident? We Can Help

With new laws comes a new set of challenges for Florida motorists. That’s why Law Offices Cytryn & Velazquez, P.A. has been dedicated to helping Broward County residents obtain maximum compensation for their injuries for decades. If you or a loved one is struggling to get back on your feet after a car accident injury, we are here to help. Call (954) 833-1440 or fill out our contact form to schedule a consultation.