Florida Auto Insurance Explained: Liability

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In regards to insurance, Florida is considered a No Fault state; this title can be a little confusing especially when you are cited for causing an accident. No Fault refers to the type of insurance in Florida and nine other states that requires licensed drivers to carry personal injury protection (PIP). This insurance mandates that each party’s own insurance cover’s their injuries for a minimum of $10,000, depending on the coverage purchased. PIP insurance provides coverage for medical benefits, lost wages, and funeral benefits for the insured or their resident family member(s) when injured in their own vehicle, in someone else’s vehicle, or as a pedestrian/ bicyclist.

In order to combat high insurance fraud, the Florida Legislature amended the PIP law to include the requirement of injured persons filing a claim under PIP to seek medical treatment within 14 days of the accident.

An emergency medical condition (EMC) must be diagnosed by a licensed professional within this time frame in order to be eligible for the full $10,000 in PIP benefits. An EMC is defined as an injury or condition that if not treated could result in jeopardy of health, impairment to bodily functions, or dysfunction of any bodily organ or part. If an EMC is not diagnosed, PIP benefits may be reduced to $2,500 and bodily injury may be difficult to get.

PIP is the only insurance legally required in Florida but there are other types of liability insurance that are available and beneficial if you are involved in an accident.

Bodily injury (BI) provides coverage for death or serious permanent injury to other parties when you are legally liable for an accident. Once the injured party’s PIP has been exhausted they can still recover damages from the at fault driver’s bodily injury coverage. Uninsured motorist (UM) provides additional coverage to the insured, resident family members, and any other person occupying the covered vehicle for bodily injury in the event the at-fault driver is uninsured or under-insured. Other lesser known types of liability insurance include medical pay (Med Pay), coverage for medical treatment of insured and occupants resulting from an auto accident regardless of fault, and property damage (PD), coverage for damage or destruction of property resulting from the negligent acts or omissions of the insured.