Florida No Fault Info Center

New:  Click here for 2013 Florida No-Fault Info


Florida is a “no-fault” state. The no-fault concept requires each of us to self-insure for our own auto accident-related medical treatment. We do this through the purchase of Personal Injury Protection (PIP) insurance coverage. An unusual aspect of Florida insurance law is that the state required minimum coverage includes only Property Damage (to repair someone’s property when we are at fault) and PIP (to pay our own accident-related medical expenses at 80%). Florida does not require any of us to purchase Bodily Injury Liability coverage, which is coverage that would pay for bodily injury to the other party when we are at fault. Therefore, when someone says they are “fully insured” in Florida, it does not necessarily mean that they have anywhere near adequate coverage for themselves.

We are constantly asked by clients why their insurance company has to pay their medical expenses when the other party was clearly at fault. The answer is simple; Florida law requires it to be done that way.

The minimum required in Florida is $10,000.00. However, deductibles have been available in varying amounts up to $2,000.00 in the past. Under current law, the PIP deductible available for purchase cannot exceed $1,000.00.

Is a  motorcyclist required to purchase coverage on their motorcycle under Florida Law? What happens when a motorcyclist is injured in an accident that is not the motorcyclist’s fault? Click here to read the answer to these questions.

How PIP Works

Following an auto accident, generally PIP allows you to see any doctor of your choosing unlike an HMO or managed care plan which may limit or dictate your choice. When you visit your treating doctor, you should advise them that you are there because of an auto accident and provide them the information on your PIP policy. When your doctor submits your bills to PIP, they will be paid 80% of the “reasonable and customary” expenses related to your treatment. You will begin to accrue an unpaid balance of the 20% not covered by PIP.

If you have MP (Medical Payments) coverage on your auto policy, it will pay the 20% as it is incurred. If you have no MP coverage, the 20% becomes part of your claim against the at-fault party’s Bodily Injury Liability coverage and will be included in any final settlement with the insurance company. While waiting for your case to settle, your doctor may request that you sign a Letter of Protection (LOP). This is an assurance by you and your attorney that the unpaid expense will be paid out of the settlement of your claim. Any request for a LOP by your doctor should be discussed with my office before you sign.

You may treat under PIP until your benefits are exhausted or are terminated by your insurance company following an Independent Medical Examination (IME) The settlement of your Bodily Injury Liability claim at the conclusion of your case does not affect your ability to receive treatment using your PIP. They are completely unrelated. If you are notified of one of these examinations you should discuss it with my office. In the event the IME recommends no further treatment, we will discuss whether you may transfer your treatment to another specialty or whether we will refer you to an attorney to sue your PIP carrier to challenge the IME and seek to continue your PIP benefits. Attorney fees you may incur in a PIP suit are paid by your insurance company when you win the claim.

Lost Wages

Should your treating physician write an order or prescription taking you off work for any period of time after your accident, your PIP will pay you 60% of your average weekly wage. Your employer will be asked to prepare a Wage and Salary Verification form showing your gross wages for the 13 weeks preceding the accident. There are alternative ways to calculate your average weekly wage if the Wage and Salary Verification would not apply or not fairly represent average wages for you.

You must submit the completed wage verification form to your PIP carrier. We can assist you in getting this done timely. It generally requires your employer’s cooperation. The PIP carrier must begin providing the PIP wages within 30 days of submission of the completed wage loss application, Wage and Salary Verification and physician off-work slips.

The 40% of your wages not covered by PIP becomes part of your damages claim against the at-fault party’s insurance company. Bare in mind, they will make one payment to you to settle your claim. The at-fault party’s insurance carrier will not pay wages or unpaid medical bills as they accrue, nor will they agree to cover your need for future medical care other than through lump sum settlement. These items become part of your overall economic damages claim, together with your pain and suffering and non-economic damages.

PIP Limits

When you purchased your auto insurance coverage, you selected your PIP limits, traditionally $10,000.00. Higher limits are available. Every bill you incur will reduce your benefits. For that reason, we encourage you to be proactive and to be aware of what you are being charged, the necessity of the treatment and its frequency. Call my office if you have any concerns about medical costs you are incurring. Request a print out of your charges on a regular basis, such as weekly or monthly. If you are not progressing in your treatment, discuss other options with your physician.

Bare in mind, you have a limited amount of PIP benefits. Those benefits will pay for medical treatment and lost wages. When your PIP carrier has paid out the limits of your PIP policy, whether for wages or medical bills, their obligation to you is exhausted.

Reserving Your PIP Benefits For Wage Loss

Following an accident, your treating doctor may order you not to work because of your injuries. You may be restricted from work for an extended period of time. In such a case, you should discuss with me whether it would be in your best interest to request that your PIP insurer reserve your PIP benefits to pay your wage loss before paying medical bills. Otherwise, medical expenses submitted by medical providers could be paid first and diminish or eliminate the PIP funds otherwise available to pay for your lost wages. This could create a greater financial hardship to you. Be sure to notify my office at your earliest opportunity if it appears you may be out of work for an extended time. We will discuss how this option may affect the payment of your anticipated medical care.

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Florida, personal injury lawyer Charles S. Philips represents clients throughout the Tampa Bay area, including the communities of Bayonet Point, Brooksville, Clearwater, Holiday, Hudson, Inverness, Largo, Palm Harbor, New Port Richey, Seminole, Spring Hill, St. Petersburg, Tampa, and Tarpon Springs.

With our main office in New Port Richey and satellite locations in Clearwater, Inverness, Spring Hill, and Tampa, The Law Office of Charles Philips is able to serve residents of Citrus, Hernando, Hillsborough, Pasco and Pinellas Counties in their time of need.