The World of PIP Insurance

crash-car-1180834-300x242The Perazzo Law Firm Shares Latest, Important Developments Regarding PIP Insurance

Orange County, Florida – PIP insurance or Personal Injury Protection, has the world of motor vehicle insurance providers on tenterhooks as the Supreme Court rules against an insurance company and in favor of the Florida Hospital Medical Center in the 5th District Court of Appeal. Personal Injury Protection(PIP) is mandatory insurance coverage for all registered vehicle owners in the state of Florida and serves to cover up to $10,000 in medical bills, damages, or losses stemming from a motor vehicle accident regardless of which driver was legally found at fault. Nevertheless, not everything is as simple as it seems as insurance providers as well as healthcare providers are all looking out for their best economic interests. Thus was the underlying basis for the PIP case brought on by the Florida Hospital Medical Center, which held the Progressive Insurance Company liable for $200 in unpaid reimbursement for medical services rendered to one of their policyholders. A Progressive Insurance customer, a car accident victim, suffered personal injuries that accounted for $2,781 in hospital expenses. According to the official court records, his PIP insurance policy had a $1,000 deductible which the hospital subtracted before calculating the total amount using the formula under Florida PIP law. It turns out that the insurer did not apply the same method for determining the legitimate amount owed to the hospital and reached a total amount due of $868. This $200 difference, brought-on by subtracting the car accident victim’s  $1000 deductible, prompted the legal battle by the Florida Hospital Medical Center. The case, which has insurance providers around the USA on edge, ruled against the formula used by the insurer company to calculate the amount owed. The decision was based on the grounds that the insurance company should apply the deductible to the overall charges in line with the statutory provisions. The ruling will ultimately lead to all insurance providers in Florida ultimately having to pay more to hospitals and healthcare practitioners treating motor vehicle accident victims.

So where does PIP stand now? The new rule states (in a nutshell) that the deductible needs to be exhausted at the start. Statutorily, the minimum deductible is $1,000, so the first $1K is the responsibility of the insured person and the insurance provider doesn’t have to pay it. Until now, the insurance company was spreading out the deductible.

PIP hits the Senatecapitol-dome-1207905-291x300

Florida: The US Senate is set to weigh-out the merits of repealing Florida’s PIP law, which dictates that all registered motor vehicle owners carry personal-injury protection insurance to help cover medical or funeral benefits following an accident in Florida. The PIP law (which is applied in only ten other US states) was passed in 1972 and requires drivers to carry $10,000 in personal-injury protection and aimed to reduce lawsuits  from injuries and damages in motor vehicle accidents. The law clearly favors the insurance policyholder no matter if he/she was at fault and covers both drivers, passengers, or victims involved in the accident. 80% of the medical expenses are covered by PIP and the amount drops to $2,500 if no emergency medical treatment was needed following an accident. Policyholders in Florida also receive 60 percent of any lost income as a result of the accident, with wrongful death (if determined) representing $5,000 in benefits. The Senate is set to meet in January to determine the future of PIP coverage in Florida.

Perazzo Law Shares Insight into PIP Insurance emergency-worker-1440096-300x288

PIP insurance is mandatory for registered vehicle owners and operators in the State of Florida. PIP insurance covers medical expenses to the injured parties in the insurance policy holder´s vehicle. In some cases, it may cover lost wages, damage to property, and more. Ideally, PIP in Miami is paid without regard to who is legally liable regardless of who is responsible for the accident. In most cases, the insured driver of the vehicle presents the claim to his/her insurance company. However, there are exceptions that may apply which allow individuals that have suffered personal injury as a result of the accident in any Florida City We Serve, to make their own PIP claim. Our dedicated and professional insurance claims lawyers can provide all the right answers to any questions concerning PIP Insurance in Miami-Dade or Broward Counties.

Personal Injury Law

If you, a family member, or loved one, has a PIP insurance claim to consult about, the Perazzo Law Firm’s PIP litigation attorneys urge you to contact their Miami or North Miami Beach offices Online or Call (786) LAWS-411 for a FREE initial consultation.

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