Understanding the Difference Between PIP and BI Coverage in Florida
While car insurance is a topic that is talked about all the time, it can be confusing, especially in Florida. You have probably heard the terms Personal Injury Protection (PIP) coverage or Bodily Injury (BI) coverage being thrown around, but do you really understand what they mean? Understanding the difference between these two types of car insurance is vital. Below, we provide a simple breakdown of how PIP and BI coverage work in Florida and their importance. We also share some information on another important type of car insurance coverage in Florida. Keep reading!
Understanding PIP Coverage
Florida Statutes section 627.736 requires all drivers to carry Personal Injury Protection. Personal Injury Protection (PIP) is a “no-fault” insurance system. In Florida, PIP covers your medical expenses and lost wages after a car crash, regardless of fault. This means that even if you are to blame for the accident, you can still recover compensation. Specifically, PIP covers;
- Up to 80% of your medical bills (up to the $10,000 policy limit)
- Up to 60% of lost wages if you cannot work due to your injury
- Costs for necessary services such as household assistance and childcare
If a collision causes a fatality, PIP can pay up to $5,000 in death benefits.
A vital thing to note is that, to access PIP benefits, you must receive medical treatment within 14 days of your accident. If you delay seeking medical attention, your insurance company may legally deny your PIP claim.
Understanding Bodily Injury (BI) Coverage
Bodily Injury Liability (BI) coverage is meant to protect you when you are at fault for a car accident. If you cause an accident, your BI coverage will pay for the other person’s medical expenses, lost wages, pain and suffering, and related damages up to your policy limits. The same is true if another driver’s negligence causes your accident. Their BI coverage will compensate you.
Florida does not require most drivers to have BI coverage. However, it is recommended. If you skip purchasing this type of insurance coverage, you may face expensive consequences. If you cause a serious accident and don’t have BI coverage, you could be personally liable for the victim’s medical expenses, lost wages, and other damages.
Typical BI policy limits in Florida are as follows;
- $25,000 per person or $50,000 per accident (minimum recommended)
- $50,000 per person or $100,000 per accident (better protection)
- $100,000 per person or $300,000 per accident (best coverage)
Uninsured/Underinsured Motorist Coverage
Another optional but important type of insurance in Florida is uninsured/underinsured motorist (UM/UIM) coverage. UM/UIM coverage steps in when you’re involved in an accident with an uninsured or underinsured motorist. With UM/UIM coverage, your own insurance company pays for your damages as if the at-fault driver had proper coverage.
The smartest thing to do as a driver in Florida is to have a combination of PIP, BI, and UM/UIM coverages. It is also recommended that you have coverage for property damage.
Legal Help Is Available
In the event of an accident, our Orlando car accident attorneys at The Pendas Law Firm can help you understand your insurance limits and available options. You can reach us by calling 844-200-0000.
The Pendas Law Firm also represents clients in the Ocala, Bradenton, Daytona Beach, West Palm Beach, Fort Myers, Fort Lauderdale, Miami, Naples, Melbourne, Tampa, and Jacksonville areas.