Having an auto accident insurance policy is vital if you drive. Still, with all the different types of coverage available, it can be challenging to understand which one is right for you. The two main auto accident insurance policies are bodily injury liability and personal injury protection. But what are they, and how do they differ?
Personal Injury Protection
Personal injury protection, or PIP as commonly called, typically covers medical expenses resulting from an accident regardless of who was at fault. This is a no-fault type of coverage. All owners of motor vehicles registered in Florida are obliged to get PIP coverage.
In Florida, the PIP maximum amount of coverage is $10,000 and it pays 80% of medical bills and 60% of provable loss wages. The expenses covered by PIP coverage include:
- Costs of disability or rehabilitation.
- The income lost if unable to work due to injuries.
- $5,000 in death benefits. These are payments made to the next of kin in the event of the insured’s death.
- Medical expenses, including ambulance service and hospital costs.
Limitations of the Personal Injury Protection Policy
Personal injury protection is a great way to provide the medical coverage needed following an accident. However, this type of coverage has its limitations. Since the inception of the no-fault law in 1971, the claims limit has stayed at $10,000. As a result, despite escalating medical-care expenditures, there has been no rise in the PIP insurance cap in over 50 years.
- A PIP benefit is no longer available to help injured people cover the cost of particular therapies. Acupuncture and massage therapy were included in the list of therapies that are no longer covered by PIP insurance due to the law’s amendment in 2012. As a result, injured drivers can no longer claim reimbursement for the expenses of these treatments.
- There are instances where a claim may be delayed, even though the no-fault system is intended to pay for medical expenses promptly. One will have to wait longer to learn if he/she will receive compensation. This is because an investigation will have to be conducted to determine whether the claim is legitimate or false. The insurance company will need to investigate your claim in this case before determining whether to pay compensation. This may cause a tense delay and further anxiety for wounded parties making sincere claims.
- The right of an injured individual to sue the other motorist for non-medical suffering is severely constrained under Florida’s no-fault statute. The implementation of the no-fault law made it far more challenging to sue the driver at fault for emotional and mental suffering resulting from the collision.
Bodily Injury Liability
Bodily injury liability reimburses third parties for costs and effects of an injury sustained due to the insured’s negligence or recklessness. Only third parties hurt by the insured are eligible for this coverage; the insured and/or their passengers are not. This coverage does NOT provide money damages to you and your family due to injuries, it is designed to protect your assets. The only insurance coverage that provides money for damages to you and your family because of bodily injuries is Uninsured/Underinsured Motorists coverage. In Florida, you are unable to purchase Uninsured/Underinsured Motorists coverage, until you first purchase Bodily Injury liability insurance coverage.
Bodily injury liability coverage is not mandatory in Florida. It is optional and even affordable under certain circumstances. In some cases, such as when purchasing a used vehicle’s insurance policy, the option to purchase bodily injury liability coverage may be available under certain circumstances. Bodily injury liability covers the insured when another party sues the insured due to injuries sustained in a car crash caused by the insured.
Below are some, but not all of the expenses covered by Bodily injury liability insurance:
- Bodily injury liability insurance can assist in paying benefits for time lost from work due to accident-related causes. If the injured parties are forced to leave work or cannot fulfill their work duties due to their wounds or continuous medical treatment, this coverage covers the income that the injured parties would have earned.
- Claims may occasionally entail money when emotional distress or protracted pain following an injury.
- Medical costs, including hospital bills, ongoing care charges, and emergency care services.
Looking for an Insurance Dispute Attorney
If you feel you are being taken advantage of by the insurance company representing someone that has injured you or your loved one, it may make sense to hire an attorney. A personal injury attorney can help you evaluate the validity of your claim and take the appropriate legal action.
An insurance dispute attorney can help you navigate Florida’s no-fault laws and other insurance-related issues, such as filing a claim protest and insurance fraud claims. In addition, a personal injury attorney can assist you with legal action for the wrongful death of a loved one.
Finding the right insurance dispute lawyer can be difficult. However, at Bodden Bennett Law Group, we have the experience and knowledge to assist you in getting the compensation that you need to recover from your accident. From auto accidents to personal injuries, we are here to help.
Our team of dedicated insurance dispute attorneys has over 50 years of experience in helping injured individuals get the compensation they deserve. Contact us online or call (561) 806-5229 today to schedule an appointment with us and learn more about your options.
