Florida is a no-fault auto insurance state. This means that if you’re injured in a car accident, your insurance company covers your medical expenses, regardless of who caused the crash.
By law, Florida drivers must carry at least $10,000 in personal injury protection (PIP) coverage.
However, this minimum amount isn’t always enough to cover all accident-related costs. Plus, PIP only covers economic damages like medical bills and lost wages, leaving out non-economic losses such as pain and suffering.
This article explains what PIP covers and what to do when your PIP benefits run out or if you need compensation for non-economic damages.
Your Medical Bills Are Paid, Regardless of Fault
After a car accident, determining fault can take months. Negotiating an insurance settlement may take even longer. This can cause long delays in accessing funds to cover medical treatment.
With PIP, your medical expenses are reimbursed quickly, regardless of fault. In Florida, PIP covers 80% of your medical expenses and 60% of lost wages.
However, PIP claims aren’t always straightforward. For example, insurance companies are known to limit claim payouts. This means the company may question your claims and delay settlement.
Apart from protecting their bottom line, insurance companies also aim to prevent fraudulent claims, which are a serious problem in the industry. If they suspect that a claim isn’t genuine, they may take more time to investigate it. A simple document error can result in denial or a long delay in processing your claim.
Working closely with an experienced car accident injury attorney can ensure you receive fair and prompt compensation.
How to File a PIP Insurance Claim
Time is of the essence when filing a PIP claim. First, it’s crucial to seek medical attention immediately after the accident. In Florida, you must receive medical treatment within 14 days after the crash to be considered for PIP benefits.
Second, file your claim as soon as possible. When filing your PIP claim, your insurance company will need proof of your injuries and treatments. This means you should get a thorough medical examination and keep all medical records and bills for your claim.
How Long Does PIP Compensation Take?
The PIP is designed to provide quick recovery for eligible accident-related damages. You can generally expect compensation within 30 days of submitting your claim and proof of injuries and financial losses.
However, delays can happen. If the insurance company suspects fraud or requires additional information, it may take longer to pay your claim.
If there is no valid reason for the delay, your attorney can issue a demand letter for immediate payment. The demand may include interest and penalties for the overdue payment. If the insurance company refuses to pay as demanded, you can file a lawsuit to recover your compensation.
What to Do If Your Losses Exceed the PIP Limit
While the basic PIP coverage provides up to $10,000 for medical expenses, many car accidents result in severe injuries and staggering medical bills. For instance, if you suffer a spinal cord injury, the first year of treatment can cost more than $1 million.
This means you could face steep medical bills after exhausting your PIP benefits. Additionally, PIP doesn’t include compensation for pain and suffering.
Depending on the severity of your injuries, you may have additional sources of compensation beyond the PIP coverage. If your medical bills exceed your PIP limit or you need compensation for non-economic losses, speak to an insurance claim attorney to discuss your options.
Seeking Compensation From the At-Fault Driver, Their Insurance, or Employer
If your PIP benefits aren’t enough, you can file a claim against the at-fault driver, their insurance, or their employer.
You may pursue the at-fault driver personally with a lawsuit. The problem is that the driver may not have enough money to compensate for your losses.
If the driver has bodily injury liability coverage, you can file a claim with their insurance company. However, bodily injury liability coverage isn’t a mandatory requirement in Florida, so the driver might not have this insurance.
You might also pursue the driver’s employer if the driver was on duty when the accident happened. Depending on the circumstances of the accident, the employer may be liable for their employee’s fault.
To pursue compensation beyond PIP, your injuries must be extreme, such as permanent disability. Also, you must act quickly if you’re considering suing for compensation.
In Florida, you have two years to file a personal injury lawsuit for compensation. The count starts from the date the accident occurred. Missing this deadline can prevent you from recovering additional damages, which can leave you stranded with huge medical bills.
How Much Are Non-Economic Damages Worth?
In auto accident claims, non-economic damages include pain and suffering, permanent disabilities, and emotional distress. These damages often account for the largest portion of personal injury settlements. This explains why they’re typically the most bitterly contested in accident claims.
Determining the financial value of non-economic damages is often challenging. However, two techniques are commonly used to estimate pain and suffering damages:
Multiplier Method
This method uses your economic damages as the basis for calculating non-economic damages. It involves multiplying your economic damages by a factor depending on the severity of your injuries.
The factor is typically between 1.5 and 5. For example, if your economic damages are $40,000 and a multiplier is 3, your non-economic damages would be $120,000.
Per Diem Method
This approach is based on what a day is worth to you. It involves determining the number of days you would experience pain and suffering and assigning a monetary value to each day of pain. You will then be paid a fixed dollar amount for each day you’re expected to endure the pain.
Since these methods aren’t exact, proving your non-economic losses often requires solid evidence and expert testimony to back up your claims. An experienced attorney can help estimate your damages more accurately and negotiate a fair settlement.
Seek Legal Guidance to Explore Additional Compensation Sources
While your PIP insurance may only cover a limited amount of medical expenses and lost earnings, you may be entitled to substantial compensation from other sources.
If you have been injured in a car accident and need compensation, it’s important to seek legal guidance to explore your options. Consulting an experienced insurance claim attorney can help you maximize your recovery and secure a quick settlement.
