Florida Auto Insurance Consumers Need to Understand PIP Coverage

Personal Injury Protection is required of motorists in the Sunshine State, and Floridians need to understand what it is and consider whether to go above the minimum required levels.

Online PR News – 27-August-2010 – – Every motorist in the Sunshine State is required to carry valid auto insurance or face a fine. What those motorists may not know, though, is that being covered at the state’s minimum levels may still lead to a situation in which they have to pay a relatively sizable sum in the event of an accident. This is because Fla. minimum levels of coverage are low compared to most states, and driver would be well-advised to shop around and carefully consider all available options.

In order to be in compliance with state law, a standard Sunshine State driver’s minimum coverage must total at least $20,000 — that’s $10,000 for Personal Injury Protection (PIP) and $10,000 for Property Damage Liability (PDL). In some cases where a driver has had certain traffic violations, he or she may be required by law to acquire additional coverage; but a driver who does not fall into this classification may be required to only obtain the standard PIP and PDL levels. Still, consumers should always conduct a Florida auto insurance comparison in order to evaluate a variety of carriers.

PIP insurance is called no-fault insurance because it may pay for medical damages up to the limits of coverage, regardless of which party is responsible for the accident. According to the state’s Department of Financial Services, "Lawmakers designed PIP to help reduce the need for Floridians to sue to cover injuries resulting from automobile accidents.” Drivers should keep in mind how PIP coverage works, as it is somewhat complicated. Even if a motorist with $10,000 worth of PIP coverage gets into an accident that leaves him or her with $10,000 in medical bills, this doesn’t necessarily mean that he or she will owe nothing. This is because the provisions of many PIP policies hold that only 80 percent of medical bills, up to the limit, may be covered, meaning that person with $10,000 in medical bills and up to $10,000 of coverage would most likely have to pay the remaining $2,000. This sum could get larger, too, depending on the size of the deductible.

Source: http://www.myfloridacfo.com/Consumers/Guides/Auto/docs/autoGuide2008.pdf

With such complicated issues involved, shoppers need to get as many perspectives as possible and to make coverage decisions carefully. Consumers can visit http://www.onlineautoinsurance.com/florida/florida-auto-insurance-quote-comparison.htm to learn more about coverage matters in the Sunshine State and to get a free, personally tailored quote comparison.

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