The PIP law was only in effect for two years before the state changed it. The reform came after a large volume of fake claims were filed with PIP.
In fact, the number of claims dropped from 712 in 2012 to just 328 in 2013. Also, any false claims that were filed or questionable claims dropped by eight percent per year. But, why was Florida forced to change this law and what types of fake car claims were filed?
Understanding PIP or Personal Injury Protection Insurance
PIP is used in no fault states as a way to cover medical expenses after an accident. Because Florida is a no fault state, drivers needed a way to cover their medical bills regardless if they or the other driver was at fault for the accident. However, PIP insurance is not for property damage.
Florida requires drivers to purchase PIP insurance. But, the amount they receive can vary. While this type of insurance only covers your medical expenses, it can also handle substitute expenses as long as they are related to your injury. For example, you can hire in-home care or even a cleaning service while you are recovering because you cannot do so yourself due to your injury.
Bodily injury liability insurance and PIP is not the same thing; but are often confused with each other. PIP only covers medical expenses, while bodily injury liability can cover legal fees as well as other payments to the parties you injured.
The original law said that insurance must be up to $10,000 for immediate coverage, which would reduce the number of personal injury claims seen in courts. But, Florida quickly noticed that drivers were abusing this insurance and seeking medical treatment for injuries they did not receive in the accident.
The Changes to PIP
Florida reformed their law in 2012 and it now requires injured parties to see a physician within two weeks (14 days) after the accident. Non-emergency claims are also limited to only $2500; therefore medical providers who were trying to engage in PIP schemes will be unable to receive the full $10,000 as they did before. And, if caught, providers will get a five-year license suspension on top of a ten-year suspension from accepting PIP claims.
Injured? Call an Attorney Right Away
While PIP insurance provides you with emergency funds, it will not cover the costs of your accident. You need to use other legal remedies to pay your extensive medical bills, long-term medical costs, and even your lost wages. The attorneys at Fetterman & Associates, PA can help you pay for those losses. Call us today at 561-845-2510 for a free consultation and let us help you with your car accident claim.