- Florida maintains its no-fault status to reduce the number of small claims suits. Since every Floridian insurance carrier pays the injuries and damages for its own policyholders, the policyholders are less likely to litigate against one another for minor injuries and damages. As a result, accident litigation is generally reserved for extensive injuries and damages that exceed the coverage limits of the policy or that result from gross negligence.
- PIP, or personal injury protection, provides a maximum of $10,000 for injuries that are incurred during an accident. This protection provides coverage for the driver of the vehicle, as well as the driver's passengers. This personal injury protection coverage provides protection for all drivers that are listed on the insurance policy. Since the coverage is no-fault, there is no delay in the coverage's payout because the coverage can be used even while the accident is under investigation.
- Bodily injury and property damage protection, or BI/PD, is an optional coverage in Florida. This coverage provides protection when you are deemed at fault for an accident. The coverage pays up to the selected coverage amount for the other party's injuries and property damage. In Florida, PIP always pays first. Therefore, BI/PD only applies after the maximum PIP amount has been exhausted.
- Uninsured motorist, under-insured motorist and uninsured motorist property damage coverages, or UM/UIM/UMPD, provide coverages to the driver of an accident when the other party is uninsured or under-insured. This coverage is also optional in Florida and pays out only after the PIP amount has been exhausted. Like BI/PD, this coverage only pays out after the accident investigation has been completed. This coverage is used when the other party is deemed at fault.
previous post