U3-L2-P1

3.2e: No-Fault

Other Requirements

Florida Statute requires all insurers to offer deductibles of $250, $500, or $1,000 on each application for PIP coverage. If an insured chooses a deductible when purchasing the insurance, only in the event of an automobile accident, the medical expenses will be reduced by the amount of deductible chosen. The $10,000 maximum benefit is NOT reduced by the deductible amount chosen.

Insurers are required to offer coverage, which coordinates with military benefits, or coverage, which excludes loss of time from work. The insured may choose to have these modifications applied to themselves, or to themselves and dependent family members. Other persons, as discussed later, may be covered by the insured's PIP coverage. If the PIP deductibles or limitations of coverage are elected by the insured, the deductibles and limitations chosen only apply to the insured and dependent members of the family. Even if the insured chooses deductibles or limitations, other parties covered by the insured's PIP coverage are not subject to the deductibles or limitations.

Primary/Excess

We previously discussed primary vs. excess liability coverage. PIP is primary (pays first) before any other insurance coverage except worker's compensation. Again under the indemnity concept, an insured should not benefit from claim payments. To prevent duplicate payments, an insured cannot claim other benefits or receive compensation from a third party for any PIP benefits paid. Claims against health or medical policies, disability insurance coverage, and medical payments automobile coverage will all deduct any PIP benefits collected by the insured.

The following question is a review of the content on this page. Answer it and then click below to check your response. (There will be more questions following this page)

What three deductibles may be offered with PIP?

Florida Statute requires all insurers to offer deductible of $____, $____, or $____ on each application for PIP coverage.