PIP is an abbreviation that stands for Personal Injury Protection and it is a car insurance extension providing coverage of medical expenses for damage incurred on a person as a result of a car accident. It is also known as “No-fault” coverage since the laws are called no-fault, meaning that the coverage is issued regardless of the liability. More simply put in case there was an accident and a driver was damaged, the insurance will provide for medical expenses, sometimes lost wages or any other damages disregarding the fact of who was the cause of an accident.

Several US States require a driver to own a PIP coverage in any event. Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania and Utah have some kind of legal requirement for PIP extension. Several states allow the ability of refusing the insurance extension to the drivers (Washington, Texas).

How Does PIP Work?

Every state has different regulation on PIP extension, however they can all be generalized under following procedure. An injured driver makes a claim for coverage from his or her insurance company. The company covers all expenses related to the accident, however if such expenses are above the insurance limit (depending on a State it can vary) the injured driver has to request the coverage from the person at fault of the accident. The limit covers costs regardless the fault, but above that the fault has to be determined.

This procedure radically shortens the time for an injured person to receive coverage of costs and does not need to go to Court and seek for damages from a person at fault. That way the driver is insured from any accident and is sure to be covered at a minimum rate at least in the event of an injury.

PIP in Florida

As mentioned above, Florida is among those States requiring the PIP auto insurance. The minimum limit that is demanded by the law is USD 10 000 in medical coverages and losses. Any vehicle owner registered in Florida needs to purchase a PIP coverage. Studies and statistics suggest that the number of accidents and injured drivers have remained unchanged during the past years; however the PIP claims amount has radically risen.

According to Florida law, the PIP extension covers 80 percent of your medical bills and as for lost wages they are covered within the 60% limit, provided that both coverages do not exceed USD 10 000. The PIP issues coverage for any vehicle-related injury or accident, even in the event when you are injured while riding a bike or being hit when walking.

SR 22 and FR-44 in Florida

The SR-22 and FR-44 are not the insurance policies, but the certificates proving that you have relevant coverage from your insurance company. In Florida, both these certificates are required and they are different from PIP extension. The Personal Injury Protection extension is an insurance required for all owners of motor four-wheeled vehicle, while SR 22 and FR-44 are required for those drivers that have been charged with some traffic violations. SR 22 is required for DUI violations, driving without insurance, reckless driving or some other violation resulting in a license suspension. With SR 22 the driver can reinstate the license. While FR-44 is required for DUI violations only.

The two certificates must attest the coverage minimums that have been established by the Florida Law. Both of them have the minimum requirements for personal injuries as well. SR 22 limits (minimum coverage amounts) are described by the following formula:10/20/10 which stands for coverages provided in case of an accident in the amount of USD 10 000 for the bodily injuries for one person; USD 20 000 for bodily injuries to two or more persons and USD 10 000 is the limit for property damage.

The FR-44 limits are much higher and in Florida are reflected in the formula of 100/300/50 which means USD 100 000 for bodily injury or death of one person, USD 300 000 for death or bodily injury of two or more persons and USD 50 000 for property damage. These limits are the highest prescribed in the United States.