The BasicsIn the state of Florida, there is a mandatory, no-fault Personal Injury Protection (PIP) insurance program that is a part of your car insurance. PIP seeks to compensate insureds up to the limits of their policy, regardless of whether or not they are legally liable for the accident and the damages incurred therein. The purpose of the PIP program is to keep insurance costs low by making litigation over small car accidents unnecessary. As an owner of an automobile in Florida, you are required by the Florida Motor Vehicle No-Fault Law to carry a minimum of $10,000 in PIP and $10,000 of property damage liability (PDL). You must maintain both types of insurance throughout the time you are licensed and your car is registered in Florida, even if you live or use your car out-of-state for part of that period. Florida PIP includes partial compensation for economic damages:
- Medical benefits, payable at 80% of the amount incurred by the accident;
- Disability benefits, payable at 60% of any lost wages, lost gross income, and loss of earning capacity; and
- Death benefits, up to $5,000.