Personal Injury Protection (PIP) for Auto Insurance

Florida is one of ten states that have personal injury protection (no fault) auto insurance. The intention was to provide injured drivers up to $10,000 in immediate medical coverage in lieu of establishing fault through the court system. The goal was to reduce payment delay for injured drivers, as well as limit the utilization of the court system. In Florida, PIP coverage is required to be purchased by all owners of motor vehicles registered in this state. PIP coverage makes the individual responsible for their own injuries in an accident regardless of fault.

In recent years, the number of drivers and auto accidents has remained relatively constant, but the amount of PIP claims, and PIP payments has skyrocketed. The National Insurance Crime Bureau lists Florida as having several cities reporting the highest amount of “questionable claims” nationally. While PIP premium represents roughly two percent of Florida’s collected insurance premium, this issue accounts for nearly 50 percent of fraud referrals.

In 2012, the State of Florida passed HB 119 – Personal Injury Protection (PIP) for Auto Insurance Fraud to address this issue by reducing PIP fraud, and passing these savings to consumers,

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