PIP Benefits Are Exhausted: What Do I Do?

September 17, 2024 | Sagi Shaked | Blog

Personal injury protection (PIP) coverage will pay out for car accident injuries even if the accident was your fault. The problem is that most drivers purchase only the legal minimum or not much more than the minimum. So, what do you do if your losses exceed the limits of your PIP coverage?  

PIP Coverage Limits

Florida law requires all drivers with cars registered in the state to purchase at least $10,000 in PIP insurance. However, you can purchase coverage of up to $500,000 per person and $1,000,000 per accident. 

Remember that PIP pays for economic damages only, not non-economic damages (such as pain and suffering), and not punitive damages. If you purchase the policy, it will cover you, your relatives living in your household, someone operating the vehicle with your permission, passengers in your vehicle, and someone hit by your vehicle (a pedestrian or a bicyclist, for instance). PIP will pay only 80% of your medical expenses and only 60% of your lost earnings.

Other Options

If your losses exceed your coverage limits, you might consider the following options: 

Health Insurance

Once you exhaust your PIP insurance benefits, your health insurance might kick in to help with your medical bills. However, it will not cover lost earnings or non-economic damages. Remember that depending on the terms of your policy, you may bear liability for co-pays, deductibles, out-of-pocket expenses, etc.

Medical Payments (MedPay) Coverage

MedPay is optional. If you purchase it, however, it will kick in only after you exhaust your PIP benefits. As the name indicates, MedPay covers only your medical expenses.

File a Claim Against the At-Fault Driver or Their Employer

If you run out of insurance options, you can try suing the at-fault driver in their personal capacity.  The problem is that they might not have enough money to pay. If the driver was on duty at the time, you might explore the possibility of using the doctrine of respondeat superior to sue their employer. An employer can bear liability for the negligence of their employee if their employee was acting within the scope of their work duties at the time of the accident.

File a Third-Party Bodily Injury Liability Claim Against the At-Fault Driver

You might file a claim against the at-fault driver’s bodily injury liability insurance if they have any. If negotiations break down, you can go to court and demand both economic and non-economic damages. The problem here is that (shockingly) Florida does not require its drivers to purchase bodily injury liability insurance. If the driver lacks this insurance, you will have to sue them for their personal assets.

Use Uninsured/Underinsured Motorist (UM/UIM) Insurance

Uninsured/Underinsured Motorist (UM/UIM) is optional in Florida. If you carry any, it will come in handy if your expenses exceed your PIP coverage under the following circumstances:

• The at-fault driver was driving without insurance,
• The at-fault driver does not have enough insurance to cover your damages or
• You were the victim of a hit-and-run accident, and you cannot locate the at-fault driver.

UM/UIM insurance can apply even if your injuries do not qualify as ‘serious’ under Florida law.

Personal Injury Lawsuit

You can file a personal injury lawsuit against the at-fault driver if and only if your injuries involve:

• A significant and permanent loss of an important bodily function, 
• A permanent injury within a reasonable degree of medical probability or 
• A significant and permanent scarring or disfigurement.

If you die in an accident, the personal representative (executor) of your estate can file a wrongful death lawsuit against the at-fault driver. In Florida, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the accident (certain exceptions apply).

Seek Compensation for Property Damage

In Florida, property damage is not no-fault. You can sue the at-fault driver without having to rely on your own insurance. You will have to prove fault to win. There are also certain types of optional insurance you can purchase, such as collision insurance, that can help. You generally have four years to pursue a property damage claim instead of the two years you usually have for a personal injury claim.

Talk to a Miami Personal Injury Lawyer to Discuss Your Options

They don’t teach you the “deep pockets” theory of litigation in law school, but every personal injury lawyer knows it by heart. The idea is that when faced with a personal injury claim, look for a party with the financial resources to pay your claim. That probably means insurance resources, but it might mean the defendant’s personal resources. An experienced Miami car accident lawyer can help you seek full compensation for your losses.

Contact Our Car Accident Law Firm in Miami, FL

If you’ve been injured in an accident in Miami, FL and need legal help, contact our Miami car accident lawyers at Shaked Law Personal Injury Lawyers to schedule a free consultation.

Shaked Law Personal Injury Lawyers
20900 NE 30th Ave Suite 715
Aventura, FL 33180
(305) 937-0191