Your PIP insurance premiums should not increase after a car accident, nor should your policy be canceled. You do have protection as a consumer under Florida Statute § 626.9541, which prohibits insurance companies from raising rates or canceling coverage without a legally valid reason. If an insurance company violates this mandate, it may be subject to legal repercussions and fines.
Since PIP insurance is mandatory to have in Florida, you have every right to benefit from the coverage for which you have been paying.
File with PIP Insurance First, Then Pursue Additional Damages
In Florida, if you are injured in a car accident, you must first file a claim under your PIP insurance provider before pursuing losses in a liability claim or lawsuit. Under Florida Statute § 627.736, to be covered under your PIP insurance plan, you must receive medical attention within 14 days of the accident. Failure to comply with this timeline may jeopardize your ability to seek compensation under this coverage.
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How PIP Works
Following an accident in which you sustained injuries, you can use your PIP insurance to recover costs for medical bills and lost wages. PIP insurance will pay a maximum of $10,000 for immediate medical coverage, according to the Florida Office of Insurance Regulation.
PIP insurance only covers:
- Medical costs, including imaging scans, surgery, and other relevant expenses
- Follow up services from a licensed chiropractic physician or dentist
PIP insures for up to 80% of medical costs and up to 60% of lost wages. If you are seriously injured by the accident, and your bills exceed this cap, you can then turn to either your own health care insurance or the at-fault driver’s insurance to pursue compensation for your losses.
It’s important to note that PIP insurance does not cover loss, such as property, emotional trauma, and some medical therapies and treatments. Anything beyond its limits may be redeemed through the at-fault driver’s insurance.
Insurance Companies Must Act in Good Faith
If your insurance rates increase or your policy is canceled after enacting your right to use your PIP insurance after an accident, you may have the basis for a bad faith insurance practices claim.
You have the right to:
- Request that your insurance company provides you with reasons for the changes to your policy
- Contact the Florida Department of Insurance Regulation if the insurance company fails to adequately answer your request
- File a complaint with the Florida Department of Financial Services
- Consult with a lawyer for advice
Although insurance companies can legally increase rates and cancel policies, they must provide a valid reason for doing so. You do not have to simply accept their decision.
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The Law Offices of Anidjar & Levine Protect Clients
If your PIP insurance premiums increase after an accident, or your insurance company drops you as a client, you have the right to know why. Florida has protections in place that are designed to keep these companies from unfairly exploiting policyholders. Whether you are just beginning to file a PIP claim or have been treated unjustly by your insurance company, we can help. At the Law Offices of Anidjar & Levine, we can guide you through this process. To learn more about the services we provide, call us today at 1-800-747-3733.
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