What is “PIP” and MedPay?

If you live in a “no-fault” state, such as Florida, you are required to purchase Personal Injury Protection (PIP) and have the option to purchase Medical Payments (MedPay). PIP and MedPay cover the medical bills of you and the passengers in your car, in the event of an accident.

PIP will provide coverage regardless of whether you are in your own personal vehicle or someone else’s. PIP is unique in that is “follows” the driver rather than the vehicle. PIP pays $10,000 total, and is the first form of payment, followed by MedPay. The only exception to when PIP may not be paid first, is when worker’s compensation may be involved.

PIP covers up to 80% of your medical bills and 60% of lost wages. Lost wages are defined as potential earnings the insured was unable to receive as a result of injury or disability.

The remaining 20% of your medical bills are covered by MedPay, health insurance or Medicare, and possibly the at fault driver’s bodily injury insurance coverage.