What is a PIP deductible and why do I have to pay it?
Florida is a no-fault state and PIP is the insurance that you pay for that protects you for certain medical needs and certain lost wages needs. The minimum PIP policy is $10,000 but there is a catch. Just like property damage coverage, or a homeowners policy, your PIP can have a deductible. That means you have to reach the PIP deductible out of your own pocket before the coverage commences. By statute up to a $2,000 deductible is allowed by the insurance companies for sale to consumers. Although this is the largest deductible allowed, it is not required. Consumers can go to an insurance company to buy insurance elect to not have a deductible or have a deductible smaller than the $2,000 maximum deductible allowed by law. The time to decide what is an appropriate PIP deductible is before an accident. Once an accident occurs, it is too late.
