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If you sustained a personal injury in a car wreck in Florida that was not your fault, you might wonder why your insurance is paying the medical bills. The answer is twofold: PIP and subrogation.
PIP (“personal injury protection”) is “no-fault” automobile liability insurance coverage. PIP covers medical expenses regardless of whose fault the crash was. In Florida, insurance laws require vehicle owners to have at least $10,000.00 in PIP coverage. PIP covers 80% of your medical bills and 60% of lost wages up to $10,000.00. The at-fault driver does not have to repay your insurance company for any PIP benefits.
You are responsible for the balance of your medical bills beyond the 80% PIP covers. If you have health insurance, it may pay the 20% of your medical bills not covered by PIP. Depending on what type of health coverage you have, it may pay 100% of your medical bills that exceed your PIP. Regardless, your personal injury attorney should seek to hold the at-fault driver’s insurance company responsible for medical bills. Because you are not entitled to a double recovery of insurance for past medical bills, a legal concept called “subrogation” comes into play.
Subrogation is a legal right that allows one party to get reimbursed when it makes a payment another party owes. Subrogation laws require that the claim the at-fault driver’s insurance company pays reimburse your health insurance company for your medical bills. Many times when cases are settled, clients wonder why the settlement funds are used to reimburse their health insurance company. The subrogation laws that prevent double recovery of past medical bills is the reason.
If you or a loved one has been in an accident, don’t hesitate, contact a Pensacola personal injury attorney that fights for you. Call Stevenson Klotz today and schedule a free consultation. (850) 444-0000.