In Florida, the Personal Injury Protection (PIP) insurance coverage typically pays up to 80% of the medical expenses related to an accident, minus the deductible. Given a $1,000 deductible, the insured in this scenario has $15,000 in medical bills.
First, the deductible of $1,000 is subtracted from the $15,000 total in medical expenses. This leaves the insured with $14,000 in eligible medical expenses for PIP to cover.
PIP will then pay 80% of that amount, which can be calculated as follows:
0.80 x $14,000 = $11,200.
However, it’s important to recognize that there are limits to how much PIP insurance will pay per accident, often capped at $10,000 unless the injuries are deemed serious as per Florida's regulations. In this case, the insured will receive $10,000 as the amount covered by PIP is limited to that cap.
Thus, the insured would pay $1,000 out-of-pocket for the deductible, and PIP would provide coverage for the remaining eligible medical expenses up to the maximum payment limit. Therefore, the insured will indeed be responsible for the deductible plus the PIP limit,