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🚗 Types of Insurance After a Crash

What each type of auto insurance covers—and how it affects your injury claim.

🟧 Personal Injury Protection (“PIP”)

Often called no-fault insurance, PIP covers:

  • 80% of medical expenses

  • 60% of lost wages

  • Up to a combined total of $10,000

  • Regardless of who caused the crash

⚠️ Important: You must be evaluated by a doctor within 14 days of the crash, or you lose access to PIP.

How PIP Payments Work

 

Think of PIP like a good health insurance plan—providers can’t bill you the full sticker price.

They’re limited to 200% of the Medicare rate.

 

Example:

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You get a $10,000 ER bill, but Medicare’s allowed rate is $2,000.

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  • ER must write off $8,000

  • PIP pays 80% of $2,000 = $1,600

  • You owe $400 (which can be submitted to your health insurer, if applicable)

🟥 Bodily Injury Coverage (“BI”)

This is the at-fault driver’s insurance. If they caused the crash, BI pays for your damages:

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  • Medical bills

  • Lost wages

  • Pain and suffering (if permanently injured)

  • Loss of enjoyment of life

  • Mental anguish

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One of the first things we do after a crash is find out whether the at-fault driver had BI—and how much. Your recovery is typically capped at their policy limits.

🟦 Uninsured / Underinsured Motorist Coverage (“UM”)

UM coverage protects you when:

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  • The at-fault driver has no insurance, or

  • They don’t have enough insurance to cover your injuries.​

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UM pays for the same types of damages as BI:

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  • Medical expenses

  • Lost income

  • Pain and suffering

 

Do You Have UM?

 

Florida insurance companies must offer it—but drivers can sign a waiver to reject it. We check:

 

  • Your policy

  • The vehicle owner’s policy

  • Sometimes a resident relative’s policy​

 

There are often multiple layers of UM coverage we can pursue.

🟩 Property Damage Coverage

This covers the damage to your vehicle. Simple in theory, but the key question is:

 

Do I use my own insurance or the at-fault driver’s?

 

The Answer: It Depends.

 

If the other driver is clearly at fault, you can usually go through their insurance.

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But sometimes it’s quicker and easier to go through your own policy—especially if:

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  • Their insurer is dragging their feet, or

  • You need your car fixed right away

 

If you use your collision coverage, your insurer will:

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  • Pay for repairs or total loss

  • Go after the at-fault insurer to reimburse the cost

  • Try to get your deductible refunded

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🔧 How Vehicle Value Is Calculated

 

Insurance companies control the valuation process.

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  • If your vehicle is totaled: They owe you the actual cash value (what it was worth the day before, including depreciation)

  • If your vehicle is repaired: You may be entitled to a Diminished Value (DOV) claim.

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📉 What Is a Diminished Value Claim?

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Even after repairs, your car’s resale value drops because it now has a crash on record.

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A DOV claim seeks payment for:

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The difference between your car’s value before the crash vs. after it was repaired.

 

This is a separate claim, typically made against the at-fault driver’s insurer, and may require documentation or a professional valuation.

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