DeLand Accident Attorney - Deductibles
WATCH OUT FOR: DEDUCTIBLES
Any DeLand accident attorney will tell you to watch out for deductibles. Most PIP policies provide for $10,000.00 in benefits although more expensive coverage can be purchased for a price. Unfortunately, PIP insurance can be expensive. Because Florida law requires PIP insurance on any operational automobile, sometimes we have to resort to purchasing PIP insurance that contains a deductible. The standard deductible on PIP policies is $2,000. While this type of coverage may appear to be less expensive in the short run, in the long run if you are involved in an accident, the deductible will cost you a great deal of money. Remember that PIP only pays 80% of your medical bills. Until the $2,000 deductible has been satisfied, your PIP policy will pay no benefits for medical bills, lost wages, housekeeping or mileage. In actuality, the deductible is greater than $2,000. Until 80% of your total medical expenses equals $2,000, no benefits will be paid. In reality, if you choose a $2,000 deductible, your policy will not begin making payments until the total of your bills and lost wages exceed $2,500. This is because 80% x $2,500 = $2,000 -- the amount of the deductible.
You do not need to be a DeLand accident attorney to know that deductibles are very damaging in another way. Under Florida law, if you elect to purchase a deductible, you are responsible for that deductible amount. In other words, if you are injured by the negligence of someone else, because you purchased a deductible on your PIP policy, Florida law says that you are not entitled to recover the amount of the deductible from the negligent driver. This means that if you have a $2,000 deductible, you will automatically be responsible for $2,500 in medical bills. You will have no right to recover that from the person who caused your accident.
As you can see, deductibles are very deceptive. You should think very carefully before selecting a policy with a deductible. If a deductible is necessary, you should choose the smallest deductible that you can afford.
Feel free to contact Seitz & Tresher today to speak with a DeLand accident attorney.