Why do I have to pay back my auto insurance carrier when the negligent driver’s insurance company paid me money? This is an unfortunate situation and a question often asked by our clients. In Florida, you are required to purchase personal injury protection (PIP) coverage. This is commonly referred to as "No-Fault" coverage, as it will give you a degree of protection whether or not you caused the accident. The minimum amount of PIP coverage in Florida is $10,000.
People sometimes also purchase medical payments coverage (MPC) in addition to their PIP coverage. This is helpful because PIP only pays 80% of the medical care and there is often a deductible so the injured person is left with outstanding bills. Luckily MPC will pay the amount that PIP does not. However, what people don't know is that when you are injured by another due to their negligence and their insurance company compensates you financially for your medical care, you have to pay back your own insurance company for the medical payments coverage (MPC).
As you can see, it is not always a benefit to have purchased MPC if you have to repay your insurance company from your settlement. Not every insurance company requires repayment. You should speak with your agent and make sure that your insurance company does not require the medical payments coverage be repaid in the event of a settlement.
If you or someone you care about has been injured in a motor vehicle, truck, motorcycle, or car crash, please call us today. We will provide a complete and thorough investigation into your case. Call and Speak with a Personal Injury Lawyer TODAY.