Rob has PIP with a $1000 deductible and $5000 in medical bills; how much will his PIP pay?

In this scenario, Rob has Personal Injury Protection (PIP) insurance, which covers medical expenses after an accident. However, PIP policies typically have a deductible that must be met before the benefits kick in.

Rob's deductible is $1000. Given his total medical bills amount to $5000, the deductible will reduce the amount that PIP will cover. To calculate the payout from PIP, you subtract the deductible from the total medical bills. This is done as follows:

Total medical bills: $5000

Minus: deductible: $1000

Amount covered by PIP: $5000 - $1000 = $4000

However, PIP is usually subject to limited coverage amounts depending on the total expenses incurred. Most PIP policies cover 80% of medical expenses after the deductible is applied, up to a maximum limit. Assuming the cap applies under Florida law, you would multiply the remaining expenses by 80%.

In this context, after subtracting the deductible, Rob would have $4000 in covered medical expenses. Therefore, multiplying that amount by 0.8 gives:

$4000 x 0.8 = $3200

Choosing $3200 provides the correct understanding of how much P