What You Need to Know About No-Fault Insurance

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Florida is a no-fault insurance state and it’s important to understand what this means. In the most broad sense, no-fault insurance is an insurance contract under which those that are insured are compensated for any losses by their own insurance company, whether the fault is theirs or not. When it comes to car insurance, it’s a bit more specific. Not only are policyholders reimbursed by their insurance company without having to prove fault, but they also lose some ability to seek recovery through the civil-justice system when losses are caused by a different party.

Florida is one of the few states that requires no-fault insurance that serves as a form of personal injury protection (PIP) insurance. It covers the driver, passengers and pedestrians regardless of if their negligence had a role in the cause of the accident. It can be a bit complex because its application varies depending on the situation. Every owner of a vehicle must carry no-fault insurance, so it may not necessarily be the driver’s coverage that is used after an accident. If you were driving your sisters car and got injured, it would be her insurance that covered your injuries unless you own a car, in which case your insurance would provide coverage. Florida’s insurance will generally follow the driver, not the car, unless the driver doesn’t have their own PIP insurance (children for example), in which case it would fall under the policy of the driver of the car they were riding in.

A few facts about Florida no-fault insurance:

  1. Any person who has a vehicle in Florida for more than 90 days (does not have to be consecutive) during a 365-day period must purchase PIP.
  2. It doesn’t not apply to property damage, but you are required to carry property damage liability insurance
  3. The Florida Motor Vehicle No-Fault Law, requires all owner/registrants of a motor vehicle with four wheels or more to carry a minimum of $10,000 of Personal Injury Protection (PIP) and $10,000 of property damage liability (PDL) if you own a motor vehicle in Florida.
  4. It only protects people who are injured in auto accidents and covers damages such as medical bills and lost wages.
  5. PIP will also cover your child, members of your household, and certain passengers who lack PIP Insurance as long as they do not own a vehicle
  6. People riding in your vehicle who carry PIP will receive coverage under their own PIP for their injuries, and certain licensed drivers who drive your vehicle with your permission
  7. PIP coverage protects you while in someone else’s vehicle, as a pedestrian, or bicyclist if you suffer an injury in a crash involving a motor vehicle

No-fault insurance has both benefits and disadvantages depending on the situation, but whatever the case, it’s important you understand your coverage. Many states have adopted no fault auto insurance in order to speed up the claims process and avoid litigation for petty claims, which is a definite advantage, but you do lose some ability to sue if you’re injured as a result of another drivers negligence. No-fault insurance limits the damages an injured
party can claim against the person who caused an auto accident, and those who carry no-fault insurance don’t have to sue another insurance company to take care of damages and medical bills.

If you have any questions or want to discuss no-fault insurance, give us a call today at 305-648-7070.