Florida’s “No-Fault” Car Insurance

Florida is one of the twelve states which require all licensed car owners to carry “no-fault” car insurance coverage.  Since 1972, Florida no-fault law has undergone a reform, but lately it obligates that all drivers should carry no-fault insurance, together with a personal injury protection (PIP) plan.

Most drivers have the notion that no-fault insurance covers all costs resulting from road accident, but there’s no truth on that.  A car driver who causes the accident remains liable for compensation to someone who suffers death or physical injury.

no-fault car insurance

Laws and regulations on Florida’s no-fault car insurance

Let’s look at some of the main components of Florida’s auto insurance laws. You will learn about the types of car insurance and the amounts involved.  You will understand better how Florida’s status, as a no-fault state, can affect passengers, drivers, and pedestrians when there is an accident.

Florida is one of the states offering “no-fault” car insurance state

After a road accident, Florida allows a “no-fault” insurance in terms of paying auto insurance claims. Compared to other states considered as no-fault states, drivers are required to carry auto insurance which pays for the PIP benefits. When the insured person meets an accident, the personal injury protection benefits pay for the medical costs and other non-medical costs with relevance to the accident.  Other non-medical costs related to accident come from loss of income and cost of hiring a person to perform household chores (otherwise known as “replacement benefits”). In terms of claims in auto insurance, Florida follows a no-fault car insurance state.

All drivers in Florida should carry the least PIP benefits in their insurance policies. When there’s a collision along the way, every individual involved in the accident turns his own policy to pay the expenses for the medical care and related losses.  Such benefits take effect irrespective of who is at fault in the crash.  On the other hand, for the “at-fault” insurance state (also known as “fault” or “tort liability” state), drivers can have the choice whether to file claims with their insurance provider, file claims from the other driver’s insurance company, or bring the other driver to the court. Taking the driver to the court will prove that the driver is the one at fault and must be accountable to settle for the accident costs.

Florida’s “Injury Threshold”

Drivers in Florida can just go outside Florida’s no-fault system then follow a claim if such driver incurred permanent injuries caused by the accident. Claim is acceptable if permanent disfigurement or injuries occur, or if there’s loss of body function or body part.

Bodily Injury Liability (BIL)

Not like other states, Florida doesn’t require the drivers to have benefits on bodily injury liability (BIL) which pays for the expenses of other injuries resulting from an accident. All car insurance policies should be bought from an insurance company which is licensed to perform business in the state of Florida. It’s obviously unlawful to drive without car insurance in Florida and the driver can have his license suspended. To reinstate the license, the driver must have the insurance to pay the fine, up to $500 for each violation.

Uninsured/underinsured motorist coverage in Florida

Drivers in Florida aren’t required to purchase uninsured/underinsured motorist (UIM) coverage. During the time insurance policy is bought, this type of coverage is offered by the car insurance company; however, the buyer can discard the UIM coverage provided they decline in writing.  This coverage pays for the extra PIP benefits if the insured person is hit by someone who is not insured or doesn’t have sufficient insurance to cover medical bills–including other damages.

To get additional information about Florida’s “no-fault” car insurance law and regualtions, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.

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