All You Need to Know About No-Fault Laws in Florida

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  • All You Need to Know About No-Fault Laws in Florida

In Florida, no-fault insurance is mandatory. No-fault insurance in Florida means every driver is legally required to carry a minimum amount of PIP, or personal injury protection, on their auto insurance policy. 

When driving in Florida, it’s essential to know the laws and ensure you abide by them, including the Florida no-fault statute. Keep reading to find out all you need to know about staying safe on Florida’s roads and the intricacies of no-fault insurance in Florida.

Is Florida a No-Fault State?

Florida is a no-fault state, which requires residents to carry a minimum amount of PIP insurance on their auto insurance policies. The minimum amount of required PIP insurance in Florida is $10,000 worth of coverage. This coverage protects the policyholder should they get injured in an accident and accrue medical expenses. 

No-fault laws were designed to make it easier for victims of car accidents to seek medical treatment. In tort liability states, otherwise known as at-fault states, once one party involved in an accident is deemed at fault, the victim or victims of that accident typically seek recompensation for their medical bills with the at-fault party’s car insurance. In no-fault states like Florida, victims of car accidents file a claim with their own auto insurance policy to invoke their PIP coverage and any other additional coverages they may have to cover their medical expenses.

The system tort liability states use for compensating victims of accidents is often time-consuming and requires many steps, so no-fault laws were designed to streamline the victim’s process of receiving funds. While it’s a good idea, in theory, no fault-laws do have their blind spots.

What Does It Mean to Be a No-Fault State?

While no-fault laws vary from state to state, all no-fault states have one thing in common: drivers are responsible for their own medical expenses in the event of an accident. They must file a claim with their own auto insurance to receive reimbursement or compensation for these expenses.

States with no-fault laws sign these laws into place for varying reasons, but primarily because of the population and the number of uninsured drivers in the state. Florida is a no-fault state because it has many cities with dense populations and many uninsured drivers.

When states have dense populations, there are many drivers on the roads. With a high number of drivers on the roads, there’s a higher likelihood of accidents, meaning more people file claims with their auto insurance companies. This means that insurers are taking a high risk by insuring drivers in these states because their policyholders will likely file a claim and require compensation for repairs or medical expenses.

Over 20% of drivers on Florida’s roads don’t have insurance, which means there’s a one in five chance of an insured driver being the victim of an accident caused by someone who has no way of paying for the damage they’ve caused. In a tort liability state, drivers who cause accidents must pay for the damage they’ve caused. 

When an at-fault driver can’t pay for the damage they’ve caused, it clogs up court systems because drivers who are seriously injured in accidents with uninsured drivers may choose to sue the uninsured. Therefore, no-fault laws were born.

While all no-fault states have differing stipulations in their laws, Florida’s no-fault insurance requires all drivers to carry a minimum of $10,000 of PIP coverage on their auto insurance policies. This means drivers who are injured in an accident, regardless of who’s at fault, can begin to receive payment for their medical expenses almost immediately after the accident, so long as they file a claim immediately following the accident.

Why Do I Need No-Fault Insurance in Florida?

Since Florida is a no-fault state, it’s required by law that all drivers have a minimum of $10,000 of PIP coverage, otherwise known as no-fault insurance. This allows policyholders to file a claim with their own insurance should they have medical expenses for serious injuries caused by an accident.

Failure to follow Florida’s no-fault car insurance laws may result in a hefty fine, license suspension, or jail time. Drivers who have previously caused an accident or have otherwise been involved in a serious car accident may face more severe consequences if they fail to follow Florida’s no-fault law.

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Florida No-Fault Law

Florida’s no-fault insurance law requires all drivers to have at least $10,000 of personal injury protection, or PIP, on their auto insurance policies. Like most laws, Florida’s no-fault law has some stipulations that make it unique from other states’ no-fault laws. The most notable rules are as follows:

  • Florida residents can’t have any more or less than $10,000 of PIP coverage
  • Florida PIP coverage will help the policyholder to pay for 80% of their medical expenses, up to the $10,000 limit
  • Florida PIP coverage will help the policyholder to pay for 60% of disability costs, including loss of wages, up to the $10,000 limit
  • Florida PIP coverage will pay up to $5,000 for funeral expenses
  • To receive your PIP payout from your claim, you must receive medical treatment within 14 days of the accident
  • To receive your PIP payout from your claim, your injuries must be serious, meaning they cause:
    • Permanent scarring
    • Permanent loss of a bodily function
    • Permanent injury
    • Death 
  • For any injuries that aren’t deemed serious, the claimant will receive up to $2,500 in compensation for medical expenses
  • Florida PIP coverage will cover any non-car-owning, uninsured passengers of your vehicle
  • Florida PIP coverage will cover any members of your household if they should be in an accident in your vehicle
  • Florida PIP coverage will cover the policyholder should they be injured by a car as a pedestrian or a bicyclist

If Florida is No-Fault, Who Pays for Car Damage?

In addition to Florida’s no-fault law requiring all drivers to carry personal injury protection on their auto insurance, the Florida no-fault law includes a property damage liability (PDL) requirement of $10,000 of coverage. PDL is tort liability coverage drivers must carry to cover the cost of vehicular repairs for the victim of a car accident, should the policyholder be deemed at fault in an accident.

Wait a minute, at fault? I thought Florida was a no-fault state.

In short, Florida is a no-fault state. However, when it comes to property damage, liability must be designated, which is a nice way of saying someone must be blamed for the accident. The victim typically makes PDL claims with the at-fault party’s insurance company in the event of an accident.

Car Insurance Quotes in Florida

Car insurance in Florida tends to be quite expensive because of its no-fault laws. If you want to lower your premiums, or you’re curious about switching your auto insurance carrier, we recommend getting and comparing several quotes online to see if you’re getting the best deal on your Florida no-fault insurance.

Here at Clovered, you can get a free quote using our online quoting tool. If you would prefer to chat with an agent about your no-fault insurance quote or if you have any further questions about Florida’s no-fault laws, call us at 833-255-4117 or email us at agent@clovered.com.

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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