Why Is Florida A No-Fault State – Breaking Down PIP Insurance

by Jul 25, 2023Article

As of 2023, Florida is one of the 12 no-fault states in the country. Florida’s no-fault auto insurance system requires drivers to carry “personal injury protection” (PIP) as a way to expedite the recovery of lost wages and medical expenses after an auto accident, no matter who is found to be at fault. This article breaks down what it means to be a no-fault state, and how Florida’s no-fault system works when drivers get into an accident and are seeking compensation for their injuries. If you or somebody you love were injured in an auto accident, consult with an experienced auto accident attorney to determine your next steps.

How Florida’s No-Fault Insurance System Works

First, let’s quickly go over what a no-fault state means. A state with a no-fault auto insurance system like Florida requires drivers to carry insurance that covers their own lost wages and medical expenses if they get into an accident. Essentially, having their own insurance that covers their losses (no matter who is found to be at fault for the accident) is supposed to make it faster and easier for injured parties to get back on their feet after an accident without having to wait through a lengthy investigative process or deal with going to court. In a traditional tort system, on the other hand, only the at-fault driver is responsible for the other party’s damages.

What Is Personal Injury Protection (PIP)?

All drivers in Florida must carry a minimum of $10,000 coverage in PIP insurance. The limit of the policy sets the cap for how much the insurance company will pay for damages in the event an accident occurs. So if a driver with $10,000 of PIP insurance gets into an accident, their insurance company- not the other party’s- will pay up to $10,000 for their damages and medical expenses. If their injuries and lost wages total over $10,000, however, things get a little more complicated.

What Happens If Damages Total Over The PIP Limit?

If the damages incurred in an auto accident are relatively minor, the no-fault system can make recovering compensation a smooth process. However, if the cost is higher than the insurance limit, then who is at-fault for the accident matters, as the at-fault party or their insurer may be responsible for paying the rest of the victim’s damages. Since Florida doesn’t require drivers to carry bodily injury liability insurance, it’s essential to establish how much the other driver’s insurance limit is before negotiating a fair settlement with your attorney. You will probably need the assistance of an experienced Florida car accident attorney who can help you investigate the issue and gather evidence to build your claim for the compensation you deserve.

Contact Us Today

While Florida’s no-fault system expedites compensation for minor car accidents, in cases where injuries and damages are more severe, the insurance situation is more complicated. Insurance companies have teams of lawyers and adjusters on retainer working hard to protect their bottom line and pay you the least amount they can get away with, even if you deserve more. Call Rosenblum & Mayer to consult with an experienced Florida car accident lawyer today.