You may already know that Florida is one of a handful of states with a no-fault car accident liability system. But you may not know what the no-fault system is or what you need to do to comply with it.
What you do after an accident can impact the success of your claim. That’s why working with an experienced car accident attorney is essential to determine your rights under Florida’s no-fault system. Here’s your complete guide to Florida’s no-fault insurance laws.
What is Florida’s no-fault insurance?
Florida’s no-fault insurance law is a system where all drivers buy insurance coverage. For minor car accidents, the insurance coverage applies whether or not you’re at fault for the crash.
Instead of sorting out who’s to blame for each accident, each person involved in the crash looks to their own PIP insurance coverage to recover for their own damages. The goal is to have cases resolved quickly, accident victims get the payments they need, and fewer cases end up in court.
History of Florida’s no-fault insurance laws
Florida’s history of no-fault insurance laws dates back to the early 1970s. In 1972, the state became the second in the nation to adopt a no-fault insurance plan. Legislation was passed in 1971 and became effective on January 1, 1972. This newly passed legislation would provide drivers with 100% of necessary medical expenses up to $5,000 and 85% of lost wages and funeral expenses not to exceed over $1,000.
In 1976, the legislator specified that injured persons could only sue if they suffered a severe injury. Throughout the rest of the ‘70s, ’80s, and ’90s, additional stipulations defined personal injury protection policies and guidelines in Florida.
At-fault insurance repealed in 2007
On October 1, 2007, the state repealed its at-fault-based auto laws. However, the no-fault system was reenacted in January 2008. These changes included:
- Adding a medical fee schedule for the benefits
- Limits on healthcare providers who could receive reimbursement for services
- Required insurance companies to reserve $5,000 of benefits for 30 days for physicians who were providing emergency care
Understanding Florida’s high insurance costs
Florida is ranked as the third most dangerous state to drive in, with cities like Tampa and Orlando seeing some of the highest rates. Higher accident rates mean higher automotive coverage costs for the state as a whole, but it’s not only driver habits that are pushing prices up.
Florida has a history of PIP insurance fraud, which in turn has helped fuel some of these high insurance rates. According to a recent report by Bankrate, Florida drivers pay an annual average of $3,183 for full coverage. This is 37% higher than the national average.
What is Florida’s minimum limit of 10/20/10?
As part of Florida’s auto insurance laws, the state adheres to a minimum limit of 10/20/10. All insured individuals receive:
- $10,000 of bodily injury coverage per person
- No more than $20,000 paid per accident
- $10,000 of property damage coverage per accident
Pros and cons of no-fault insurance
Understanding Florida’s no-fault insurance laws is better done with a simple pro and con list. Here’s a basic breakdown of why no-fault auto insurance laws help and hinder drivers.
Pros
- Quick payouts
- Medical coverage claims are processed faster
- Other crash-related expenses, such as child care and household services, may be covered
- Dealing with the aftermath of a car accident is less stressful
Cons
- Higher premiums
- You can only file a lawsuit if you’ve suffered permanent injury
- The driver who caused the accident typically faces fewer insurance penalties
Who is covered under personal injury protection?
Florida’s personal injury protection insurance policies will cover the driver, passengers in the vehicle, and any pedestrians involved in a car accident.
The PIP coverage of a policyholder can also protect their family members who reside in the same household if they are a passenger in a vehicle that was involved in a car accident.
What kind of coverage do I get under the no-fault system?
Under the no-fault system, every person must buy personal injury protection or PIP insurance. PIP insurance covers a range of damages for a victim in a crash. The insurance also covers victims in your household anytime they’re in a collision, even if you’re not in the vehicle.
Related: How MedPay/PIP Insurance Can Help You After a Car Accident.
Also, PIP insurance covers passengers in your vehicle if they don’t have their own insurance or coverage through a family member. PIP insurance applies without you having to prove the other side caused the accident. PIP insurance pays for qualified losses up to the policy limits.
What personal insurance protection (PIP) coverage do I need?
There are minimum amounts of PIP coverage that you have to buy. You must purchase an amount to cover bodily injury for one person, another amount for total bodily injury for everyone covered by the policy, and a third amount to cover property damages that occur in the accident. The current minimums are as follows:
- $10,000 for bodily injuries to any one person
- $20,000 for total bodily injuries for everyone covered under the policy
- $10,000 for property damage
What does personal injury protection pay?
Many people are surprised to learn that PIP insurance doesn’t pay for 100 percent of their losses in the event that they’re in a crash. Instead, PIP insurance pays a percentage of the loss depending on the category of the loss. PIP insurance pays for damages as follows:
- Medical bills: 80 percent
- Lost wages: 60 percent
- Replacement services: 100 percent
- Death benefit: $5,000
Replacement services are anything you need to hire out because of your injuries. For example, if you have to hire someone to mow the lawn when you used to take care of it yourself, the cost of hiring a lawn mowing service is a replacement service under Florida’s PIP benefits. You should receive 100 percent reimbursement for all replacement services and the respective percentages of other types of coverage up to your policy limit.
Don’t forget about the deductible
Remember that you’ve got an insurance deductible. Your losses must meet the deductible before the insurance policy kicks in. For example, if your deductible is $1,000, and you have $2,000 in medical bills, your insurance pays you 80 percent of $1,000 or $800. You must cover the remaining damages out of pocket.
Who needs no-fault insurance?
If you register a vehicle in the State of Florida, you must have no-fault insurance. If you don’t own a car, you don’t have to buy PIP insurance.
You may be covered under your family member’s PIP policy as long as you live with them. When you don’t own a vehicle, and no one in your family has PIP insurance, the vehicle driver’s PIP insurance can step in and cover your losses, and you don’t need to buy insurance.
Can I ever bring a claim outside of the no-fault system?
In serious car accidents, Florida’s no-fault system may not apply. Florida law 627.737(2) applies in cases of accidents with permanent injuries. To qualify, you must suffer a significant or permanent loss of an important bodily function, significant scarring, major disfigurement, or death.
If you have a qualifying injury, you may move outside of Florida’s no-fault system and bring a traditional lawsuit against the responsible party for the full value of your claim. Your attorney can help you understand if you qualify to bring this type of claim.
When would I bring a legal claim under no-fault?
There are times when you may need to bring a legal claim based on Florida’s no-fault laws. If the insurance company doesn’t agree to pay you what your claim is worth, you may need to bring the case to a courtroom.
The case would be against your own insurance company or against the insurance company that should be covering your PIP benefits. Under the no-fault system, the claim isn’t based on fault. Instead, it’s a claim based on the insurance company’s failure to honor the terms of the PIP policy.
What other kinds of coverage can I get?
In addition to basic PIP coverage, you can buy insurance that covers additional medical bills under a medical payment rider. The medical payment rider kicks in to cover additional medical bills up to your policy limit after your PIP insurance is exhausted.
There’s also optional coverage in case you’re in an accident that falls outside Florida’s no-fault system. There’s bodily injury coverage in case you’re at fault for an accident where someone else gets catastrophically hurt. There’s also uninsured or underinsured coverage in case the other side is at fault, but they don’t have bodily insurance coverage to compensate you. Both types of insurance keep you protected as you travel in Florida.
How can an attorney help?
Florida’s no-fault insurance scheme can be complicated and confusing when you’re in an accident. If you’re unsure how to recover after your Florida car accident, contact Jack Bernstein, Injury Attorneys, to discuss your options. Our legal team has the experience to help you successfully navigate the no-fault system and get the compensation you need.
Sources:
Background on: No-fault Auto Insurance. (2023).
Florida No-Fault Auto Insurance: A Historical Primer. (2013).
Petit, R. 2023. Car Insurance In Florida Costs Nearly Double National Average.
Sleight, M. 2023. Average Cost of Car Insurance In Florida in 2023.