What does it mean when people say Florida is a “no fault” auto insurance state?
Florida is different than most states in the USA when it comes to car insurance. There are 2 compulsory types of insurances that you have to get: one is of minimum $10,000 and is called Personal Injury Protection (PIP) and the other is also of minimum $10,000 and is called No-Fault Property Damage Liability (PDL), covering surgical, medical, debility and burial benefits, irrespective of whose fault it was.
What the Florida No-Fault Car Insurance Does for You?
According to the no-fault insurance, if you, as a driver, get harmed in an accident, 80 % of the medical expenditure for the injuries you had and 60% of the earnings you lost within the limits of the coverage and any deductibles, irrespective of who caused the accident, will be granted to you automatically by the company that insured you.
If you get killed in a car crash, the no-fault insurance pays to your closest family members the income you would have earned while working, but the amount is subject to a monthly limit and only paid for a certain period of time. It does not matter where in the USA the accident occurs, the policy will offer you these benefits as long as the vehicle involved in the crash is insured.
The no-fault coverage includes your family members who do not own their own policy. The Personal Injury Protection benefits can be granted by your policy even when your relatives are just passengers in somebody else’s car or simple pedestrians.
The no-fault will even pay up to a specified amount for damages created by your car to someone else’s property, such as: road signs, trees, even vehicles owned by other people, only if they were parked according to regulations.
Most people believe that, if they meet the requirements stated by Florida’s law, they have full coverage of all expenditure incurred in a traffic accident. That is very untrue, because the statutory law alone covers only a minimum, and, in case of an automobile accident, you will also require a bodily injury coverage, collision coverage and uninsured motorist coverage if you wish to spend as little amount of money from your own pocket as possible.
Limits to the No-Fault Insurance
The No-fault insurance does have its limits that every driver should be aware of. Generally speaking, the no-fault insurance will not pay for:
- Repair needed for your vehicle involved in the accident, regardless of out of whose fault the accident occurred;
- Repairs for another person’s automobile after a car crash, no matter whose fault it was, unless the vehicle was parked legally and you damaged it;
- The costs with replacing your vehicle in case it of it being stolen.
Even though Florida is one of the handful of states where the no fault auto insurance law was implemented, its main role was to keep the monthly premium rates low, offering fast disbursements for the drivers who are guilty of car accidents, while costly law suits are avoided due to its limited liability policy.