Is Florida a No Fault State? (And What Does That Mean?)

Posted on: September 8, 2021

Do you have questions about auto insurance?

Let’s explore the question: Is Florida a no fault state…and what exactly does that mean?


Twelve states (and Puerto Rico) have adopted “no fault” laws pertaining to auto insurance. You may even have heard this phrase bounced around by your friends, neighbors, or even your insurance agent.

If you’re lucky enough to live in Florida, you may have asked yourself, “Is Florida a no fault state?” But this question begs another: What exactly IS a no fault state?

As personal injury attorneys with decades of experience, we have plenty of insight into handling the no fault system and we believe it’s something every Florida driver should know.


What Is No Fault Insurance?

“No fault” insurance does not mean that no one is to blame for the car accident.

Rather, each party is required to turn to their own insurance coverage for compensation for medical bills and lost wages, regardless of who was at fault.

Even though someone is usually “at fault” for an accident, compensation for these medical bills and lost wages does not depend on the person who is at fault.

What is no fault insurance?

These laws were designed so that those injured in an accident can receive compensation more quickly, without having to spend valuable time proving who was to blame.

The basis of our no fault system is that every licensed driver in Florida is required to carry at least $10,000 of Personal Injury Protection, or PIP. This coverage pays for 80% of your medical bills and 60% of lost wages up to your policy limit. The additional 20% and 40%—and anything beyond your limit—is your responsibility.


Exceptions to No Fault Insurance

No fault insurance does not mean that every reckless driver gets away scot-free.

Every no fault state has a threshold at which injured drivers can file a liability claim or a personal injury lawsuit against the other driver.

In some states, your losses must reach a certain dollar amount before you are entitled to bring a lawsuit. Other states have a “verbal threshold,” which means that the type and severity of your injuries determine whether you can step outside the no fault system.

In Florida, car accidents that result in permanent injury or significant and permanent scarring/disfigurement will result in a non-economic claim. However, even if the injury is not permanent, the at fault party is responsible for the 20% of medical expenses not paid by your PIP insurance as well as the 40% of lost wages not covered by PIP.


Can I Admit Fault?

From an early age, we are trained to apologize for hurting others. This response is so ingrained into us that some of us even apologize to inanimate objects!

While it’s important to own up to your faults and strive to be better, avoid admitting fault for a car accident at all costs.

Drivers arguing after a car accident

Multiple factors go into causing car accidents, from weather conditions to the state of the roads. By accepting the blame for a crash, you will be ignoring the many factors at play while also welcoming a host of other issues (such as lawsuits and increased insurance premiums).

Many times, people panic and think that they were at fault when a careful analysis of the facts demonstrates that another party caused the crash.

Car accident attorneys, on the other hand, are trained to evaluate all the factors that went into an accident.

Above all else, after an accident, we recommend (1) calling the police, (2) exchanging insurance information, and (3) following up with your insurance company.


No Fault Insurance Isn’t Always Enough

In some cases, PIP coverage may be all you need to recover from your accident injuries. But in other situations, the no fault system isn’t enough.

If you only carry the minimum amount of PIP, your insurance company will pay the providers up to $10,000 for medical bills. This sounds like plenty of money, but remember that they will not reimburse you for every single cent.

PIP will only cover 80% of your medical bills and 60% of your lost wages. Even if your total losses were $8,000—under the coverage limit—you will be responsible for 20% of those medical bills while only collecting 60% of your paycheck.


How Personal Injury Lawyers Can Help

If you are permanently or seriously injured in a car accident, $10,000 may only be a drop in the bucket toward relieving your financial burden.

It is always a good idea to consult with a personal injury attorney after a car accident. No single blog post can give you advice on what to do in your unique situation. But a licensed and experienced personal injury attorney can review the details of your case and guide you toward a solution that works best for you.

An attorney may be able to help you collect the funds you need to cover all of your bills so you can focus on recovery (rather than worrying about how you’re going to pay for it).

The personal injury attorneys at Beers & Gordon have more than 70 years’ experience working for both insurance companies and injured victims. This background has given us valuable insight into how insurance companies work and thus, how we can fight for you!

Call today to schedule your free consultation.


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