How Does Florida's No Fault Insurance Work?

If you live in Florida, you are familiar with the unique car insurance system that they have. Florida no fault insurance is much different than regular car insurance as it basically means that no one is at fault in an auto accident. To those that are planning on moving to Florida in the near future, this could be a very important topic for you to learn about. How exactly does this system work?

No Fault

This type of insurance policy is different in that no one is at fault for the accident. Instead of figuring out who made the mistake, the insurance companies just pay for the loss. Your insurance company will pay for your damage and the other person's insurance company will pay for their loss. It makes sorting out the facts a lot easier to deal with.

Less Litigation

One of the big advantages of the Florida no fault car insurance is that it prevents unnecessary litigation. While under extreme circumstances, there can still be lawsuits, much of this is eliminated. Just because someone ran into you on the freeway does not mean you can sue them or their insurance company. Your insurance company will pay for the damage and any necessary medical treatment.

Medical Treatment

Another advantage to this system is the medical coverage that it provides. The idea behind it is to immediately get the treatment that you need instead of fighting it out with someone else's insurance provider. After a wreck, you are given the treatment you need with no questions.

Part of the no fault insurance policy is called Personal Injury Protection or PIP. PIP coverage will pay 80% of all of the necessary medical bills including x-ray, dental, medical, and surgical. You pay 20% of the cost and they pay 80%. The 20% will still discourage you from driving recklessly, but the 80% is a big percentage of the total bill. On a $10,000 bill, you would only have to pay $2000 out of pocket.

Independent Medical Examinations

This part of the law is essential to making it work for the insurance companies. If you are in an accident, it is up to the discretion of the insurance company if they want to have you examined by an independent medical professional. They get to pick the doctor and the tests that they want ran and you have to oblige if you want coverage. This way, they can help prevent any medical fraud and keep their premiums as low as possible.

Getting No Fault Insurance

Obtaining no fault insurance in Florida is just like getting car insurance from any other state. You simply go to a Florida no fault insurance company and ask to apply. They will give you an application for Florida no fault benefits and then you give them the information that they require. They may want to inspect your vehicle depending on the carrier and then they will decide whether to insure you or not. From there, you just pay your premiums and you are covered.


Does Florida's no fault insurance apply to motorcycles?

Florida no fault insurance is a system that involves each insurance company paying for the damage incurred by its customer regardless of who is at fault. This system does not necessarily apply to motorcycles. Motorcyclists are not required to purchase insurance unless they are under the age of 21 and do not wear a helmet. This does not necessarily mean that these individuals should not purchase insurance. Most experts recommend that motorcyclists in Florida purchase uninsured motorist insurance and property damage liability coverage. This way, the motorcyclist will be covered if he or she is in an accident and causes damage to another individual's property.

How does Florida's no fault insurance affect tourists?

The Florida no fault insurance law does not apply to residents alone. Since it is a popular tourist destination, many out-of-state individuals could get involved in accidents while they are visiting. According to the rules, individuals who do not live in Florida for more than 90 days out of the year are not required to purchase Personal Injury Protection (PIP) insurance, which is required under Florida laws. If a tourist is involved in an accident, the same no fault insurance rules will apply, and both insurance companies will pay.

What is the financial limit for no fault car insurance in Florida?

Florida no fault insurance is a type of coverage designed to have two insurance companies bear the financial burden after an automotive crash. With this type of coverage, there are limits as to how much an insurance company will have to pay in the event of an accident. When it comes to paying for standard medical bills, the insurance company will have to pay $10,000 to the injured individual. When there is property damage involved, the insurance company also has to pay $10,000 to repair the damaged property. (These figures are current as of August 2010.) This system seeks to limit the amount of money that is paid out by insurance companies each year.

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