Florida is a no-fault state. Therefore, it follows a “No-Fault” law. However, many people aren’t aware of the ins and outs of the No-Fault law. It is important that you completely understand this process as it is a key step when it comes to purchasing Florida auto insurance.
What is No-Fault Insurance?
No-fault insurance in Florida requires all drivers to purchase auto insurance that includes personal injury protection and property damage liability benefits. Personal Injury Protection (PIP) will be able to pay (the insured) medical bills, no matter who is at fault for an auto accident. This will only cover up to the amount stated in your policy, while the minimum coverage limit for this is $10,000.
Here is an example of how PIP works. Let’s say that you choose the minimum coverage of $10,000. Expect Personal Injury Protection to pay:
80% of your medical bills
60% towards lost wages, due to not being able to work
100% of replacement costs
Personal Injury Protection also should provide you with a $5,000 in the case of a death. This would be put into action if a driver dies due to an automobile accident. PIP claims MUST be made within 14 days of an accident.
PIP also covers your children, other members in your household, and passengers who do not have any PIP insurance (as long as they aren’t a vehicle owner). If you are a passenger in someone else’s vehicle and are covered with your own PIP, you will be covered as well. In addition, anyone that is riding in your car that has proper PIP protection will receive coverage under their own PIP for any injuries sustained.
Where does No-Fault Insurance fit into my auto insurance policy?
Personal Injury Protection is added to auto insurance policies in Florida. It will kick in and pay the insured persons after an accident has occurred, no matter who caused the accident. You are also required to purchase Property Damage Liability (PDL) […]