No fault insurance has its advantages and disadvantages, the goal was to lower premuims for drivers and to avoid costly litigation. Florida no-fault insurance is personal injury protection (PIP) insurance.Florida no-fault PIP insurance covers the medical expenses of anyone injured in an accident, regardless of who is at fault in the collision. Just because your state requires no-fault insurance, does not mean you can drive without auto insurance. Not only is it required by state law to carry auto insurance, but no-fault insurance only really protects you if you were not at fault.
If you are living in a state that requires no-fault insurance, you may have noticed an increase in your premium over the years. This is due to insurance policy holders taking advantage of no-fault insurance to book additional medical treatments.
Years ago, anyone involved in even the most minor car accident had to sue the other driver to get just compensation for even the most minor injury. "No Fault" laws were enacted around the country to make it easier to resolve smaller cases without clogging court dockets. Florida is a "No Fault" State. This simply means that you go to your own auto insurance to pay your medical bills up to a preset amount. This insurance is referred to as PIP or Personal Injury Protection coverage. This coverage is mandatory in Florida and covers 80% of medical expenses up to $10,000.00. It pays your medical bills before your own medical insurance coverage has to pay and is therefore considered "primary" coverage. PIP also pays 60% of your lost wages. You might want to consider putting your claim for lost wages in before your PIP gets exhausted by medical expenses. PIP follows the person, other car insurance coverage follows the car. As long as you come into contact with another motor vehicle, whether on a bicycle, as a pedestrian, in your auto or someone else's vehicle, you are covered under your PIP and must present a claim to your PIP carrier. If you do not own a motor vehicle but reside with a relative who does, you are covered under their policy.
No-fault insurance is a system in which auto insurance pays benefits the insured driver in case of an accident. The insurance compensates the insured driver for monetary losses, no matter who was at fault. This is contrary to systems in which the at-fault driver’s insurance company must pay the bulk of the compensation after an investigation and determination of fault by the insurance companies or the courts.