The Need-To-Know

All cars registered in the state of Florida are required to have $10,000 in Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance, respectively. This allows injured drivers to receive payment without first filing a lawsuit or waiting for the at-fault party's insurer to reimburse them. PIP covers 80% of your reasonable medical expenses up to the policy limit. PDL, by contrast, applies to property damage you cause to someone else's vehicle or property.


The main benefits of Florida's no-fault insurance system include the following:

  • Prompt payment for medical expenses after an accident
  • Fewer legal hurdles, since injured parties can often receive benefits without first filing a lawsuit
  • Coverage regardless of fault, meaning PIP benefits may still apply even if you caused the accident
  • Protection for passengers riding in your vehicle
  • Coverage in other situations, such as when you are a passenger in someone else's vehicle or are injured as a pedestrian in a crash

It is important to note that Florida's no-fault insurance system does not block lawsuits or claims that arise when injuries or damages exceed available coverage. In these cases, it is a good idea to consult with a personal injury lawyer or attorney as soon as possible.


Setting Up No-Fault Insurance

In order to have your car registered with the state, you must be able to provide proof of qualifying no-fault auto insurance. Most major auto insurance providers have options that satisfy the minimum $10,000 PIP and PDL requirements. Only once your insurance company forwards this information to the Florida Department of Highway Safety and Motor Vehicles (FDHSMV) can you register your car in your name.


While $10,000 is the minimum required coverage for PIP and PDL, higher coverage options are available. The best option for you depends on your existing health care plan and personal preferences. Some drivers with pre-existing health insurance plans choose to opt for the state's minimum PIP coverage with a higher deductible to lower their premiums, since most of their healthcare costs not covered by PIP will be paid by their health insurance company. Drivers without health insurance may want to consider higher coverage limits and/or MedPay, depending on their budget and needs.


How Florida's No-Fault Insurance Works

No-fault car insurance was first implemented in Florida in 1971 to reduce the burden that high volumes of insurance claims placed on local courts. Since then, 12+ U.S. states and territories have followed suit, taking advantage of the simplicity, efficiency, and flexibility that this kind of insurance offers.


Traditional car insurance policies require the injured party to file a claim against the at-fault driver before they can receive any kind of reimbursement. As such, the accident must be resolved legally before the injured parties can receive payment for their medical care. For many drivers, this means taking on debt or delaying treatment longer than they should. Oftentimes, the at-fault party has to forgo medical care altogether, as their needs are not covered under a traditional accident-insurance system.


The no-fault insurance system eliminates these issues. Reimbursement is not only quicker but also more accessible. As long as accident-related medical care begins within 14 days of the incident, PIP will cover 80% of your expenses and 60% of your lost income. In the case of death, PIP will pay out $5,000 to the deceased's beneficiary.


PIP coverage extends past the registered car, applying to the policyholder, the policyholder's household, and the policyholder's uninsured passengers. With PIP coverage, it does not matter whose car you are in when the accident occurs; you are covered. Likewise, if you are involved in an accident as a pedestrian or bicyclist, you can take advantage of your PIP benefits.


Despite these benefits, no-fault insurance is not a catch-all for all kinds of accident-related expenses. PIP only covers 80% of medical costs up to your plan's selected limit. If you go with the state minimum limit of $10,000, your maximum total coverage will be $10,000. There are also set deductibles, which must be paid out of pocket before your PIP coverage will kick in; these deductible amounts will depend on your chosen plan and premiums.


Can You Sue The At-Fault Driver In a No-Fault State?

Yes. Even if you live in a state with no-fault insurance, you can work with an injury lawyer to sue the at-fault driver under special circumstances. In order to submit a third-party claim or lawsuit against the at-fault driver, you must be able to prove that one of the following occurred as a direct result of the accident:


  • Significant and permanent loss of an important bodily function
  • Permanent injury within a reasonable degree of medical probability
  • Significant and permanent scarring or disfigurement
  • Death

If any of the above is proven, the injured party can sue for pain and suffering, lost wages, medical expenses, property damage, and other related out-of-pocket expenses. No-fault insurance is designed to limit the amount of lawsuits and speed up the bureaucratic process of reimbursement, not to prevent it altogether.


How Brehne Law Can Help

Whether you're trying to understand which no-fault insurance plan is right for you, push back against an unfair denial, or find out whether you qualify to sue or need legal protection against a suit, Brehne Law is here to help. Our Orlando personal injury lawyers specialize in personal injury and accident cases throughout Florida, bringing the experience and insight you need to move forward with confidence. Contact us to schedule a consultation today!


Frequently Asked Questions

What Is No Fault Insurance?

No-fault insurance generally means your own PIP coverage pays certain benefits after a covered crash, regardless of who caused the accident. This kind of insurance pays out quickly, regardless of who was responsible for the incident.

Is Florida a No-Fault State?

Yes. Florida requires all registered vehicles to have no-fault insurance coverage at all times.

Who Pays For Car Damage in a No-Fault State?

No-fault insurance generally applies to injury-related benefits, not vehicle repair costs. The insurance company of the at-fault driver must still pay for all car-damage related costs.

Who Pays For Medical Bills in a No-Fault State?

Personal Injury Protection plans pay for 80% of all medical expenses up to a set limit in a no-fault state. If you are injured in a car accident in a no-fault state, your own PIP will pay for your medical bills.