Most states have laws that require drivers to have a minimum amount of auto insurance coverage to legally drive in the state which often includes bodily injury liability coverage. As a no-fault state, however, Florida only requires property damage liability (PDL) insurance, and allows the required minimums for personal injury protection (PIP) to cover injuries.
Since the required minimums for PIP are quite low in the state, out-of-pocket expenses can be very high in an accident if the insured has not purchased additional coverage. Although the required PDL will go toward property damage to either party regardless of who caused the accident, the minimums will likely not cover the cost of fixing a high-value car.
For residents of Brevard County and throughout the Sunshine State, it may be necessary to file a compensation claim against the negligent party if the expenses for treatment of injuries and other damages exceeds the amount that PIP covers in an accident caused by an at-fault driver.
What is no-fault insurance?
No-fault states such as Florida have laws that mandate auto insurance coverage for all drivers that is available to pay for damages that result in an accident, regardless of which driver cause the accident. No-fault insurance, also called PIP, will pay for medical expenses to either party, and many states allow a portion of these benefits for lost income, funeral expenses and survivor’s loss.
PIP covers the medical expenses of the policyholder regardless of fault. Mandatory PDL, however, covers damage to the other driver. In at-fault insurance systems, bodily liability insurance is the main component of liability coverage but is not mandatory. While no-fault insurance laws create a system that lowers the number of uninsured drivers on the road, the limits to PIP mean that it usually will not cover all loss, and most no-fault states bar further recovery through the court system.
How does PIP work in Florida?
All drivers registered in Florida must have $10,000 in PIP and $10,000 in PDL, and only insurance companies licensed by the state may issue proof of coverage unless there is a self-insurance certificate. PIP will cover 80% of medical expenses to those injured in the accident who are covered, regardless of fault.
Because Florida provides for such minimal coverage, unlike other no-fault states it has provisions that allow the injured party to pursue a negligence claim if the other driver is at fault and the damages resulting from the accident exceed coverage.