Florida No Fault Auto Insurance

Florida no fault insurance is a specific form of car insurance that pays claims regardless of fault. Only twelve states employ the no fault system, and each one requires varying limits and regulations for filing additional claims. If your state uses a no fault system, it is vital that you discuss the specific conditions that take effect in the event of an accident. Protect yourself and your property and do not assume that the minimum liability coverage is enough.

The minimum amount of insurance required by the state of Florida is $10,000 worth of liability coverage. This is required for all Florida residents who live in the state for more than 90 days a year. Liability insurance pays for both medical and property damage regardless of fault. Of course, each insurance policy has a deductible amount, which the driver must pay before the insurance carrier pays for any claim.

Uninsured motorist protection

No fault states have certain restrictions regarding taking legal action after an accident. However, in Florida, if a crash is server enough such as one that causes severe bodily injury or significant damage, drivers can take legal action. Sadly, almost 50% of the drivers on the road in Florida are under-insured or uninsured. To prevent a legal case where the chances of financial recovery from one of these drivers are extremely low, it is best to carry uninsured motorist protection. This type of protection pays medical and damage claims if the other driver does not carry sufficient insurance.

Tort liability thresholds

As previously mentioned, no fault states have restrictions on legal procedures relating to auto related accidents. Most of these states require certain limits before one can legally proceed. This process is the tort liability threshold. Besides financial limits, the threshold also has medical limits such as the amount of days one misses from work, before one can sue for loss of wages. Take the time to research and discuss the threshold limits of your policy to ensure the financial limits on your insurance policy are sufficient to protect your vehicle and financial well-being.

History of No Fault

On June 4, 1971, Florida became the second state in the union after Massachusetts to pass a no fault system of vehicle insurance. By January 1, 1972, the Florida Automobile Reparations Reform Act or "no fault law" took effect. This piece of legislation passed in an effort to prevent fraud, lower premiums, and to enable injured parties to receive compensation without having to deal with the long delays of the traditional tort system. In fact, with the initial legislation, insurance companies were required to pay claims within 30 days. Over the years, this law has changed including requiring drivers to carry the initial $5,000 worth of Personal Injury Protection (PIP) to the current $10,000 minimum.

Florida traffic crash statistics

Each year, Florida's Highway Safety and Motor Vehicles department releases a list of pertinent information relating to traffic accidents. This list features a variety of useful information including the time, day, and cause of accidents as well as information relating to accidents involving pedestrians, bicycles, and alcohol related accidents. This information is available at http://www.flhsmv.gov/reports/crash_facts.html. Some of the overwhelming facts from the last published report in 2006 include:
 Other No Fault states

Below is a list of the 12 states that employ the no fault system of car insurance:

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