No-Fault Insurance Florida

No-Fault Insurance Florida

The Florida Department of Highway Safety and Motor Vehicles, or FLHSMV, reported that the state had over 340,000 car crashes as of December 2023. This number of vehicles also shows an estimated number of people who might have experienced Florida’s no-fault insurance policy. 

What is Florida’s no-fault insurance policy? How can it help motorists feel safe and secure driving on state roads with this kind of insurance law in effect? 

This article explains Florida’s no-fault law and how it works. It also discusses the benefits and disadvantages of this state’s insurance policy. Furthermore, this write-up tackles concepts like personal injury protection (PIP), property damage liability (PDL), and statute of limitations. 

If you’re involved in a car accident, contact a lawyer to help you out. Visit and access a database of thousands of lawyers nationwide. You only need to select your state and browse through the different legal professionals according to the type of lawsuit you’re involved in.

Understanding the Florida No-Fault Law

The State of Florida is among those jurisdictions implementing the “no-fault” motor vehicle law in the United States. This law requires vehicle owners and drivers to have a no-fault insurance policy with personal injury protection (PIP) auto insurance coverage. 

The PIP policy type can cover the insured individual’s medical bills, lost wages, and replacement services costs associated with a car crash, regardless of who was at fault. 

Note that PIP insurance is different from liability insurance, and it benefits the insured individual only. Furthermore, PIP coverage and the no-fault car insurance policy apply to anyone driving an owned, borrowed, or rented vehicle in Florida. 

Florida Is a No-Fault State: What Does That Mean?

When a state is considered a “no-fault state,” all car accidents within the state follow the “no-fault” law. As such, drivers involved in car accidents must turn to their own insurance company to get compensated, regardless of who was at fault. 

However, though the law aims to provide Florida drivers with an easy insurance system, many remain skeptical of the no-fault insurance laws. The following are some criticisms of this state law. 

An Incubator for Fraud

Some skeptics see Florida’s no-fault law because of an alarming rate of staged crashes, among them the “swoop and squat” type causing a flood of personal injury lawsuits. 

Victims of these staged crashes then go to doctors and chiropractors who are also participating in the scam to file fraudulent insurance claims. 

Furthermore, according to NAIC or the National Association of Insurance Commissioners, Florida ranks among the costliest auto insurance states. Florida drivers spend an average of $1,426 on car insurance, compared to the national rate of $1,057. 

Benefits of the No-Fault System

The Florida “No-fault” law received a mix of criticism and approval from many citizens. However, some vocal opponents want to change this law to reduce the problems it seemingly promotes. 

To further understand how people see the no-fault law, here is a list of the pros and cons of Florida’s auto accident insurance policy. 

Pros of No-Fault Insurance

The following are some of the benefits of the no-fault insurance policy for drivers in Florida. 

  • It provides a quicker claims process since each driver’s insurance company is responsible for paying compensation. No-fault states don’t require fault determination and don’t wait for the at-fault party to pay compensation. 
  • It offers lower premiums because there’s no need for fault determination, and the insurance companies don’t need to worry about the payout to the other driver.
  • It gives personal injury protection (PIP), which covers all drivers. The PIP covers:
    • Medical expenses, like medical treatment
  • Loss of wages, regardless of who’s at fault

Cons of No-Fault Insurance

The following are some of the disadvantages of the no-fault laws in Florida.

  • It allows limited liability, one main drawback of the no-fault system. This limitation means that drivers deemed at fault for the car crash aren’t required to pay for the damages of others.
  • It sets limits to damages even if the insured person sustains serious injuries. This limit means that even if the medical expenses ramp up, accident victims may not recover all their damages. 
  • It makes it difficult to determine who’s at fault because the no-fault law doesn’t require it. The difficulty in fault determination becomes apparent during multiple car crashes involving more than one driver. 

Critics of the No-Fault System

The no-fault system has gained several critics who question the viability of the existing law and whether a changeover is required. The following are some contentions that skeptics of this law have put forward. 

The Changeover

One critical contention for the no-fault law is its PIP coverage amount, which is $10,000. However, many people, including supporters of this Florida bill, say that the current cap of $10,000 doesn’t cover the average cost of medical claims. 

Furthermore, the Tampa Bay Times revealed that the 1979 threshold of $10,000, calculated to today’s value, would be $77,000. 

Florida legislators propose Senate Bill 54 to shift from the $10,000 in PIP to a liability coverage of $25,000 per individual or $50,000 per accident for injuries sustained by other individuals. 

In Agreement

Despite the intention of SB54 to revamp the no-fault law, many share concerns about the potential financial implications of replacing the existing law. If approved, Senate Bill 54 may lead to a further increase in annual insurance coverage in Florida. 

Furthermore, some Florida state officials like Chief Financial Officer Jimmy Patronis worry that the new bill may increase the number of uninsured motorists. 

Young Drivers

Another feature of the no-fault law is that parents or guardians can include their teen drivers in their insurance policies. However, they may get their own insurance policy. Regardless of age, young drivers can remain on their parent’s policy if they share a residential address. 

What Are Florida’s Insurance Requirements?

The Florida Department of Highway Safety and Motor Vehicles, or FLHSMV, provides the following requirements for the current insurance policies in the state. 

  • Drivers must have a $10,000 minimum in personal injury protection coverage (PIP)
  • Drivers must have a minimum of $10,000 in property damage liability (PDL)

On the other hand, Florida doesn’t require bodily injury liability (BDL) coverage, except for public transport drivers like taxis and drivers with a history of driving under the influence (DUI).

What Does PIP Pay for?

Florida statute § 627.73 states that PIP insurance pays for 80% of all necessary yet reasonable medical expenses resulting from a car accident. Necessary medical expenses include:

  • Emergency transportation
  • Surgical procedures
  • Hospitalization
  • Nursing services
  • Dental work

However, you can only receive coverage if you’ve sought initial medical treatment within 14 days of the accident. 

Aside from medical expenses, PIP provides 60% coverage for gross wage and future earning capacity loss because of one’s inability to work due to injuries. The statute states that insurance companies must pay these benefits every two weeks. 

Finally, the PIP also provides $5,000 death benefits for loved ones who have died because of an accident injury. Insurance companies pay this benefit on top of coverage for the deceased loved one’s final medical expenses and lost wages.

What Does No-Fault Insurance Cover?

No-fault insurance covers medical treatment, lost wages, and additional child care, especially if the accident made it hard for you to care for your child. 

Additionally, the PIP insurance included in the no-fault law covers the same expenses for every passenger in your vehicle. 

Who’s Covered Under Personal Injury Protection in Florida?

The PIP benefits in a car insurance policy, specifically in Florida, apply to the following individuals:

  • The policyholder (note that PIP covers the policyholder when they’re passengers of another vehicle or as a pedestrian)
  • The policyholder’s children (note that this coverage doesn’t only apply to children inside their parent or guardian’s vehicle but also to children riding a school bus)
  • The policyholder’s household members

What’s the “14-Day Rule” in Florida Car Insurance Claims?

The 14-day rule in Florida law means that accident victims must get medical care within 14 days of a car crash to be eligible for PIP benefits. 

You may need a personal injury lawyer to help you document your medical treatments to ensure that your insurance company covers everything you spend. 

What Is a “Serious Injury” Under Florida Law?

When you want to file a personal injury case in Florida, you’ll need to prove that you sustained severe injuries. Florida provides a serious injury threshold or tort threshold to determine whether a person indeed sustained a serious injury

According to Florida Statute 627.737, an injury is severe if the following are present:

  • Significant or permanent loss of critical bodily functions
  • Permanent injuries
  • Disfigurement or significant or permanent scarring
  • Injuries that led a person to a close probability of death

What Does 10/20/10 Mean in Insurance?

In Florida, there’s a “10/20/10 minimum” insurance limit, which means that the insured individual gets:

  • $10,000 for bodily injury coverage per person
  • $20,000 cap payout per accident
  • $10,000 for property damage coverage per accident

Additionally, limitations for medical payments apply per person per accident. They also provide insured drivers primary coverage when operating an owned automobile. When the driver operates a non-owned vehicle, the typical coverage limits are $500, $1,000, and $5,000. 

The insurance policy protects the insured driver when involved in a motor vehicle accident case with an uninsured or under-insured motorist. The limits for uninsured motorists aren’t greater than the standard liability limits. 

Who Pays for Damage in a No-Fault State Like Florida?

No-fault insurance states that the at-fault driver’s insurance policy covers the property damages resulting from an accident. However, each driver’s personal injury protection insurance (PIP) covers their medical expenses and wage loss, regardless of who is at fault. 

Where Does No-Fault Coverage Fit Into Your Auto Insurance Policy?

Let’s look at this example to explain how no-fault coverage fits into your car insurance policy. 

For instance, if the driver’s medical losses reach $25,000, the policy pays the first $15,000. The at-fault driver becomes liable for the remaining medical bills amounting to $10,000. 

However, if the at-fault driver carries a 10/20/10 policy, they will only pay the insured individual the remaining $10,000. Suppose the insured driver gets into an accident with an uninsured motorist who is also at fault. In that case, the insured driver needs uninsured motorist coverage for the remaining $10,000.  

Are There Any Exceptions to No-Fault Insurance? Is It Optional?

The no-fault insurance has few exceptions under whether your injuries qualify as serious injuries. If so, you can file a liability claim against the driver at fault. For injuries considered serious, a personal injury claim can be pursued out of the PIP. However, the classification of serious injuries can vary between states. 

“Can I Admit Fault?”

You can admit fault, but you may be putting yourself in a worse situation, especially if you’re not fully aware of your rights and benefits as a driver in Florida. 

When confronted with this dilemma, it’s best to consult a personal injury attorney to help you make the right decisions, especially if you want to admit fault in an accident case. 

When Can You Seek Compensation From Another Party?

You can pursue fair compensation from an at-fault driver if you have sustained serious injuries due to the accident. You can demand compensation via claims against the other party’s liability insurance or filing a personal injury lawsuit. 

Though your PIP limits insurance payments to medical expenses, lost wages, and death benefits, you can demand compensation from another driver. If so, you would want to seek awards for property damages and the emotional toll, like the pain and suffering you’ve endured because of the accident that lowered your quality of life. 

Proving Negligence to Win Awards From Another Party

One crucial factor that determines fault in a car accident is the presence of driver’s negligence. Negligence is the failure to behave or act in a manner of care a reasonable person would do under the same situation. Whoever is proven to have acted negligently may become liable for the accident. 

To win a settlement case, you must prove that the other party is negligent in their actions as a driver. You can get this determination through the help of a car accident lawyer, who can piece together critical information to determine who is at fault. 

Sometimes, you can file a lawsuit against the government if bad road conditions cause an accident because of neglected repairs by a roadways authority. 

How Can a Car Accident Attorney Help With Your Case?

Here are some of the primary tasks of an attorney who will handle your cases involving car accidents and injury settlements.

  • Investigate claims: An attorney determines the strengths and weaknesses of your claims. Personal injury attorneys or lawyers can advise you on the best course of action, like when pursuing a personal injury lawsuit or accepting a car accident settlement. 
  • Gather Evidence: An attorney can assist you in gathering documents needed to serve as evidence to back up your claims or lawsuits. 
  • Negotiate With Insurance Companies: Attorneys can discuss insurance policies in easy-to-understand terms and represent your best interests in front of insurance companies. 
  • Send Demand Letters: Attorneys can compose demand letters addressed to an at-fault party to communicate your desire to proceed with the accident claims or personal injury lawsuit.  
  • Prepare Pleadings: There are instances where a car accident claim case needs to be settled in court. An attorney can help you prepare pleadings that point out your case. 
  • Conduct Discovery: A personal injury attorney can help conduct a deposition, ask for specific information, and send formal questions or interrogatories. 
  • Represent Clients at Trial: Attorneys can represent you and your best interests in court when legal action is required to assert your rights for fair compensation.

Florida’s Statute of Limitations

A statute of limitations is a limit provided by law when one can file a lawsuit. In Florida, the statute of limitations is four years from the date of the car crash. 

If you’ve missed this deadline, the court will most likely dismiss your case. A car accident lawyer can assist you in filing claims or lawsuits and meeting this deadline. 

Car Accidents in No-Fault States

Suppose you got involved in a car accident in a no-fault state like Florida. In that case, your PIP insurance will cover your medical expenses. This is the main benefit of this form of insurance policy. 

However, you must still make notes about the crash or have a lawyer document the accident. 

In cases where injuries are severe and debilitating, you can ask your lawyers to file a claim or lawsuit to demand fair compensation. When documenting an accident, you should consider the following:

  • Record the driver’s name, license number, and insurance information
  • Note the vehicle license plates involved in the crash
  • Snap photos or videos of the accident
  • Take photos or videos of injuries you or your passengers sustained
  • Obtain police reports about the accident

What Is the Impact of Florida No-Fault Insurance on a Car Accident Claim?

Despite the relative ease of no-fault insurance, as you don’t need to determine fault, it can still be complicated. Having a personal injury lawyer to help you process your claims with an insurance company is best.  

Economic Damages

In a car crash, damages may come from property damages, medical bills, lost wages, and lost capacity to earn. These damages are called economic damages. PIP insurance aims to cover economic damages during a car accident. 

However, in Florida, one problem with PIP insurance is it only covers a limit of $10,000. Any amount exceeding the PIP cap will end in a claim or lawsuit against the at-fault driver. 

Non-economic Damages

In a car accident, other damages may arise aside from economic damages. These damages are called non-economic damages, like pain, suffering, and the loss of one’s enjoyment of life.

However, in Florida, PIP coverage doesn’t include such damages, even the effects of pain and suffering you may experience after the accident. You must file a car accident claim or a lawsuit against the liable driver to receive fair compensation.  

Florida Car Accident Attorneys Ready to Help You

Car accidents are severe incidents that can result in trauma. When involved in this kind of incident, always get the services of a personal injury lawyer. 

You can visit can visit Our site gives you access to a nationwide directory of personal injury lawyers able to help in your case. You can find law firms that provide free consultation and free case evaluations to foster a healthy attorney-client relationship. 

FAQs (Frequently Asked Questions)

1. What are two types of required insurance to comply with Florida’s no-fault law?

The two types of insurance policy required to comply with Florida’s no-fault law are personal injury protection (PIP) and property damage liability (PDL).

2. Should I call my insurance if it wasn’t my fault in Florida?

Because of Florida’s no-fault law, your insurance company must pay car accident damages according to the policy you hold, regardless of who was at fault.

3. Will my insurance increase if the accident wasn’t my fault in Florida?

It is against Florida law for insurance companies to raise premiums for PIP, liability, and medical expenses because the insured individual got involved in a car accident. This specific Florida statute is stated in FS § 626.9541. 


  1. No-Fault Insurance in Florida: What Is It and Coverage Benefits
  2. Florida No-Fault Car Insurance
  3. Negligence
  4. Statute of Limitations: Definition, Types, and Example

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