No fault insurance, sometimes referred to as Personal Injury Protection (PIP), is basically means that if you are involved in an accident, no matter whose fault it is, your insurance company will pay some or all for your medical bill and loss of earnings. There are about twelve states that have no fault insurance laws, which you can purchase along with your cheap car insurance. They include, District of Columbia, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Florida Legislature and Florida insurance companies have a provision that requires the insurance company to cover the insured, not matter which driver is at fault. In Florida, PIP coverage is required to be purchased by all owners of motor vehicles. An important element of the no fault law is that you, and the insured, are not allowed to file a claim for personal injury, UNLESS you medical bills are over a certain amount. That amount is designated by the specifics of each policy, but in many cases, unless medical bills are more than $3,000, or you have more serious injuries, you are responsible for the costs. This restriction was placed in the no fault laws as a way to try to streamline car accident claims, especially smaller claims. You can increase the limits and in most cases still get the best cheap car insurance coverage.
Who is Covered Under No Fault Insurance in Florida?
Even though all Florida vehicle owners are required to carry minimum PIP benefits, this protection benefit more than just the policyholder who is injured. According to the Florida Department of Highway Safety and Motor Vehicles, PIP coverage also applies to:
- Injuries that happen to your children, whether they are in your car or on a school bus.
- Any members of your household, and most passengers who lack PIP Insurance, if they do not own a car.
- PIP coverage also protects you while you’re a passenger in someone else’s car, or as a pedestrian or bicyclist and are hit by a car, or any other accident involving a motor vehicle.
Florida drivers can only pursue a claim against the at-fault driver if they have permanent injuries, disfigurement, or scarring, or if there is a permanent loss of a vital bodily function that was directly caused by the crash. Every state has a different set of laws regarding the limits of the benefits. In some “no fault” states, there is a limit to what benefits your own automobile insurance company will pay you, but in others, there is no limit.
What Is A No Fault Insurance Claim?
A no fault insurance claim, or PIP claim, is one you make against your own automobile insurer for payment of medical bills and lost earnings. Your insurance company will pay your medical bills and will reimburse you for some of all of your lost earnings up to your state’s no fault limit, or the amount of your claim, whichever is lower. In some states the injured person has health insurance, so the no fault insurer would only pay a small amount of the injured person’s medical bills, and the health insurer will pay the remainder.
No matter what, once your medical bills surpass your state’s no fault limit, you are liable for paying them. You are also required to cooperate with your insurance company, which may require you to give your insurer a recorded statement and attend a medical examination with a physician selected by the insurer. In addition, you should not give a recorded statement to the defendant’s insurance company. For more specific details on Florida no fault insurance, read this article. If you get into an accident in a no fault state, and feel that you need legal advice on making your claim, it is a good idea to contact a knowledgeable car accident lawyer, and do everything you can to maintain the best cheap car insurance.