What Is The Purpose Of No Fault Insurance?

The "no fault" law was introduced in the early 1970's to prevent small car accidents from becoming major law suits. 

Insurance companies were spending a lot of money to defend against minor claims, so a law was introduced to try to settle these issues without litigation.

There is now a threshold for legal action but, if your injuries or damages resulting from a car accident exceed the minimum protections, consulting an attorney is vital. 

Required Insurance Coverage in Florida

The current no fault insurance system is sometimes confusing. Instead of the at-fault driver or their insurance company paying for a victim's injuries, the victim's own insurance company pays for them up to the required minimum coverage of $10,000 Personal Injury Protection (PIP) In addition to PIP coverage, an additional $10,000 is expected to cover a driver in the event of property damage. This system is designed to make the payment faster and allow the victim to recover faster. The system, however, limits the victim's rights to pursue lawsuits.

Every driver and car owner in the state of Florida is required to have coverage including $10,000 PIP. 
Some drivers are not required to have PIP for themselves or passengers in specific vehicles. These vehicles include:
  • School buses (injured children are protected by their parents' coverage)
  • Limousines
  • Taxicabs
  • Motorcycles and other vehicles with less than four wheels
  • Vehicles that aren't self-propelled, such as mobile homes or inoperable vehicles.

What Happens to Uninsured Drivers in Car Accidents?

If an uninsured driver is in a car accident, they are not protected from a lawsuit and they can be held personally liable for the victim's damages and injuries over their $10,000 protection. The victim has 35 days to submit their medical bills if they are seeking compensation for their injuries. If the insurance company receives notice from the physician within 21 days of medical treatment is beginning, they can take up to 75 days to submit medical bills. 

Some frequently asked questions about no fault insurance and accidents are answered at the Florida Department of Highway Safety and Motor Vehicles.

It is very important that paperwork is filed on time with the correct information when dealing with a car accident. Making sure that the police report and insurance communications are accurate can save you time in your recovery. The no-fault insurance attorneys of Coye Law Firm can help explain your rights if you are involved in a car accident and have no-fault insurance.

Call 407.648.4940 or contact Coye Law Firm today for a free consultation about your case.

The expert injury attorneys at Coye Law Firm are experienced with Florida, New York, Michigan, and District of Columbia law and are here to help the injured.