How Does a No-Fault Accident Work? | Florida Farm Bureau Insurance (2024)

FAQs

How Does a No-Fault Accident Work? | Florida Farm Bureau Insurance? ›

No-fault means the drivers involved in the accident won't necessarily need to exchange insurance information. Also, they will not need to worry about filing claims through each other's policies. However, a drawback is that this places additional costs on every driver, regardless of who caused the wreck.

Due to Florida's no-fault laws, your insurance will pay for your auto repair after an accident you did not cause in Florida. However, if the costs of damages exceed your policy limits, you may qualify to recover additional compensation elsewhere.

No-fault car insurance is a type of auto insurance system that provides coverage for medical expenses and other damages resulting from a car accident, regardless of who was at fault for the collision.

Florida's No-Fault Law

When an at-fault driver does not have car insurance, you may need to file a lawsuit in order to recover your losses. A personal injury lawyer can do this on your behalf. The courts in Florida will follow the comparative fault rule, as per Florida Statute 768.81, to determine liability.

Florida is one of the few states in the United States that operates under a no-fault auto insurance system. This means that drivers are required to carry personal injury protection (PIP) insurance, which covers medical expenses and lost wages regardless of who is at fault for a car accident.

Generally, your car insurance will not go up after a claim that is not your fault in Florida. This is according to Florida Statutes §626.9541(1)(g)3).

In the State of Florida, you have to pay your deductible even if the accident was not your fault. Having said this, if another party is proven to be at fault in your accident, you may have the opportunity to claim compensation to recover the deductible from your insurance company.

The primary financial responsibility of the at-fault driver is to cover the costs of property damage and medical expenses that exceed the PIP coverage limits of the injured parties. This can include repairs or replacement of vehicles, medical treatments, rehabilitation costs, and compensation for lost wages.

CONS: Fewer legal options: In most states, drivers with no-fault policies are restricted from suing unless the injuries meet a certain severity threshold. Potentially higher premiums: Some say no-fault insurance may lead to higher premiums due to more claims being filed.

This means your auto insurance company should pay the majority of your auto accident claim, up to a $10,000 limit. If the other driver is at fault, that driver's insurance company will cover the remaining 20 percent. However, if the other driver is uninsured, your only option for compensation is to file a lawsuit.

Should I call my insurance if it wasn't my fault in Florida? ›

If the Other Party Was at Fault:

This means that, as long as you report the damages within 14 days from the date of the accident, your own insurance company will cover up to $10,000 in damages (up to 80% of medical bills and up to 60% of lost wages).

In most cases, an accident will stay on your record for three to five years. However, some accidents can stay on your record for even longer, especially if they involve serious injuries or major property damage.

Insurance applies to the vehicle. So, if someone else is driving your car, and they get into a collision, it will be your insurance that will apply. This is because, in Florida, car insurance follows the vehicle first and the driver second.

Even though the Florida legislature passed an auto insurance overhaul bill that would have done away with the State's No-fault insurance system, Florida motorists are not currently required to obtain new insurance policies since the bill was not passed.

Ultimately, determining who is at fault is a matter for the courts. Insurance adjusters will review the evidence to decide which party they believe caused a crash and should pay for any resulting injuries, lost income, and other losses. However, an insurance company's decision is not final.

The Florida No Fault Insurance Law requires you to have both Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance. Covers the cost of your injuries regardless of who is at fault for the accident.

If your Florida auto accident settlement exceeds the available policy limits, you may be able to recover the remainder of your damages by suing the negligent party, relying on your uninsured/underinsured motorist policy, or accessing the defendant's umbrella insurance policy if applicable.

Physical Damage Coverage pays the cost of repairs or replacement of your car, minus your deductible. Collision covers damage to your car from an accident with another car or a physical object. Comprehensive covers damage to your car from events other than a collision, such as theft, fire, or vandalism.

However, any injured victims of a rear-end crash in Florida – whether or not they contributed to the crash in any way – must seek monetary compensation through their own insurance's PIP (personal injury protection) coverage first. Florida is a “no-fault” state.

Using driver accounts, police reports, and witness testimonies, the insurance company will make a decision about who is at fault and to what degree. In Florida, when more than one party is found to be at fault, each driver is held liable for their share of the losses from the crash in the form of a percentage.