Florida No-Fault Insurance – Part 1 of a 3 Part PIP Series
Why is Florida a No Fault State?
Personal Injury Protection in Florida
Have you ever wondered why Florida is a No Fault State– or even what “No-Fault” really means?
In the 1960’s, insurance providers were saturated with lawsuits by individuals that suffered injuries as a result of an automobile accident. Back then, the person suing for injuries didn’t have to meet any type of threshold as to the injury itself. Meaning, a person could sue for merely having sustained a bruise that went away a week later and actually be win in Court.
In 1971, the Florida Legislature passed the Florida Automobile Reparations Reform Act to alleviate insurance companies as well as the courts with the number of claims filed.This Statute that the legislature passed was the starting point of what is called No-Fault insurance, which is what pays for Personal Injury Protection benefits. By enacting this Statute, the Florida Legislature took away individual’s right to file suit for injuries suffered in a car accident unless that injury the person suffered is permanent in nature and treating it costs more than $ 10,000. In turn, consumers were given the right to collect up to $ 10,000 in medical benefits and/or lost wages no matter what the injury was so long as the treatment was reasonable and necessary.
So what does all this mean for the consumer? Very simple. The Statute forces all drivers in the State of Florida to have Personal Injury Protection benefits. If you, the insured get into an accident, your own company will pay for medical bills and any lost wages you sustained as a result of the accident no matter who was at fault for the accident. This is where the Statute gets its No-Fault name. But beware, there are many limits.