“No-fault insurance” means that the carrier of your auto insurance will take on the task of paying either some or all of your accumulated medical bills, as well as lost earnings, in the case of an accident. This holds regardless of who is at fault.
In these following states, a “no-fault” claim is covered under your personal injury protection benefits, otherwise known as PIP benefits. This includes: Florida, District of Columbia, Hawaii, Kansas, Kentucky, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
In Florida, it is required that all drivers have Personal Injury Protection benefits under their insurance policies at minimum. This includes $10,000 in (PIP) benefits and $10,000 in property damage liability benefits.
Not only does PIP cover the individual in an accident, but there are several very case-specific scenarios in which PIP will cover others. For example, it will cover the individual’s child/children, relatives within the household, passengers without PIP coverage and who don’t own a vehicle, and licensed drivers who drive the vehicle with permission.
In many states, it is not required to make a claim for personal injury damages against another driver unless your medical bills reach a certain level or your injury is considerably serious. This was enforced in an attempt to avoid smaller claims and congestion in the court system.
In Florida, for example, only accidents that result in permanent injury or significant and permanent scarring or disfigurement will allow someone to make a claim outside of the “no-fault” regulations. Since these conditions are quite vague, consulting with an attorney to see if you qualify beforehand would be recommended.
The clearest advantage to the Florida No-Fault Law is that it allows for speedy payment of claims for medical bills and a loss of wages alike, without the need to investigate or determine fault. With that being said, there are also certain limitations like not providing for emotional distress, inconvenience, or similarly linked issues.