You may wonder who to hold accountable for your auto accident if you reside in a no-fault state, such as Florida.
Without fault, from whom will you seek compensation? Who will cover the costs of the damages inflicted on you and your property, and where can you go for assistance?
The phrase “no-fault insurance” confuses many individuals. It does not imply that liability for auto accidents is never there.
At the same time, it doesn’t exclude you from speaking with a lawyer and seeking compensation for your injuries.
So, what exactly happens if you are in a car accident in a no-fault state? Read on to find out.
Fault vs. No-fault States
In the United States, each state can choose the kinds of vehicle insurance regulations they will impose. Some states opt to be no-fault states, whereas others opt to be tort liability states.
Contrary to popular belief, there are fewer distinctions between fault (tort) and no-fault states.
In a tort state, the at-fault driver’s property damage liability insurance covers the vehicle repair costs of the other party. Meanwhile, their bodily injury liability insurance pays for their medical bills up to policy limits.
Blame is still placed on someone when an accident occurs in no-fault states. The main differentiator is who foot’s hospital bills.
In a no-fault state, all motorists must have personal injury protection coverage (in addition to the minimum liability insurance), which covers lost income and medical costs regardless of who was at fault for the collision.
What is No-fault Insurance?
Most U.S. states mandate no-fault state auto insurance, often known as personal injury protection (PIP) coverage.
In these states, one must carry the minimum auto insurance to drive legally. This often includes coverage for both property damage liability and bodily injury liability.
You would file a claim with the negligent party’s insurance provider for your medical expenses in an at-fault state. But in a no-fault state, you claim with your insurance for medical bills regardless of who was at fault.
Negligence is the key variable in this case. Determining fault is challenging, but insurers frequently rely on evidence of the driver’s carelessness.
Remember your level of fault may affect your premiums and claim settlement. This is especially true if you are found to be at least 50% negligent.
Furthermore, filing a claim under a no-fault insurance policy doesn’t guarantee that you will receive compensation. Even if you do, it can be limited.
You can bring additional claims for pain and suffering damages under an at-fault insurance policy but not with a no-fault insurance policy.
What Does PIP Insurance Cover?
Many states mandate no-fault state auto insurance, often known as personal injury protection (PIP) coverage.
PIP coverage was created as a mechanism to compensate vehicle accident victims through their insurance promptly, and it is present regardless of who was at fault for the collision.
Its main objective is to decrease the number of personal injury claims made by motorists. PIP plans often pay for a part of the following damages:
- Medical expenses: Personal injury protection insurance (PIP) covers up to 80% of emergency medical expenses up to the policy’s limit, provided that the patient receives care from a licensed doctor, hospital, or hospital-owned facility. The policy provides up to $2,500 for less severe injuries.
- Lost earnings: PIP insurance pays a percentage of the wages that an accident victim lost because they could not work due to their injuries or because they had to leave work to attend doctor’s appointments or other associated medical treatments.
- Death benefits: These cover funeral and burial costs. The PIP plans in Florida offer qualifying survivors death benefits of up to $5,000.
Damages Not Covered by PIP Policies
While a person’s PIP coverage often covers some damages, many auto accident damages are not. No-fault auto insurance policies exclude the following things:
- You and the other driver’s property damage
- Physical injury of the other vehicle’s occupants
- Bodily injuries of adult passengers in your car or adult friends who borrowed your car as long as they carry their PIP coverage and are not mentioned in your policy
- Pain and suffering claims
Which States Require No-Fault Car Insurance?
The U.S. is home to several no-fault states. Florida is a no-fault state, although lawmakers have attempted to overturn these rules without success.
The following states, in addition to Florida, have no-fault insurance systems:
- Kentucky
- Massachusetts
- Michigan
- District of Columbia
- Hawaii
- Kansas
- Minnesota
- Puerto Rico
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
These regions have different no-fault insurance policies and claim procedures. While purchasing automobile insurance coverage, residents in some states can opt out of the no-fault system.
However, Florida’s no-fault insurance laws require you to have a no-fault state auto insurance policy with a minimum maximum of $10,000 at the time of vehicle registration.
Additionally, if you cause an accident, you must have property damage liability insurance to pay for any damage to the other driver’s car.
The Benefits and Disadvantages of Florida’s No-Fault Law
No-fault insurance enthusiasts appreciate that it enables drivers injured in a vehicle accident to work with their insurer.
The conventional technique of assigning fault requires accident victims to prove their damages to the other motorist’s insurer. This frequently leads to filing an automobile accident lawsuit for compensation.
PIP does not require a determination of fault before providing coverage. This implies that insurance coverage quickly pays out medical costs and lost income.
No-fault state auto insurance legislation does have some drawbacks, though.
Cons of no-fault car insurance
One drawback of this kind of insurance would be the possibility of premium increases following a claim on the driver’s policy, even if they were not at fault for the collision.
Legislation that took effect in 2013 governs the compensation amount a person can receive for their PIP claim. As a result, people who don’t need emergency treatment usually receive lower compensation.
A person cannot initiate a personal injury case against the at-fault motorist and receive money for general damages like pain and suffering unless their injuries are irreparable.
Auto insurance companies pay for more medical care in no-fault jurisdictions at a greater cost than in fault-based states.
Additionally, there are more false claims in no-fault jurisdictions. The number of false PIP claims that Florida gets is said to have decreased significantly due to the revisions to the state’s no-fault insurance system that were approved in 2012 and took effect in 2013.
What Happens When You Get into a No-Fault Car Accident in Florida?
You may hear individuals talk about a no-fault automobile collision. This doesn’t imply that no one is at fault.
Some individuals in states with no-fault legislation use this phrase to depict an auto accident that takes place in a no-fault state.
Every vehicle accident has a cause, and one way to maximize the compensation you receive for your losses and damages is to establish who was at fault for the accident.
When you are found at fault for a car accident
You may often file a claim to your insurance carrier under your PIP coverage if you cause a car accident and sustain injuries. Your insurance provider might not let you claim compensation if you were driving while intoxicated at the time of the collision or if you did it on purpose.
To be eligible for reimbursement under your PIP coverage in Florida, you must seek medical attention within fourteen days of the accident.
If the other driver or car’s occupants are also hurt, their PIP insurance will cover their injuries up to the policy’s limits. However, they could file a third-party claim against your insurance if their costs exceed the policy’s maximum.
Florida offers a pure comparative negligence system for personal injury cases and a no-fault system for auto accidents.
That implies that in the event of significant and lasting injuries, the other motorist may still pursue financial compensation from you even if they shared some fault for the collision. However, their share of the fault will be deducted from whatever compensation they get.
When another driver is at fault for an accident
If you sustain injuries in an automobile accident that was someone else’s fault, you should get medical help immediately. Florida’s no-fault insurance law mandates that you undergo initial medical care within 14 days of your accident to be eligible for PIP coverage.
Avoiding treatment might prevent you from receiving PIP compensation and make it more difficult to get reimbursed by any supplementary insurance you have.
Even if your injuries are severe or long-lasting, you should still file a claim under your PIP coverage. You will then be able to seek compensation for your initial medical care.
The initial emergency hospital visit will rapidly deplete the $10,000 insurance coverage. So, consider hiring a no-fault car accident lawyer to discuss your legal alternatives and prepare a strong case.
Your attorney can help you file a third-party claim or a personal injury lawsuit if the driver has bodily injury liability insurance.
Why Did My Insurance Company Deny My PIP Claim?
You pay the insurance payments religiously and now have filed a claim with your PIP insurance after being hurt in an accident. Could your insurer deny your claim for a vehicle accident?
Unfortunately, yes. There are numerous reasons why insurers reject no-fault PIP car accident claims, including:
- The medical treatment you sought wasn’t required or appropriate
- The medical care wasn’t approved by a licensed physician, hospital, or hospital-based facility
- The deadline for filing a claim has lapsed
- You failed to seek medical attention within 14 days to be eligible for PIP coverage
- A pre-existing condition was the cause of the injuries
- The vehicle collision did not result in injuries
- You knowingly contributed to the crash
- You were committing a crime when the vehicle accident happened
- You were operating another person’s vehicle without their consent when the collision occurred
- Your policy has expired
- Your policy does not provide coverage for the damages you are requesting
Insurance companies reject no-fault auto accident claims for a myriad of reasons. Claims adjusters look for excuses to withhold payment, even when there’s concrete evidence proving you deserve it.
They may even make an arbitrary reduction in compensation. Sadly, many people injured in vehicle accidents contact car accident attorneys when they experience problems working with their insurance providers.
Please don’t wait till it’s too late. Contact an attorney immediately after the accident to assist you in dealing with your insurance provider and your PIP claim.
Can I File a Car Accident Lawsuit Against a Negligent Driver in a No-Fault State?
Accident victims with significant and lasting injuries and whose losses exceed the PIP coverage limitations can file a personal injury lawsuit in no-fault jurisdictions like Florida.
According to the law, permanent injuries include:
- Substantial and irreversible loss of a vital bodily function
- Permanent injury within an acceptable range of medical probability
- Significant deformity or scarring
- Wrongful death
You may pursue the recovery of damages for the following things if your injury fits the legal standard for permanent injury under Florida state law:
- Medical costs beyond your PIP policy limit and future medical care
- Lost income and diminished ability to earn in the future
- The cost of the domestic services you can no longer perform because of your injuries
- Property damage resulting from the accident
- Permanent disability or deformity
- Pain and suffering
- Loss of consortium
- Emotional distress
Pursuing Compensation After a Car Accident with a Lawyer’s Help
If you seek compensation through a personal injury lawsuit, your Florida no-fault state automobile accident attorney determine whether any of the following circumstances apply:
Were there multiple parties responsible? In Florida, a person, company, or other entity may be held liable if they were at least 10% responsible for the accident that resulted in your significant injury or permanent disability.
For example, if a careless driver operating a business vehicle caused your accident, the driver and his employer may be held accountable for your injuries.
Will you file a case before the state’s statute of limitations lapses? Florida motorists have four years from the date of the accident to file a personal injury claim.
What were your losses, and how much should you demand? Your lawyer will assist you in deciding how much compensation to demand. Your car accident attorney will calculate this based on the costs of your general damages, including effects on your quality of life, like pain and suffering or emotional distress, and the costs of your economic damages, which include medical expenses and lost wages.
Your lawyer will also analyze the facts of your case to know whether to add punitive damages to your claim, meant to punish defendants whose behavior was outright reckless.
Do I Need a Car Accident Attorney to File a Claim on My No-Fault Insurance?
It’s not mandatory to have legal representation to file a claim with your no-fault insurance provider.
But it is always beneficial to have a car accident attorney on your side to offer advice and respond to any inquiries you may have.
Also, you might want to discuss your case with a vehicle accident lawyer to establish your best legal options if your PIP provider disputes your coverage or if your costs exceed the policy’s limits.
Consult With a No-Fault State Car Accident Attorney
The no-fault state laws are quite confusing in an accident resulting in severe and permanent injuries. You will likely have to hire an experienced no-fault car accident attorney to help you.
Legal Giant partners with expert attorneys who can provide the knowledge and resources you need to maximize the compensation you can be awarded to cover your damages.
Our partner car accident attorneys may provide you with their renowned legal knowledge, settlement bargaining abilities, and courtroom representation while keeping in constant contact with the client to keep you updated on the outcome of your case.
Contact us at (855) 740-5024 for a free, no-obligation consultation.
