Is Florida really a ‘No-Fault State'?

One of the most confusing monikers when dealing with insurance in Florida is: "Florida is a no-fault state," generally said phrase is not followed by any cognizable explanation as to its mysterious meaning. We should dispel the shroud of mystery, once and for all.

In auto accident cases, Florida follows a "no-fault insurance" system for certain damages. This means that after most traffic accidents, an injured person's own insurance policy will provide limited compensation for certain out-of-pocket losses like medical bills, lost income, and death benefits no matter who was at fault for the collision. This "no-fault" protection is required by state statute to be provided under every automotive insurance policy sold with the state of Florida and appears on the declarations page of your insurance policy as "Personal Injury Protection" or "PIP."

The intent in adopting the Personal Injury Protection system was to provide injured drivers up to $10,000 in compensation for certain limited damages, instead of having to file suit against the other individuals involved in an automotive collision. It is important to note that PIP only covers 80% of medical costs and 60% of the lost wages, again within the $10,000 limit.

The implications of the no-fault insurance scheme certainly do not end there. Under the no-fault system a person injured in an automotive collision is not entitled to receive compensation for any pain, disability, disfigurement, nor loss for the enjoyment of life unless the injured person can prove that the injuries sustained are permanent. A permanent injury is defined as one that results in a significant and permanent scarring or disfigurement, significant and permanent loss of a bodily function, and/or an injury that the evidence shows is permanent to a reasonable degree of medical probability. As one might imagine the permanency of an injury is subjective and open to interpretation in many circumstances leading to contested disputes.

This is not a comprehensive guide to Personal Injury Protection, its benefits, nor its drawbacks, specific questions or situations should be asked of licensed professionals. I hope that this has shed a bit of light on the Florida being a no-fault state, it should likely read a bit more like: "no-fault up to the first $10,000," but that does not have the same ring to it.