Aug 22

What exactly is No-Fault Coverage in Florida, and is it required?

Car AccidentFirst, let me say that this is not designed to be a comprehensive or legal opinion of the no-fault law or the changes, but a quick overview of the key items someone should understand when carrying insurance and having a need to use the insurance (especially someone new to the state or someone who has never had to go through a claim with injuries).  Additionally, there were a number of changes in 2013 that we plan to discuss in a future post.

In its simplest form, Florida No-Fault coverage (generally called Personal Injury Protection, or PIP for short) is a required coverage under Florida law, and it provides up to three coverages that can provide up to $10,000 in benefits if you are involved in an automobile accident (as a driver, passenger, or pedestrian):

  • Medical Benefits – 80% of all reasonalble medical expenses
  • Disability Benefits – 60% of lost income
  • Death Benefits – $5,000, which is¬†in addition to the medical and disability benefits provided under the insurance policy

Finally, there are two main options to reduce coverage and cost of PIP:

  • Remove the Disability portion of the coverage – this can be helpful for those without a need or desire to protect themselves from a lost income situation
  • Add a deductible to the PIP coverage – this is not something we suggest, as it is rarely worth the savings with the companies we represent

For those who enjoy reading legal statutes (or need something to help them drift away to sleep), here is a link to the statute.

If you have questions on the Florida No-Fault coverage options, please don’t hesitate to call or e-mail at anytime…