Florida is a "No Fault" state...so what does that mean?
If you have ever heard reference to Florida as being a “No-Fault” state, you may wonder what that means. A common misconception is that someone who causes a car crash is not responsible for the damages they cause. That is not correct. Let's explore what it really means to be a No Fault state.
Why is Florida called a "No Fault" state?Florida's reference as a "No Fault" state simply refers to the requirement that drivers carry PIP insurance. That's it. As Florida requires you to purchase PIP insurance to operate a motor vehicle, and because this insurance pays regardless of who is at fault for the crash, Florida is referred to as a "No Fault" state.
What is No Fault Insurance?Car insurance policies include a number of different insurance coverages. Some coverages are required, some are optional. One of the required coverages is called Personal Injury Protection insurance, commonly known as PIP insurance. PIP insurance is insurance that YOU must purchase or have in place to help pay for medical bills or lost wages due to a car crash. Typically, PIP insurance provides at least $10,000.00 in benefits to help pay medical bills or lost wages. PIP insurance benefits are typically paid out by your insurance company, regardless of who causes the crash. If you cause the crash, your auto insurance pays toward your medical bills or lost wages. If someone else caused the crash, your auto insurance still pays toward your medical bills or lost wages.