Why is Florida a No-Fault State? (PIP Series 1 of 3)
In the 1960’s, insurance companies were bombarded with lawsuits by individuals that sustained injuries as a result of an automobile accident. Back then, the person suing for injuries didn’t have to meet any type of threshold as to the injury itself. Meaning, a person could sue for merely having sustained a bruise that went away a week later and actually be victorious in court. Therefore, in 1971, the Florida Legislature passed the Florida Automobile Reparations Reform Act to alleviate insurance companies as well as the courts with the number of lawsuits filed.
This Statute that the legislature passed was the beginning of what is called No-Fault insurance, which is what pays for Personal Injury Protection benefits. By enacting this Statute, the Florida Legislature took away individual’s right to sue for injuries sustained in a car accident unless that injury the person sustained is permanent in nature and treating it costs more than $10,000. In turn, individuals were given the right to collect up to $10,000 in medical benefits and/or lost wages no matter what the injury was so long as the treatment was reasonable and necessary.
So what does all this mean for you, the insured? Very simple. The Statute forces all drivers in the State of Florida to have Personal Injury Protection benefits. If you, the insured get into an accident, your own insurance company will pay for medical bills and any lost wages you sustained as a result of the accident no matter who was at fault for the accident. This is where the Statute gets its No-Fault name. But beware, there are many limits.
If you have any questions, please feel free to contact the Law Offices of Lucas, Green & Magazine and ask for Attorney Martin Macyszyn. I will gladly speak to you and answer any questions you may have.