If you’ve been involved in a car accident in Florida, you may have heard the term “no-fault state.” This term is used to describe the way auto insurance works in a select few states, including Florida. Understanding how Florida’s no-fault system works is important for anyone navigating the aftermath of a car crash.
What Does “No-Fault” Mean in Florida?
Florida is one of the few states in the U.S. that operates under a no-fault insurance system. This means that, after an accident, you will file a claim with your own insurance company to cover your medical expenses, lost wages, and other accident-related costs. It doesn’t matter who was at fault for the crash.
In Florida’s no-fault system, you are required to carry Personal Injury Protection (PIP) insurance. PIP insurance covers you for a percentage of your medical bills and lost wages up to your policy limits, regardless of whether you were at fault for the accident. PIP coverage is intended to provide immediate financial relief to accident victims. In theory, this reduces the need to file a lawsuit in most cases.
However, Florida’s no-fault system has its exceptions which allow you to file a claim against the party responsible for your crash. These claims can lead to substantially more compensation than what your PIP can offer, so it’s worth looking into.
How Does Florida’s No-Fault Insurance Work?
When you are involved in an accident in Florida, the first step is to file a claim with your own insurance company for PIP coverage. Your PIP coverage pays for medical expenses, lost wages, and other related costs. This allows you to get financial assistance immediately, even before the liability for the accident is established.
Here’s how the process generally works:
- File a PIP Claim with your Insurer: After the accident, you will submit a claim to your own insurance company. Your PIP insurance will cover a percentage of your medical expenses and lost wages, up to your policy limits (usually $10,000).
- Receive compensation for medical expenses: Your PIP insurance pays for necessary medical treatment after the accident. This includes doctor visits, hospital stays, physical therapy, and even prescription medication.
- Lost wages compensation: If your injuries prevent you from working, your PIP coverage will compensate you for a portion of the wages you lost due to the accident.
- Filing a third-party liability claim: In certain cases, if your injuries are severe enough, if you have exceeded the limits of your PIP coverage, or if another exception applies, you may be able to file a claim against the at-fault driver’s insurance for additional damages.
An attorney can evaluate your case and let you know what your best course of action is.
When Can You File a Lawsuit in Florida?
While Florida operates under a no-fault system, there are certain circumstances where you can step outside the system and file a lawsuit against the at-fault driver. Florida law allows individuals to pursue a third-party claim if certain criteria are met. You may file a lawsuit if:
- Your Injuries Are Severe: Florida law allows you to pursue a lawsuit if you sustain serious injuries in an accident. This can include permanent disability, disfigurement, or death. If you have injuries that meet this threshold, you may be able to seek compensation beyond the limits of your PIP coverage.
- Your Medical Expenses Exceed PIP Coverage: If your medical expenses surpass the $10,000 provided by your PIP insurance, you may be able to seek additional compensation from the at-fault driver’s insurance.
- There are Special Circumstances: If the accident involved specific circumstances, such as a driver operating under the influence or if the driver fled the scene of the accident, you may also have the grounds to file a lawsuit.
If you’re eligible to file a lawsuit, you may be able to seek full economic and non-economic damages for your injuries.
Contact an Orlando Car Accident Lawyer for a Free Consultation
If you’ve been involved in a car accident in Florida and need help understanding your legal rights and options, Norden Leacox Accident & Injury Law is here to assist. Our experienced Orlando car accident attorneys are committed to battling for your rights. We can help you recover the compensation you are entitled to.
Contact us today for a free, no-risk consultation to discuss your next steps at (407) 801-3000. Let us help you navigate the complex and challenging Florida no-fault system.