Auto insurance laws tend to vary from state to state and we’re not only talking about minimum coverage requirements. Some states follow at-fault insurance laws, while others use a no-fault system. Florida is a no-fault insurance state and this can both simplify and complicate the claim process.
You may also be wondering about any potential exceptions to Florida’s no-fault rule. We’re taking a look at the possible exemptions, along with how to navigate an accident claim in a no-fault insurance state.
What is No-Fault Insurance?
The premise behind no-fault insurance is fairly simple, along with the reason some states follow the rule. The goal is to make the claim process easier to navigate for accident victims. The rule can also speed up the time it takes to receive a settlement check.
Everyone involved in the accident, regardless of fault, files a claim with their insurance provider. Your Personal Injury Protection (PIP) and Property Damage Liability (POL) insurance provider is responsible for covering your damages.
Your insurance provider covers damages like medical expenses, property repair/replacement costs, and lost current income. You can receive compensation up to the policy’s limit or 80% of your claim’s value.
Unfortunately, no-fault insurance doesn’t cover all of your economic damages. If you’re wondering about non-economic damages, these losses aren’t covered by either PIP or POL insurance.
To recover any losses not eligible under your insurance policy, you need to file a claim against the at-fault driver. This claim is only for the losses you haven’t received compensation for like your non-economic damages and the remaining 20% of your economic damages.
So, if your medical expenses are around $100,000 and your insurance payout leaves you with a $20,000 bill, your claim against the other driver will be for the remaining $20,000 and not your entire medical costs.
Are There Exceptions to No-Fault Accident Insurance
Even though no-fault insurance laws are usually designed to apply to everyone, there can be a few possible exceptions. Before you get excited about potentially receiving more in compensation, take a deep breath.
An exception to no-fault insurance laws doesn’t necessarily increase compensation amounts. However, it can mean one less claim for you to file. Instead of filing a claim under your auto insurance policy and one for the remaining balance with the other driver, you may be able to go straight to the at-fault party’s provider. So, when don’t no-fault insurance rules apply? Some possible exemptions can include:
- The vehicle accident occurred out of state. No-fault insurance laws are state-specific. This means that if you live in Florida and your vehicle accident occurs in Texas, you follow the Lone Star state’s insurance laws. Since Texas is an at-fault insurance state, you file a compensation claim against the other driver’s insurance provider. If the other driver isn’t carrying insurance, you can file a claim with your PIP/POL provider. However, the law doesn’t require your insurance to cover out-of-state accidents.
- Uninsured drivers. Even though Florida has laws requiring all drivers to carry at least the state’s minimum insurance requirements, not all do. Some drivers may not be able to afford insurance premiums, others may not have gotten around to contacting an agent. Whatever the reason, the other involved driver doesn’t have auto insurance. This effectively exempts them from no-fault insurance rules. However, the driver will probably face fines and other potential penalties for operating a motor vehicle without insurance. In this scenario, you’re probably stuck with any damages not covered by your PIP policy. If you’re carrying uninsured motorist protection, your policy may cover any remaining damages.
Another potential exemption to no-fault insurance laws can be if you suffer permanent injuries. This typically includes injuries like permanent scarring or disfigurement like an amputation.
The possible exception to Florida’s insurance rule can also apply if your medical expenses left over from your PIP coverage equal $10,000 or higher. If this applies, you should be able to file a claim against the other involved driver.
Filing an Accident Claim in a No-Fault Insurance State
The steps for filing a claim after a vehicle accident in Florida are essentially the same as if you’re in an at-fault state. The primary difference is who you file the initial claim with. Remember, you start seeking compensation through your PIP provider.
If your remaining damages are at least $10,000, you can file a lawsuit against the other driver for your remaining losses.
Report the Accident
Regardless of who you’re filing the claim with, you must prove the accident occurred. You can’t just call the insurance company and request compensation for an accident you promise happened.
You’re going to need to submit a copy of your accident report. After reporting the incident, the authorities will investigate the accident scene, assess fault, and issue an official report. Most accident reports are ready for pickup in about 10 business days.
Gather Your Evidence
If decluttering your home is on your to-do list, put it off until after settling your accident claim. You don’t want to accidentally throw anything away that can help support your claim. What do you want to save?
You’re going to want to keep all paperwork relating to the accident, and this includes all of your medical records along with any property repair/replacement estimates, pay stubs, and other financial states like bills and receipts.
Some accidents result in significant injuries. If this applies to your accident, don’t worry about documenting the scene. If you’re able, try to get some pictures of your property damage. Get contact information from any witnesses, and jot down the location of any surveillance and traffic cameras. You may also want to take some pictures of any visible injuries.
Schedule a Legal Appointment Today
Even if you’re only planning on filing a claim with your PIP provider, it’s still a good idea to discuss your case with an experienced Florida personal injury attorney.
Whether it’s helping to ensure you’re receiving fair compensation from your insurance company or getting ready to file a lawsuit, your accident attorney can help you navigate the often confusing legal process.
