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Florida’s No-Fault Insurance Law: When Does Fault Matter?

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Florida is one of the few states that practice what’s known as no-fault insurance law. No-fault insurance is a mandatory coverage type for all vehicle drivers in Florida. This law forces all drivers to have personal injury protection (PIP) insurance and property damage liability (PDI). The basic form of PIP and PDI should cover at least $10,000 for medical bills, lost wages, and more.

Regardless of who’s at fault, this automatic insurance policy can cover the damages associated with auto accidents. No-fault insurance simplifies or even eliminates many potential auto accident claims and can save many drivers from experiencing drawn-out legal battles for compensation. However, not everything about no-fault insurance is perfect. 

Specific issues with this mandatory system could negatively impact you, depending on your situation. Increased premiums, for instance, are one of the main issues related to no-fault insurance. You may even personally consider the no-fault insurance an unnecessary add-on if you’re migrating from another state to Florida.

How No-Fault Insurance Can Increase Your Premiums 

While no-fault insurance seems like a fair system that allows drivers to become worry-free about their damages after an accident, there is also a negative side to this system. Unless certain insurers provide your no-fault insurance, there’s always a chance of your premiums increasing after your accident. 

What this means is that the price of your no-fault insurance can steadily increase depending on the number of accidents you experience. Even if a careless driver caused your accident, you’re still at risk of paying more for your no-fault insurance. Insurance companies practice this to discourage reckless driving, but the action is sometimes unfair to customers.

Some no-fault insurance providers are notorious for having a large average increase for drivers who have been in accidents. Insurance companies have the potential to steadily raise your premiums for seemingly any reason. 

Although no-fault insurance can be beneficial in recovering damages from your auto accident, this mandatory policy can negatively impact your premiums. Some insurance companies have discovered how to exploit this system and will not hesitate to increase the price of your insurance at any chance they get. 

Can You Sue with No-Fault Insurance?

No-fault insurance exists to discourage legal lawsuits from occurring in the aftermath of a car accident. For this reason, it’s generally challenging to sue another driver in the aftermath of your Florida auto accident. When you suffer property damage and minor injuries, it’s unlikely you’ll have the opportunity to file a lawsuit against the other party. 

Severe injuries, on the other hand, are more likely to go to trial. Situations such as this happen when your damages outweigh the payout you received from the no-fault insurance. However, unless your injuries are serious, permanent, and/or scarring, the odds of your lawsuit going to trial may be slim. Speak to an injury lawyer to see what’s best for you. 

Reach Out to an Auto Accident Lawyer

Do you feel like Florida’s no-fault insurance did more harm than good after your car accident? The Law Offices of Casey D. Shomo wants to help you prove that your auto accident wasn’t your fault and decrease the chances of your insurer raising your premiums. 

You can speak with one of our car accident lawyers by calling 561-659-6366 or filling out the contact form below.