No-Fault Auto Insurance in Florida

Let’s take a step back and define what no-fault auto insurance is in general.

What Is No-Fault Insurance?

No-fault insurance means that each party covers their own medical costs, regardless of whose fault the accident was. Coverage of these costs is also called personal injury protection, or PIP. In Florida, PIP coverage pays only for the first party, the person on the insurance policy. The at-fault driver will still need to pay for the other party’s property damage, just not their bodily injuries.

How Does No-Fault Insurance Work?

Say you get into an accident and it’s your fault. You and the other party would both contact your own insurance providers to cover your medical costs (first-party claims). However, you’d still be on the hook to pay for the other party’s property damage, so that party would file a claim with your insurance provider (a third-party claim). If the claim wasn’t your fault, you’d file a third-party insurance claim with the other party’s provider.

What It Covers

• Your medical payments
• The not-at-fault party’s property damage
• Lost wages
• Other economic damages

What It Doesn’t Cover

• Car theft
• Car vandalism
• Damage from weather-related incidents like sinkholes, hail, and floods
• Damage from potholes

No-fault insurance laws in Florida have more negatives than positives for all drivers.

When it comes to Florida’s no-fault auto insurance laws, we have some good news followed by some bad news. In April 2021, the Florida Senate passed legislation that would repeal no-fault legislation. Specifically, this is what the legislation would have done:

• All drivers would be required to have a minimum bodily injury liability coverage of $25,000 per person and $50,000 per accident.
• Drivers would not be required to have medical payments coverage or PIP.

In other words, this legislation would have changed Florida from a no-fault state to an at-fault state.⁴

But notice that we’re writing in the conditional tense. That’s because, in June 2021, Florida’s Gov. Ron DeSantis rejected this bill, keeping Florida as a no-fault system.⁵ So don’t expect lower prices for auto insurance anytime soon.

So you got into an accident and filed a PIP claim, and your insurance provider denied it. There are a few possible reasons for this denial.

• Nonpayment: If you’ve missed paying your premiums, your insurance provider has 10 days prior to the effective date to notify you of a midterm cancellation. Canceling your insurance means the company will not cover your injuries or medical treatment (PIP coverage). To reinstate your auto insurance, you’ll typically need to cover the missed payments. But even if you reinstate your policy, it won’t be retroactive, so you won’t get that injury covered. No wonder so many companies give auto insurance discounts to those who enroll in automatic billing!
• Lack of evidence: If you didn’t file a police report for your insurance claim or provide sufficient evidence, your insurance company could deny coverage.
• Fraud: If your insurance company thinks your claim is fraudulent, it can deny coverage. That’s why it’s important to provide only accurate information for your medical costs and mileage reimbursements to and from medical care.
• Failure to seek medical care in time: If you didn’t seek medical care within 14 days of your accident, your insurance company can deny your claim under Florida Statute 627.736.

If you’re seeking car insurance in Florida for the first time, familiarize yourself with Florida’s minimum car insurance requirements:

• Medical payments coverage of at least $10,000 per person and $10,000 per accident
• Property damage coverage of at least $10,000⁶

Florida isn’t the only no-fault state in the U.S. — far from it. Here are the other states with no-fault auto insurance laws:

• Arkansas
• Delaware
• Hawaii
• Kansas
• Massachusetts
• Michigan
• Minnesota
• New York
• North Dakota
• Oregon
• Texas
• Utah

In the following states, drivers can choose between at-fault and no-fault coverage:

• Pennsylvania
• Kentucky
• New Jersey

If you want even more information about Florida car insurance, read about cheap car insurance in Florida, auto insurance for Florida seniors, or whether you need insurance to register a car in Florida.

Although Florida’s minimum auto insurance requirements are relatively minimal for the U.S., it’s still one of the most expensive states for auto insurance. That’s why it pays to do your research before you pay for a policy.