What is No-Fault Insurance

Author: Hanson & Hanson/Wednesday, April 9, 2014/Categories: Auto Accidents

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What is No-Fault Insurance in Florida?

The laws of the state in which the accident occurs determine who pays for the damages from an automobile accident. Basically, in a no-fault insurance state, like Florida, fault does not determine which insurance company pays for the losses. Instead, each driver is legally required to submit a claim to his or her own insurance company.

How no-fault insurance works

"No-fault insurance" describes any automobile insurance system that requires drivers to carry insurance for their own protection and limits their ability to sue other drivers for damages. In an accident under a no-fault system, your insurance company will pay for a certain percentage of your damages up to your limits, no matter who was at fault for the accident. Other drivers involved in the accident are covered by their own insurance policies.

Under a pure no-fault system, drivers would be entirely covered by their own policies and could never sue any other driver for damages, but no state currently uses a pure no-fault system. All no-fault states use parts of the no-fault system and parts of the standard-liability system, under which a party is responsible for the cost of damages he or she causes, so lawsuits are permitted under some circumstances in all states.

Choice no-fault

Choice no-fault insurance laws create two classes of insured drivers in some states by retaining parts of both the no-fault and the traditional fault-based systems. Pennsylvania and New Jersey have implemented versions of choice no-fault laws. Under a choice system, drivers choose whether they want to be insured under a no-fault plan or retain some traditional tort rights similar to modified no-fault. For example, if a driver chooses a pure no-fault plan, he or she may not be able to sue negligent drivers for non-economic damages, but he is also immune from such suits. However, if the driver retains traditional personal injury suit rights, he or she can sue other drivers who have also chosen to retain their tort rights, but, in exchange, they can sue him or her. An experienced attorney can help you work through the complicated issues regarding fault, whether you are in a fault or a no-fault state.

A no fault insurance policy

If you live in a no-fault state, the no-fault part of your auto insurance policy is usually called personal injury protection (PIP). Different states' PIP packages cover different expenses, but benefits generally include most injury-related expenses, including a percentage of medical costs, lost wages, reimbursement for yard work and housework while you are too injured to do it yourself, funeral expenses, and death benefits. Some damages, such as pain, suffering, emotional distress and inconvenience, are generally not covered by no-fault insurance coverage. Also, medical expenses or lost income above any established limits are not covered, and other insurance coverage is typically needed to cover physical damage to vehicles.

Orlando No-Fault Insurance Attorneys

For more information about Orlando and Central Florida No-Fault Insurance contact Hanson & Hanson, P.A. at 407-872-1212 today for your free initial consultation.

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