For the past 50 years, Florida law has required that drivers carry personal injury protection (PIP) insurance. PIP is no-fault insurance that provides coverage for medical expenses and related losses no matter who was at fault in an auto accident.
The House of Representatives in Florida recently successfully passed a bill that aims to eliminate PIP insurance and switch to a fault-based system, which many other states have. The Senate has yet to pass a similar bill on the matter, so it is still unclear whether Floridians will see the end of no-fault auto insurance. However, we will look at the benefits and drawbacks of no-fault and fault insurance below.
No-Fault Insurance vs. Fault Insurance
With a no-fault system, an insurance company does not have to take the time to investigate the cause of an accident before it provides benefits for your medical expenses and losses. This can be helpful, as you have immediate coverage to receive treatment after an accident.
However, you are required to carry just $10,000 worth of PIP coverage, and many people carry only the minimum. This means that you may run into problems if your losses exceed your policy limit. Part of the no-fault system is a restriction on personal injury lawsuits unless you have particularly severe injuries. If your injuries do not meet the criteria for “serious” but your expenses exceed your PIP policy, you may have no options left to cover your medical bills.
With fault-based insurance, you must file a claim with the insurance company of the party who caused your accident. It can take time to prove liability, which can cause issues in the time following the crash. However, if the insurance company refuses to cover all your losses, you do have the legal right to file a lawsuit to pursue the additional compensation you deserve from any negligent parties.
Discuss Your Case with a Gainesville Auto Accident Attorney Today
At Meldon Law, we will keep you informed of any new developments in the law, and we are dedicated to helping auto accident victims in Gainesville recover for their losses. Please call 800-373-8000 for a free consultation.