A Guide to Florida's Auto Liability Insurance Regulations

Florida's no-fault and PIP insurance law is designed to give protection on a wider scale and reduce the number of liability suits that can be filed. It is a relatively complicated system that attempts to fix what sounds like a simple problem. The PIP portion of the law stands for "personal injury protection."

Florida law requires that everyone carries Florida-based car insurance.

The liability portion of this insurance must include minimum liability coverage for $10,000 each on property damage and personal injury protection. It is not a true no-fault insurance because there are times when fault is assessed and the at-fault driver's insurance must pay for the other person's damage. Most of the time, it is a case of each one in the accident taking care of his or her respective loss. The liabilities can come with or without deductibles being applied. The primary focus of this law is to cover the medical and other person losses associated with an automobile accident.

The payment schedule is largely preset by state statute.

The insurance claims are handled based on a scale. Actual claim numbers may vary a little depending on the amount of insurance purchased and the precise amount of the deductible. The insurance will generally pay 80% of all medical costs up to $10,000. This is paid at the rate of 200% or the Medicare rate. The policy provides for a $5,000 emergency room and in-patient physician visits. It includes disability payments of 60% to cover loss of income. The insured can collect 100% of replacement services like yard work, housekeeping and child care. It includes a $5,000 death benefit.

Suits may be filed for the following reasons with some qualifications.

A law suit can be brought to get paid for permanent and significant loss of functions. The same is true for permanent injuries, not including scarring and disfigurement. Permanent scarring and disfigurement are listed as a separate item for a suit. Families can sue for the death of a loved one.

Personal injury protection provides benefits for more than just the driver.

The protection extends to anyone who resides within the insured household. Primarily, this applies only to those who are related to the insured by blood. The law gives a lot of room to the interpretation of the insurance coverage. Overall, it is decent insurance and fills in some of the gaps that cause issues in other policies from other states that are not considered no-fault.

Sources:

http://www.genetlaw.com/auto_accidents/florida_no_fault_insurance.html

http://www.floridanofaultinsurance.info/search/Florida+PIP