No-Fault Insurance Basics
There is no question insurance can be a confusing topic. It is made even more so by the fact that differing states frequently have different rules and regulations regarding insurance, in particular, auto insurance. While all states virtually make having auto liability insurance mandatory, even these “financial responsibility laws” can vary state to state.
Adding to the seemingly chaotic system is the fact that some states are considered “no-fault” states when it comes to vehicle insurance. Others have “choice” laws and still, others have a financial threshold where no-fault regulations take effect.
Florida is one of 12 states regarded as a “no-fault” insurance state, but what does that mean?
According to the non-profit Insurance Industry Institute, the term no-fault “applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so-called “limited tort” option.”
Just in case that didn’t make things crystal clear, in a no-fault state, drivers should file a claim with their own insurance company first, no matter who is at fault. That is why in no-fault states, drivers are required to purchase personal injury protection or PIP, as part of their automobile insurance policy. No-fault laws also provide that lawsuits may only be filed against another driver for severe pain and injuries if certain thresholds have been reached.
Yes, automobile insurance can be confusing. It is why some people only purchase the minimum legally required amount, even when it is not in their best interest. We think there’s a better way.
When you contact our independent agents for an automobile insurance quote, they will explain the options available to you and why they can be of benefit to you. Based on your needs and desires, they will seek out quotes from multiple companies to find a policy that delivers the protection you desire, at the best possible price. It is just part of why working with an independent agency is so valuable.
If you have questions about automobile insurance, would like a complimentary review or even just a quote, contact us. Let us put our experience and access to multiple companies to work for you!