How Florida No-Fault Auto Insurance Laws Work

By Robert Fredricks Posted in Car Insurance News



No-fault laws were enacted to reduce insurance premium which were inflated because the fear of litigation tied to car accidents. Only twelve states have no-fault laws on the books. For insurance purposes no-fault does not mean that no one is responsible for a car accident. It simply means that there is a limit on what a driver can sue another driver’s insurance company for.

What Are No-Fault Laws

There are several different levels of no-fault laws. Most states have what is called a qualitative threshold, which means that for certain injuries (disfigurement or permanent disability) or death that the driver can pursue litigation against the insurance company up to a certain amount. This helps prevent frivolous lawsuits and over inflation of damages when litigating.

Other states have stricter no-fault laws which only allow victims to sue for the exact amount of damages or injury not covered by the insurance company but nothing more (no lawsuits for “emotional distress”).

Florida’s No Fault Law

Florida falls under the qualitative threshold with its no-fault laws. It has also experimented with repealing the law and then reinstating it when a flood of litigation came in during the tort system. A tort system is a more open system that allows for just about any lawsuit. In states where that do not have no-fault laws and operate under a tort system, insurance premiums tend to be higher because the risk of a lawsuit is greater because there are few restrictions.

In states like Florida that have no fault laws on the books, insurance premiums tend to be lower because it is more difficult to sue in the wake of an accident. No fault does not mean that no one is ever at fault in an accident, it just means that you can’t sue a driver or an insurance company for a ridiculous sum of money just┬ábecause they rear ended you and now you have neck pain.

On the flip side, it is more difficult to sue under these conditions when real permanent damage has occurred.

Related posts:

  1. New Minimum Florida State Requirements For Jacksonville Auto Insurance
  2. Do You Need Car Insurance In A No Fault State?
  3. How Much Car Insurance Do I Need?
  4. What Does No-Fault Insurance Mean And Work?
  5. New Minimum Michigan State Requirements For Ann Arbor Car Insurance






One Response to “How Florida No-Fault Auto Insurance Laws Work”

  1. JJ says:

    What are you smoking? Florida has some of the highest auto insurance rates in the country all due to PIP and the fraud that comes with it.

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