Florida is one of 18 states that require motorists to purchase no-fault insurance, and yet even with 16 million drivers on the roads, many don’t really understand what this type of coverage entails. In fact there are plenty of incorrect assumptions and plain wrong proclamations made about it – which can lead to undesirable issues in the event that a claim needs to be made.
So with that in mind, let's clear the fog and break down some facts about the no-fault insurance as it exists in Florida at the moment.
No-fault insurance is basically designed to streamline the process of financial recovery after an auto accident—regardless of who caused it. Originally rolled out in the 1970s, it remains enforced to this day, although there was a brief dalliance in the late 2000s when it was put on hold. The fact that this decision was swiftly reversed shows just how effective it can be. Here's what it covers in Florida:
In spite of this, determining who's at fault in a car accident in Tampa or elsewhere in Florida may still play a role outside of no-fault claims. For example, if damages exceed policy limits or there are severe injuries involved, fault can influence legal proceedings against the responsible party.
There are some other mitigating circumstances and imperfectly understood aspects at play here, including:
Assumption is the mother of all mistakes, and even if you think you’re up to speed with the specifics of your mandatory no-fault insurance policy, knowing the following will put you in the strongest position:
Official stats show that there are around 400,000 crashes in Florida each year, resulting in 3,400 fatalities and over a quarter of a million injuries. This should be enough to convince drivers to go above and beyond the bare minimum of no-fault insurance to shield themselves from the fallout of an auto accident.
There’s also the issue of fraud that this type of cover creates, and it’s not just isolated to Florida; up in New York insurance premium price increases of over $200 million are associated with fraudulent claims on no-fault policies.
That said, information is empowering, so learning all you can about the policies you pick, and reading the small print as well as seeking legal representation after a crash will serve you well.
It doesn’t look like no-fault insurance will be going anywhere in the near future, in spite of calls for reform. Thus reading up on these basics and being savvy about your rights, as well as your obligations, is a must if you want to drive in Florida.
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