How Does a No-Fault Accident Work?

Florida is a No-Fault Auto Insurance State

Unlike many others, Florida is a no-fault automobile insurance state. This means that all drivers are required by law to carry personal injury protection (PIP) insurance and other coverages. This ensures that certain costs incurred as a result of an accident are covered, no matter who is at fault.

What is a No-Fault Accident?

No-fault means the drivers involved in the accident won’t necessarily need to exchange insurance information. Also, they will not need to worry about filing claims through each other’s policies. However, a drawback is that this places additional costs on every driver, regardless of who caused the wreck. It also leaves the innocent party with the burden of having to use his or her insurance anyway if the person at fault does not carry enough insurance protection to pay their medical and/or property damages. 

In contrast, most states require insurance protection that places certain liabilities of an accident squarely on the person who was at fault, with payouts varying by state.

Florida Auto Insurance Requirements

According to the Florida Highway Safety and Motor Vehicles, the following guidelines must be in place before a car may be registered with the state.

  • You must have proof of minimum coverage of $10,000 in personal injury protection (PIP) insurance. This will cover 80 percent of medical expenses up to the policy amount for covered injuries, no matter who caused the crash.
  • You must have proof of minimum coverage of $10,000 in property damage liability (PDL) coverage. This pays for damage to another person’s property caused by you or another driver using your insured vehicle.
  • Continuous insurance coverage must be kept in place even if the vehicle is inoperable or never driven.
  • Your auto insurance policy must be purchased from an insurance carrier licensed to do business in Florida
  • You must maintain Florida insurance coverage continuously throughout the registration period. This is required no matter where the vehicle is located (such as members of the military). 

It is illegal to drive without automobile insurance in Florida. Failure to maintain the required coverage may lead to suspension of your driver’s license/registration. Reinstatement fees cost up to $500.

If you would like to read more about how no-fault automobile insurance works, download the Florida Department of Financial Services: Automobile Mobile Insurance Toolkit for more details. 

Young Drivers

With Florida Farm Bureau insurance, a first-time teenage driver can be added to a parent or guardian’s car insurance policy, or they may take out their own policy. That driver may then remain on your policy as long as they share your residential address, no matter their age.

Get High Quality Auto Insurance from Florida Farm Bureau Insurance

Before you leave the house, make sure that you’re insured against all accidents and against uninsured motorists by insuring your vehicle with Farm Bureau Insurance. Get a quote from a local agent by using our Agent Finder.