Is Florida a no-fault state for car insurance?

Motor vehicle insurance usually falls into one of two categories. Liability insurance protects people from property damage and injuries that result from a crash they cause. No-fault coverage protects drivers and the passengers of their vehicles from losses related to a crash, regardless of who caused the Collision.

Florida’s insurance program has long required both kinds of coverage. People need to carry no-fault personal injury protection (PIP) coverage as well as liability coverage for property damage. However, depending on whether the governor signs a new bill recently sent to him, that could change on January 1st, 2022.

How did lawmakers seek to change Florida’s insurance system?

Currently, everyone who registers a vehicle in Florida needs to pay for both liability coverage and no-fault PIP coverage. Lawmakers, concerned about the expense involved with such Insurance, have moved to update Florida’s car insurance system.

They passed a bill eliminating the requirement for PIP coverage and replacing it instead with an obligation for people to carry liability coverage in case they cause a collision that results in injury or death. Lawmakers have indicated that they expect the system could reduce insurance costs for many drivers, although opponents to the bill noted that there may not be enough research to show that cost will actually drop for most drivers.

While it was not unanimous, the bill did pass with a strong showing of support and has gone on to the governor for a signature. If he chooses not to sign it into law, that could delay or end the attempt to eliminate no-fault coverage in Florida.

 At least for the rest of 2021, Florida requires no-fault coverage

For at least the next six months, drivers can depend on the PIP coverage from their own policy to cover some of the costs they incur because of a crash-related injury. Drivers can review and expand their insurance coverage at any time, and many people may find that they need to select slightly different coverage the next time that they renew their policy in Florida.

Understanding how insurance works makes it easier to file an insurance claim after a serious car crash.