An auto accident can be a very stressful, scary, and often times a very traumatic event. Individuals who have been involved in these unfortunate situations are typically all too familiar with the aggravating and time consuming phone calls to the insurance companies and adjustors. This article should help alleviate some of the confusion and anxiety individuals may face in asserting claims for protection and assistance from insurance companies following an accident.

After an accident, many individuals may be concerned that their automobile insurance is insufficient to protect against the severity of personal or property damages. To ease these concerns and help accident victims better prepare for this type of situation, it is imperative for an individual to understand how insurance works within the state of Florida. There are three types of automobile insurance systems within the United States. The first system is called an at-fault system. Under this arrangement, the at-fault driver’s insurance policy is responsible for all injuries and financial losses resulting from an accident. The second insurance system is called the choice no-fault system. Under this arrangement, each party may choose either an at-fault policy or a no-fault policy. The third arrangement of automobile insurance is the no-fault system. Florida maintains a form of the no-fault automobile insurance system.

Under Florida’s no-fault insurance arrangement, often referred to as personal injury protection (PIP), all owners or registrants of a motor vehicle must carry medical, surgical, funeral, and disability insurance. This insurance is payable regardless of who was at-fault in the accident. Under this insurance structure, that at-fault driver, and his or her insurance company, is required to pay any medical expenses that exceed the PIP coverage within the injured driver’s policy. In a situation where both drivers in an accident are at-fault, Florida has adopted the standard of pure comparative negligence. Overall, this standard entitles both drivers to claim a portion of the total amount of recovery. The insurance companies, however, will attribute the appropriate percentage of fault for each driver and split each driver’s final award based on this finding.

In general, the state of Florida requires automobile insurance for those individuals who own a vehicle with at least four wheels and intend to register that vehicle within the state. In Florida, each person must carry at least $10,000 of personal injury protection (PIP) and $10,000 in property damage liability. Additionally, Florida law mandates that a company licensed by the Florida Department of Financial Services issue all insurance policies.

This article is an excerpt from “Your Guide to Understanding Florida Personal Injury Law” by Samuel Bearman & Dana Oberhausen