You might be wondering why you need car insurance in Florida. It can get a little confusing because Florida is a No Fault state, but many people don’t understand what this really means. While you can normally drive with little insurance, you should really consider getting the best insurance you can for your car just in case something happens.
What is No Fault?
Most people wonder why you need car insurance if Florida is a No Fault state. A No Fault state means that you don’t have to sue the other person for payments and compensation. Your insurance provider will pay you everything you need, and the other person’s provider will often pay them if you don’t have insurance. However, this is only the ideal situation.
The truth is that someone can sue you if you don’t have enough coverage, or if you don’t have any coverage at all. There are laws restricting what the other person can do, but there are still legal ramifications.
Another thing that most people don’t understand about the No Fault law is what it actually pays. It will often pay for all medical expenses, and generally any liability payments will also be paid to ensure the other person’s property gets fixed up (if needed). However, there is nothing in the No Fault law stating that the insurance company has to fix your property.
If you want your car fixed after the accident, then you need to opt for collision insurance. This ensures that your car will be repaired if your damages surpass the deductible, which is often $500.
Personal Injury Protection (PIP)
PIP is something you need when living in Florida according to the law. This is a type of insurance that pays for your personal medical expenses. According to most PIP policies, about 80% of your medical expenses will be covered, and 60% of your lost wages will be paid directly to you. The average policy gives you $10,000 in coverage, and this pays regardless of fault.
However, you should also get Medpay to cover the extra 20% of the medical bills. This can be useful, but it may not be necessary if you already have health insurance.
You absolutely need car insurance in Florida if you want to avoid any court battles or legal suits. The monthly premiums typically aren’t that bad, and it will often be very useful if an accident ever does happen.