The answer is False: In Florida, No-Fault insurance is mandatory for owners of a vehicle. Here’s the brief explanation of the answer in details.
What is No-Fault Insurance?
Simply termed the No-fault insurance means that both the parties involved in an auto accident are entitled to valuable economic benefits from their insurance companies, no matter who caused the crash.
No fault insurance is basically defined as personal injury protection insurance (PIP). It means that an insurance contract is made which indemnifies the insured’s for their losses. This contract is not different than first-party coverage. It helps to cover the medical expenses of the person and its co-passengers.
It sets no-fault insurance. This means that irrespective of who is determined to be at fault in the accident, this insurance will reimburse the loss of income. It will regard both the parties equal.
That clearly states the term “no-fault” which is used in state/provincial automobile laws in the United States, Canada, and Australia. The policyholder is entitled to recovery of money and medical bills and other related expenses in this insurance through the civil justice system.
No fault insurance has a goal to lower premium costs. It does so by avoiding expensive litigation over the causes of the collision. The payments are quick for the injuries and loss of property. Even, it grants a fixed compensation for certain injuries irrespective of the unique aspects of the injury or the individual injured.
The proponents at the no-fault insurance argue that automobile collision is inevitable. They propose that the driver should not be punished for this.
But this way the reckless and negligent drivers are not punished and they get away easily. They are again free to create a nuisance on the road. Also, there is a claim that the states with no-fault insurance have the highest incidences of fraud also.
What does it cover?
Let us discuss the things that the no-fault insurance will cover. The policyholder and the co-passengers of the same vehicle are entitled to the following benefits:
1. Hospital and Medical bills
It reimburses all the hospital expenses which result from the accident. The medical bills are covered.
2. Medical mileage
It has provisions for reimbursement for the miles traveled to medical appointments.
3. Replacement services
It helps to reimburse for household chores, services, and child care. And other attendants that are asked for services are also covered.
4. Wage loss
It means that income losses which result from the inability to work, i.e. money not earned while recovering from the accident.
5. Funeral expenses
The expenses that take place in case of demise of your co-passenger will be taken care of.
6. Home modifications
The money required to make your home accessible in case of disabling injury is covered.
7. Vehicle modification
The money spent on making the vehicle disabled friendly is covered.
But it doesn’t cover theft, and the damage to the vehicle would also be covered by either the collision insurance or the other driver’s liability policy but not by the no-fault insurance.
Importance of no-fault insurance
No-Fault insurance is meant to reduce all legal and administrative fees. This fee is associated with insurance claims. Thus it reduces the premium costs also. In the no-fault insurance plan both the parties are covered equally.
So, long delays associated with getting the insurance cover is done away with. Despite determining which party is responsible, each party is covered fully in the policy limit.
The no-fault insurer will automatically pay for certain damages like medical expenses and travel expenses. The additional damages such as pain and suffering are also taken care of by paying for lost wages and other nurse facilities. Even extra out of pocket expenses are also reimbursed.
In the other system, the person met serious financial difficulties for himself and the family because of a long process of litigation. Hence, the main idea behind this no-fault insurance is the funds that are received immediately without waiting for the other party’s insurance to give them to you.
How does the claim work?
No-fault insurance system assumes that the driver is not allowed to make a claim for his suffering with his own vehicle insurance coverage. The insured is given a complete medical cover.
But if the person bears serious injuries which require extraordinary treatments and billing more than the limit, the driver can opt out of no-fault policy. Here it means that if the medical bills go above $3,000 or you suffer the broken bone.
If there is an accident in NY and the driver broke his leg which raised a sum of $7,500 in bills, and the other driver was at fault. So, to step out of no-fault insurance, the person must have met the “severe injury” threshold.
Under the state law, the accidents which include significant disfigurement or bone fracture comes under “serious injury”. Now, the person can file a 3rd-party liability claim. A personal lawsuit can directly be filed against the at the fault driver demanding compensation of all damages.
The no-fault vehicle insurance only applies to injuries that are caused due to an accident. For vehicle damages due to a car accident, the person is free to pursue the claim against the faulty driver.
In most of the cases of accidents, the driver is hesitant to give recorded statements to the insurance company of another party. While to get a claim in no-fault insurance the drivers need to co-operate with the insurance company.
They may be required to sit for a medical examination with the physician which is picked by the company. Failing to cooperate may lead to denial of the claim.
The vehicular accidents are inevitable so, one needs to be prepared for such incidents. The no-fault insurance cover safeguards you while within your own vehicle or another one.
Lawmakers have designed this type of auto insurance to help cut down legal cases between drivers. Anyone involved in an accident will be assisted with reasonable as well as necessary medical costs.
Thus, the person can make a list of all the car insurance quotes available and opt for the most affordable one.
- Introduction to No Fault Insurance: Taken from nationwide.com
- No Fault Insurance coverage: Taken from en.wikipedia.org
- Importance of No fault insurance: Taken from michiganautolaw.com
- Claiming no fault insurance: Taken from alllaw.com