Who Pays for Car Damage in a No-Fault State?

In no-fault states, Property Damage Liability (PDL) insurance covers the damage you cause to another person’s vehicle in the event of an accident.

According to the Florida Highway Safety and Motor Vehicles (FLHSMV), Florida requires drivers to carry a minimum of $10,000 in PDL.

Additionally, Personal Injury Protection (PIP) insurance pays for each driver’s injuries after a collision. If your injuries meet a certain threshold, you can file a third-party liability claim with the responsible driver’s insurance provider. You can also file a personal injury lawsuit against the responsible driver themselves.

Does Personal Injury Protection Cover Car Damages?

In Florida, PIP, which is also known as “no-fault insurance,” is an insurance policy that covers 80% of the medical expenses of injured drivers after a car crash, regardless of who was responsible for the accident. You can also receive up to $10,000 in coverage for injuries. This amount may vary between each no-fault state, as well as general policy fluctuations.

Under Florida Statutes § 627.736, a minimum of $10,000 in PIP is required to register four-wheeled automobiles in Florida. The policy, however, does not cover car damage.

Drivers will need collision insurance to cover damages to their car after an accident. Conversely, if they are responsible for the accident, they will use their Property Damage Liability (PDL) insurance to cover damages to the other driver’s vehicle.

What Is Property Damage Liability Insurance?

As previously stated, property damage liability insurance is a policy that covers the damage caused to the other driver’s automobile if you are responsible for the collision. A minimum of $10,000 of this policy is required along with PIP to register a vehicle in Florida.

Suppose the responsible party’s current PDL is not enough to completely cover the other driver’s expenses, then, depending on their other insurance policies, they may have to pay the remaining amount out-of-pocket. The victim would then have to go through their own collision coverage to repair their vehicle or file a lawsuit against the other driver if they were at fault.

What If the At-Fault Party Doesn’t Have Insurance?

If the liable driver does not have insurance, the victim can look to their insurance policies for coverage, when applicable. In some scenarios, the victim can still pursue damages through a property damage claim.

What is Collision Insurance?

Collision insurance provides coverage in the event of any damage done to your car after any sort of crash, whether or not you were the cause of the collision.

Unlike personal injury protection or property damage liability, it is not mandatory to have collision coverage in the state of Florida. However, this coverage can help you avoid potential out-of-pocket expenses for your vehicle after a crash.

How to Obtain Collision Insurance

Collision insurance can sometimes be a requirement if you are purchasing your car under a lease, but it is an otherwise optional coverage that you should consider when purchasing a car. Collision coverage is available from your auto insurance provider, and you will pay a monthly premium for the insurance.

With this coverage, if you are in any sort of accident, regardless of fault, you will pay a deductible, and the insurance company will cover the rest of the costs of your car damages.

Lower deductibles will typically be more costly per month, but pricing overall will depend on factors such as your driver history and the current value of your vehicle. Regardless of pricing, however, having this coverage can potentially save you thousands of dollars in expenses.

Filing a Property Damage Claim

Depending on the circumstances of a crash, you may want to file a property damage claim with your insurance company.

During this process, you’ll be working with an insurance adjuster who will collect information on your case to evaluate and determine the amount of coverage you should be provided. If your damages exceed your coverage, you can go through your uninsured/underinsured coverage if you have it or file a lawsuit against the at-fault driver.

It should be noted that a property damage claim covers vehicular damage only. If injuries are a factor, you will need to file a personal injury claim separately.

Filing a Personal Injury Claim

In addition to car damages, you may have sustained injuries from the car crash caused by the reckless driver. If this is the case, then we encourage you to file a personal injury claim.

Depending on your injuries, your PIP may not be able to cover all of your medical expenses. If you suffered serious injuries that meet the state’s threshold, you can file a third-party liability claim to seek your losses.

Let’s Get to Work on Your No-Fault Claim in Florida

Whether you’re filing a claim against someone responsible for your accident or negotiating with an insurance company to pay for your expenses, you’ll want experienced legal help that knows how to get the amount you need for your troubles.

Contact us today at Andrew Pickett Law, PLLC for a free evaluation, and we’ll get to work on your case right away.

Differences Between No-Fault and At-Fault States

There are differences between no-fault and at-fault states. It’s crucial to know the definitions of no-fault and at-fault insurance.

Definition of No-Fault Insurance

Some states such as Florida and New York use no-fault laws for car accidents. This means drivers must hold certain coverage with their auto insurance policies to cover the costs of medical expenses and other damages. According to Florida Statute 627.7407, this includes $10,000 in personal injury protection (PIP) and property damage liability (PDL) to pay regardless of who’s at fault.

According to the New York State Department of Financial Services, $50,000 is required for PIP, and uninsured motorist coverage protects against hit-and-run collisions and damages to uninsured vehicles.

Definition of At-Fault Insurance

Thirty-eight states, including California and Georgia, follow fault laws for car accidents. Unlike no-fault, in these states, the driver responsible for a crash must compensate for any damages they cause. According to California Legislature, the driver at fault for an accident must exchange information with the other party or notify them and pay for damages.

According to Georgia Rule 120-2-28, drivers must have the required minimum insurance coverage. They can also acquire add-on options such as medical payments and uninsured motorist coverage.

How Insurance Claims Work in No-Fault States

It’s important to understand how insurance claims work in no-fault states. There are criteria for filing claims for personal injuries and vehicle damage.

Filing Claims for Personal Injuries

To file claims for personal injury in no-fault states, you must use your auto insurance. Report the accident immediately and seek medical attention. A written claim must be submitted along with your medical records and expenses. Some states require you to seek care within a specific time frame. For example, Florida law states you must do this within 14 days of an accident to secure PIP benefits.

Filing Claims for Vehicle Damage

Depending on the circumstances, you can file a claim for vehicle damage in different ways. It can be through your collision coverage or PDL, or you can file against the other driver’s liability insurance.

Coverage for Vehicle Damage in No-Fault States

You can obtain coverage for vehicle damage in no-fault states. It’s crucial to know how to utilize collision coverage, insurance policies, and the impact of the at-fault driver’s insurance.

Utilizing Collision Coverage

Collision coverage is an option to cover damage to your vehicle. It’s an optional add-on that compensates you regardless of whether you or another driver is at fault for an accident.

Insurance Policies

Vehicle damage is not always covered by no-fault insurance. In that situation, liability coverage from your policy or another driver’s insurance would apply.

The Impact of the At-Fault Driver’s Insurance

When a driver is at fault for a car accident, they can experience certain impacts. One is that their insurance premiums increase. In some cases, this may be significant, such as after a severe crash. The driver can also face penalties, especially if someone is seriously injured or killed during an accident. In the worst instances, the insurance company could drop their coverage.

Scenarios Affecting Liability and Compensation

Certain scenarios affect liability and compensation. They include single-vehicle and multi-party accidents.

Single-Vehicle Accidents

Drivers are liable in single-vehicle accidents, so they must cover any damages. Rarely, another party may be responsible. For example, an accident occurs due to a faulty car part. This would make the manufacturer liable.

Multi-Party Accidents

Establishing liability in multi-party accidents is trickier. Depending on the circumstances, each driver or a few may be responsible. Liable parties may have different levels of fault rather than sharing it equally.

Negligence in No-Fault States

It helps to know what to expect when accidents caused by negligence occur in no-fault states. You must understand how it influences claims and its consequences on compensation.

How Negligence Influences Claims

No-fault states require drivers to use their insurance to cover damages from accidents. However, this means some may not recover enough compensation from their policies to pay for their medical expenses, lost wages, and other damages. In that situation, the plaintiff would have to file a lawsuit.

Consequences of Negligence on Compensation

The no-fault system is sometimes insufficient in providing satisfactory compensation to injured parties. In cases involving serious injuries, insurance may have limitations. The person could file a lawsuit against the other party for the remainder of their due compensation.

Need Free Legal Help in Florida?

If you’re facing a car accident claim or need help with a personal injury case in Florida, we specialize in providing legal assistance. Contact us today for a free evaluation and we’ll get to work on your case right away.

Frequently Asked Questions

 

How Does Insurance Work When it’s Not Your Fault?

When you’re in a car accident that’s not your fault, the other driver’s insurance pays for damages. This requires you to file a claim with their insurer.

What Is the Advantage of a No-Fault System for States?

The no-fault system makes the situation fairer because insurance compensates parties involved in accidents. This reduces the number of lawsuits filed.

Does No-Fault Apply to Car Damage?

It depends on the state. Some allow no-fault insurance to cover car damage while others do not.
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