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What Is the Difference Between No-Fault and Fault Insurance?

Everyone knows that they need to have car insurance if they drive a car. However, many may not be aware that the state they live in dictates the kind of car insurance coverage they have access to. 

Terms like fault, no-fault, and contributory negligence can sound confusing to the beginner, but in reality, they all come down to who can be held liable for your losses in a car accident. So, what is the difference between no-fault and fault insurance? Read on to find out. 

No-Fault versus Fault Insurance: Which Matters Where You Live?

Owning a vehicle and driving the open road is a core idea behind modern American life. And in most places outside of major metropolitan areas with mass public transport, living without a car can even be impracticable. 

Despite this shared reliance on cars, the finer details of Americans’ auto insurance options can change radically by state. The biggest overarching difference, however, is the difference between no-fault and fault insurance. 

  • No-Fault Insurance – A type of insurance that guarantees compensation for people in the event of an accident, regardless of whose fault it was. Drivers can refer to their own insurance policies to pay off things like medical bills and temporary disability. Intended to work for minor accidents only. Only a handful of states use no-fault insurance, of which Florida is one. 

  • Fault Insurance –  Under this system, the person or entity who was responsible for the accident can be held liable for damages in a civil action. Unlike no-fault insurance, however, your own insurer will not cover a portion of your expenses by default. 

In addition to no-fault and fault insurance, some states hold a comparative view of responsibility, meaning both parties could be found responsible for having caused an accident. In states that observe contributory negligence, however, being found even one percent responsible could bar you from recovering damages from the other party. 

Personal Injury Protection Insurance in Florida 

As a no-fault state, Florida’s personal injury protection (PIP) covers up to eighty percent of your medical expenses and sixty percent of your lost salary, but only up to $10,000. If your damages exceed $10,000 from a serious accident, you may be able to file a claim against the responsible party. 

Do You Need a Car Accident Lawyer?

Navigating the nuances of car accident insurance and third-party lawsuits can be difficult. Fortunately, if you’ve been injured in an accident, an experienced car accident lawyer can offer you a free consultation to help you get started. 

Contact a Car Accident Attorney in Florida

When your injuries cause significant losses, you’ll want to step outside the PIP system to recover damages from the at-fault party. At Gross & Schuster, P.A., we’re backed by the resources that decades of experience in car accident disputes brings. Our firm will work doggedly to help you recover the maximum possible settlement, risk-free. 

Call 850-434-3333 or fill out the form below to contact a car accident lawyer from Gross & Schuster, P.A. 

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