What You Need to Know About No-Fault Insurance

Most drivers are familiar with at-fault insurance, which evaluates accident liability based on who caused the accident. No-fault car insurance has been available since 1970, yet few drivers know much about it. However, it is important to know more, as Florida is a no-fault insurance state. Here are the most common questions that arise about no-fault car insurance in Tampa, FL.

What is no-fault insurance?

No-fault insurance was implemented to prevent drawn-out court battles and long discussions on liability. In this system, when there is an accident, your insurance provider automatically pays for particular damages, no matter who caused the accident.

It exists as an option in 12 states, including Florida. In other states, no-fault insurance is up to the driver or not offered as an option at all.

What does no-fault insurance cover?

No-fault insurance covers medical expenses from accident injuries. Basically, every driver is required to carry personal injury protection (PIP), which is specifically for medical treatment. PIP pays the treatment provider directly or reimburses your regular health insurance provider. It covers medical bills, insurance deductibles, childcare expenses, lost income and funeral expenses. You can check your insurance policy to be sure you have it, and if not, contact your agent to add the coverage or adjust the limits.

However, no-fault insurance does not cover bodily damage, theft, weather damage or other property damage. Those damages are still assessed through a fault and tort system. If another driver crashes into you and damages your car, you still need to file a claim through that driver’s liability coverage.

Will a no-fault accident appear on my driving record?

Normally, unless the police are called to the scene of the accident, it will not appear on your record. There are some circumstances like multiple-vehicle accidents or serious injuries where it will be on your record, especially if it involved a driver under the influence.

What if the other driver does not carry insurance?

When both drivers are insured, they file claims with their own insurance companies for medical and against the other company for property damage. This scenario is vastly more complicated when one of the drivers is not insured.

If you are in an accident with an uninsured or underinsured driver, you must file a claim with your own insurance company. Hopefully, you carry underinsured or uninsured coverage for these instances. If you do not have this coverage, you’ll likely have to pursue damages in civil court, which is a long and lengthy process.

Basically, if you need to reduce your insurance rates, skimp on deductibles, not on this coverage. It can prove essential in no-fault states like Florida and keep you from falling victim to another person’s carelessness twice.

No-fault insurance in Tampa, FL can save you money and extra trouble if you have an accident. At Affordable Car Insurance Tampa, we find affordable no-fault insurance options for you, whether you need SR22 insurance or coverage for a teen driver. Contact us today to discuss your insurance needs and receive quotes.