FLORIDA AUTO INSURANCE
– THE BASICS
What is No-Fault?
No-fault is currently a mandated part of your auto insurance policy
that covers your medical expenses in case of an accident, regardless
of who is at fault. That part of your policy will no longer be
mandated after October 1, 2007.
Will this take effect all at once?
No. Most policies won't change until they come up for renewal.
We strongly recommend you talk to your insurance agent so you
understand what coverages fit your needs before your policy changes.
What is a Fault Based system?
A fault based system for injuries will hold drivers responsible
for injuries they cause in the same way they are already held
responsible in Florida when they damage someone else’s property
in an accident. Thirty-eight states, including California, Georgia
and Texas, have fault-based auto insurance systems.
What happens if I'm in an accident after Oct. 1 and I
am hurt?
Florida already has a fault-based auto insurance system for damage
caused to property. After October 1, bodily injuries will be treated
the same way. Once fault has been determined in the accident (which
is usually done quickly and without controversy), the at-fault
driver will be held responsible for damages and injuries. If the
at-fault driver has insurance, that company pays your medical
expenses. If not, your uninsured motorist coverage will cover
those costs, or your insurance company may have to file a lawsuit
to recover damages. Your health insurance may also cover some
expenses.
What kind of auto insurance coverage does Florida law
require?
When no-fault sunsets, Florida drivers will still be required
to carry auto insurance and comply with Florida’s Financial
Responsibility Law and property damage liability laws. That means
drivers must be financially responsible for up to $10,000 in property
damage and $20,000 in bodily injury damages in the event they
cause an accident. Most drivers fulfill that requirement through
bodily injury and property damage insurance coverage.
In fact, 92 percent of Florida drivers already carry bodily injury
liability in addition to no-fault, according to a recent report
by the National Association of Insurance Commissioners.
Will my auto insurance rates go down?
Regulators say yes. State Farm, Allstate and AIG (which make up
nearly 50 percent of the auto insurance market in Florida) have
requested rate decreases for auto customers, and most other insurers
are expected to do the same. The Florida Office of Insurance Regulation
has already approved State Farm’s almost 16 percent rate
decrease. State Farm insures more than two million of Florida’s
drivers. On average, Florida families can expect to save $360
annually with the elimination of this broken no-fault system.
How much could I save?
The average savings for a two car family is $360 annually. In
areas like Tampa, Orlando and Miami, where instances of fraud
and staged accidents are more prevalent, the savings will be even
greater. Two car families in Tampa will save more than $460 a
year; while Miami families stand to save the most as a result
of the no-fault sunset, with their premiums dropping more than
$800.
Will my health insurance rates go up?
Since Colorado ended its broken no-fault system four years ago,
auto insurance rates decreased 30-plus percent while healthcare
costs increased only one to two percent.
What about bodily injury protection?
While it isn’t mandatory, most policies carry some kind
of bodily injury coverage, and 92 percent of Florida drivers already
carry bodily liability coverage. This coverage protects you if
you injure someone in an accident.
Why hasn’t the Legislature revived the mandatory
no-fault law?
The Legislature has had four years to come up with a solution
to fix the state's broken no-fault law. Unfortunately, every attempt
at reasonable, common sense reform that would make the coverage
beneficial to consumers has been blocked by those special interests
making billions off the broken system.
What should people do with more questions?
Explore this site to learn more about why a fault based system
will benefit consumers. And if you are wondering what your policy
covers, be sure to contact your insurance agent or company to
review your coverage options to ensure that you are covered in
case of an accident.
Florida’s not alone
Thirty-eight states, including California, Georgia and Texas,
do not have no-fault mandates. No state has implemented a no-fault
mandate since the 1970s. States that have repealed their no-fault
laws in recent years:
- Nevada: effective 1974, repealed 1980.
- Pennsylvania: effective 1976, repealed 1984, re-enacted 1990.
- Georgia: effective 1975, repealed 1991.
- Connecticut: effective 1973, repealed 1993.
- Colorado: effective 1974, repealed 2003.
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