Who Pays Medical Expenses When a Driver Has No-Fault Coverage?

Whenever someone gets into a car accident and gets injured, one of their main concerns is how they are going to pay for their medical expenses. If the injured person was not at fault for the accident, then in most cases they can file an injury claim against the insurance company of the at-fault driver. If the insurance company accepts the settlement offer, then they will pay or reimburse the injured person for their medical bills. However, the situation is different in states that have a no-fault car insurance system.

In those states, it is the injured driver’s insurance company who will pay for most or all of the driver’s medical bills and lost wages. The situation in no-fault states can get complicated, which is why the legal experts at 1-800-Injured suggest that you contact a personal injury attorney to help you. 

What is No-Fault Car Insurance?

No-fault car insurance— sometimes called Personal Injury Protection (PIP)– requires that a driver have PIP coverage as part of their auto insurance. It provides coverage for medical bills, lost wages, and some out of pocket expenses. However, it does not provide coverage for pain and suffering. No-fault insurance provides coverage up to a certain limit and you can only file a liability claim against the at-fault driver if your medical expenses exceed that limit. The details are different in each state so if you live in a no-fault state, then you should find out how it works where you live.

In Florida for example, a driver’s PIP will pay 80% of medical bills, 60% of lost wages, and 100% of replacement services costs. Any PIP claims need to be made within fourteen days of the accident. The liability limits of PIP coverage are split into the following categories: bodily injury per person; bodily injury per accident; property damage per accident. Florida has a 10/20/10 split when it comes to minimum liability limits, meaning that the insured river would receive $10,000 per person with no more than $20,000 being paid each accident, plus $10,000 of property coverage per accident.

What all of this means for Florida drivers is that their PIP covers 80% of their medical bills, up to $10,000, and their medical payment insurance covers the rest up to a limit of $5000. If their medical expenses exceed $15,000, then the at-fault driver will have to pay the remaining amount. Ultimately, no-fault insurance pays for the insured drivers expenses after a car accident, but only up to a certain limit. Once they have exceeded that limit, their medical payment insurance takes over. If their medical payment insurance reaches its limit and the driver is not at fault, then the at-fault driver’s insurance should cover the rest. If the at-fault driver is uninsured or underinsured, then uninsured motorist coverage should take care of the rest.

The Future of No-Fault Insurance

In Florida at least, legislators are considering ending no-fault insurance coverage because they believe that doing so would help to lower car insurance premiums. The new law would require that drivers carry at least $25,000 in bodily injury coverage for the injury or death of one person and $50,000 in coverage for two people. However, insurers believe that this could increase the number of uninsured Florida drivers even further because insurance would become too expensive for most people.

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