In Florida’s no-fault system, each driver’s Personal Injury Protection (PIP) coverage pays for their own medical expenses and lost wages after a car accident, regardless of fault. Property damage, however, is handled differently. A driver’s own insurance company is responsible for covering the damage to their vehicle caused by a collision with another vehicle or object. This means individuals rely on their Collision coverage to repair or replace their vehicle.
This system, established to expedite compensation for injuries and vehicle repairs, aims to reduce litigation related to minor accidents. By requiring drivers to carry PIP and Property Damage Liability (PDL) coverage, the system ensures a baseline level of financial protection for all parties involved. Historically, this framework has been a subject of debate, focusing on its effectiveness in cost control and reducing lawsuits, particularly with evolving claim costs and legal interpretations.