Hi, I just had my auto insurance recently under my parents’ policy here in Florida and honestly, I am not familiar with some things on it. I still don’t know why Florida is a no-fault insurance state, so would you care to explain that?

Jose

Coral Springs, FL

Since you have just been recently added as a new driver to your parents’ car insurance policy in Florida, it is perfectly understandable that you are not yet familiar with everything that is on it. Majority of the states have conventional fault-based system wherein the compensation will be according to the driver’s level of fault in an accident. But, some states view that it will be expensive to fight through the courts just to figure out who was at fault in a lot of accidents. For this reason, some states are using another system which is no-fault insurance.

If you get involved in an accident, your car insurance company will pay for the damages up to a certain limit, no matter whose fault it was under the no-fault system. In return for this definite compensation, you should give up some of your rights to take legal action against the other person involved in the accident. Similarly, you will not be taken to court by the other party in case you are the one who caused the accident. There are some aspects of no-fault in every car insurance policy. For instance, medical payments as well as property damage are normally being compensated whoever is to blame in the accident.