• Florida's no-fault system has several restrictions to insurance compensation.florida secret image by feisty from Fotolia.com
  
  Florida has been a no-fault auto insurance state since the 1970s. Under the no-fault guidelines, each party involved in an accident is reimbursed for his injury and non-economic costs by his own insurance company, regardless of who is at fault for the accident. Restrictions apply to the compensation settlements available under the no-fault system.
  
  

Injury Benefits

• No-fault auto insurance coverage in Florida is called personal injury protection (PIP). Your PIP benefit pays 80 percent of your injury-related expenses up to the policy limit. The remaining 20 percent of the expenses, as well as any expenses that exceed the policy limit, will be part of your claim against the responsible party's bodily injury liability coverage, if it exists.
  
  

Medical Payments

• Florida auto insurance policies offer an optional coverage called medical payments (MP). MP coverage pays for the remaining 20 percent of injury expenses not covered by PIP. If you are responsible for an accident and are injured but do not carry MP, you will not be compensated for the expenses not covered by PIP.
  
  

Lost Wages

• PIP pays 60 percent of your lost wages if you are unable to work after an auto accident, up to the policy limits. Injury costs may be covered by health insurance but lost wages will not be, so if you are concerned about your policy limit being unable to pay all the necessary expenses then you may want to speak to your insurance company about using your PIP benefit to pay lost wages before injury expenses, lest your benefit run out. Any unpaid lost wage expenses are included in a claim against the responsible party's liability coverage, if present.
  
  

Lawsuits

• The Florida no-fault system limits your ability to file a lawsuit against another driver in an accident. To bring a lawsuit for non-economic expenses such as pain and suffering, you must first demonstrate that your injuries exceed the state's tort threshold. Specifically, you must show that you have suffered a significant and permanent loss of important bodily function, a permanent injury, significant and permanent scarring or disfigurement or death.