Understanding Florida's No-Fault Insurance System

Florida is one of a handful of states that follow a no-fault car insurance model. This means that after a car accident, your own insurance pays for your medical expenses and certain other losses—regardless of who caused the crash. Personal Injury Protection, or PIP, is the backbone of this system.

Under Florida law, every driver must carry a minimum of $10,000 in Personal Injury Protection. This coverage is intended to reduce the number of lawsuits and ensure prompt payment for injury-related expenses like:

• 80% of medical expenses related to accident injuries
• 60% of lost wages due to inability to work
• $5,000 in death benefits

But who actually benefits from this policy? It’s not just the policyholder who may be entitled to PIP benefits.

Who Is Automatically Covered Under Your PIP Policy?

Your PIP coverage extends to more than just you as the named insured. Florida law defines specific individuals who are also covered under your policy:

1. You (the policyholder):

You’re the primary person protected under your PIP insurance. Whether you’re driving your own car or riding in someone else’s, your policy follows you.

2. Relatives Living in Your Household:

Florida law extends PIP coverage to resident relatives—family members related by blood, marriage, or adoption who live in your home. This includes spouses, children, and even elderly parents if they share your residence.

3. Passengers Without Their Own PIP Coverage:

If a passenger in your vehicle is injured in a crash and doesn’t own a car or carry their own PIP insurance, your policy may cover them—especially if they don’t live with someone who has an active PIP policy.

4. Pedestrians or Cyclists in Certain Circumstances:

If you're struck by a car while walking or biking, your own PIP insurance may still kick in, regardless of the vehicle involved.

Important Limitations on Household Coverage

While the general rule is that resident relatives are covered, there are a few important exceptions and limitations:

• Adult Children or Roommates: Adult children who live with you but own a car and carry their own insurance are covered under their own PIP policy, not yours.
• Non-relatives: Roommates, significant others, or friends who aren’t legally related to you and don’t have their own PIP coverage likely won’t be protected by your policy—even if they live under your roof.
• Vehicle Ownership Matters: If a household member owns a registered vehicle, Florida law requires them to carry their own PIP. In that case, your insurance will not extend to them—even if they’re related.

How Insurance Companies Determine Residency and Relationship

Disputes often arise over whether someone qualifies as a “resident relative.” Insurance companies will look at factors such as:

• Shared mailing address or utility bills
• Driver’s license or ID address
• Declarations of residency on tax returns
• Length of stay and frequency of overnight visits

Just being related or occasionally living together isn’t always enough. Courts have sometimes denied PIP benefits to relatives who were only temporarily staying in the household or had inconsistent residency documentation.

What If a Household Member Borrows Your Car?

If someone in your household uses your vehicle and gets into an accident, they are generally covered by your PIP policy if they qualify as a resident relative and do not own a separate insured vehicle. However, if they have their own registered car and PIP policy, your insurer will deny PIP claims from that individual—no matter who was at fault.

Florida’s insurance statute (F.S. 627.736) prioritizes the PIP coverage in the following order:

1. Injured person's own PIP policy
2. Household member’s PIP (if the person is a resident relative)
3. Vehicle owner’s PIP policy (if other two don’t apply)

This hierarchy helps determine which policy is liable in complex accident scenarios involving multiple vehicles or parties.

Coverage for Children in Your Household

Children in your home—whether biological, adopted, or stepchildren—are typically covered under your PIP policy as long as they reside with you. This includes situations where they’re riding in school buses, being driven by others, or even walking to school.

Keep in mind, however, that minors who own a car (which is rare) must carry their own PIP policy. If they are listed on your policy as drivers, they are typically covered regardless of whether they’re operating your car or someone else’s.

How to Maximize Your PIP Benefits

If you want to ensure that everyone in your household is adequately protected:

• List household drivers on your policy: This helps clarify who is covered and avoids denial of claims due to undisclosed drivers.
• Encourage each household member who owns a car to maintain valid PIP coverage.
• Review your policy annually to ensure that coverage limits and named individuals reflect your current living situation.
• Ask your insurer for clarification if you're unsure who qualifies under your policy. Misunderstandings can lead to denied claims or unexpected out-of-pocket costs.

Conclusion

Florida’s PIP system is designed to offer fast financial relief after an accident, but it doesn’t cover everyone equally. While your policy will extend to resident relatives, there are clear boundaries when it comes to non-relatives or family members who own their own vehicles. To avoid surprises, take the time to understand exactly who your PIP policy includes and update your information regularly. A bit of preparation today could save you and your loved ones from complicated—and costly—claim denials in the future.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Florida car accident claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve. 

Contact us now for a free legal review.