I caused a crash in Florida – please help

This is a “no-fault” state. I found out that my insurance crash limitations only covered $10,000 in coverage (lame, I know!). But my car alone had $2,500 in damage. But the two other cars had very little damage, HOWEVER, one of the cars was a 2006 Cadillac (EEK!).

So my insurance company sends me a certified letter stating that the amount MAY be more than what my insurance can cover and that I MAY want to retain a lawyer. (We’re a military family, so we’d be using the SJA.)

But I talked to someone and they said Florida (like California) is a no-fault state and that if my insurance DOES run out, the woman’s insurance would then pick up that tab.

Is this true? I know this is truly unfair, but I just want to know where I stand and do I need to talk to a lawyer anyways?

First, you need to understand what no fault insurance is. It doesn’t eliminate the possibility you will be sued, it merely puts some limitations on it.

How no fault insurance works
“No fault insurance” is a general term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages.

In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies.

Under a pure no fault system, drivers would be completely covered by their own policy, and would be barred from ever suing another driver for damages.

However, no state uses a pure system. Instead, all “no fault” states actually use parts of both the no fault system and the standard liability system (under which you’re financially responsible for the cost of damages you cause). States do this by permitting lawsuits in certain cases.

California is NOT a no fault state. If the woman has under insured coverage on her policy, her insurance would indeed pay, but then they would want the responsible party (you) to pay them back.

Instead of talking to ‘someone’ I suggest you do as your own insurance suggested, and talk to an attorney now rather than later. There are some preemptive steps that can be taken.

So you will be better informed:

Currently 12 states and Puerto Rico have no-fault auto insurance laws. Florida, Michigan, New Jersey, New York and Pennsylvania have verbal thresholds. The other seven states—Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah—use a monetary threshold. Three states have a “choice” no-fault law. In New Jersey, Pennsylvania and Kentucky, motorists may reject the lawsuit threshold and retain the right to sue for any auto-related injury.

Note that CA is not mentioned on the list.