Florida follows a “no-fault” auto insurance model, which means each driver’s insurance provider pays for many of their policyholder’s losses, regardless of who was at fault. A key component of a no-fault insurance policy is personal injury protection (PIP) coverage. This insurance pays for your medical expenses, lost wages, and certain incidental losses you incur as a result of crash-related injuries any time you are in a wreck. While PIP insurance covers you regardless of who is to blame, determining who is at fault is still crucial under certain circumstances, such as: When your losses exceed your PIP policy limits. Your PIP coverage should pay for your medical expenses and related losses, but it may not cover all of your expenses. If you sustain serious injuries and don’t have enough to pay your accident-related healthcare bills, you can step outside of Florida’s usual no-fault system and file a claim against the other driver. However, you can only claim compensation from another driver if you can prove they were at fault. When you decide to file a lawsuit. In some cases, your crash-related injuries or losses might be so extensive that the available insurance coverage is not enough to pay for them. If so, you might choose to file a lawsuit against the other driver to recover additional compensation. In a no-fault state like Florida, you can only file a lawsuit if your injuries meet a certain severity threshold and you have evidence showing that the other driver was at fault. When you renew your auto insurance policy. Your no-fault provider should cover certain losses up to the limits of your policy, but claiming those no-fault benefits could affect your premiums when you renew your insurance policy. If the insurance company believes you are at fault for an accident, it might use that determination to increase your monthly premiums or decline to renew your policy altogether.