Florida Car Accident Terms, Explained
A plain-English dictionary of the words insurers, adjusters, and lawyers use after a Florida crash — what each one actually means for your claim.
- 17c formula
The calculation insurers commonly use as a starting point for diminished-value offers: roughly 10% of the vehicle's value, adjusted by damage and mileage factors. It is a lowball starting point, not a legal standard.
Read the full guide →- Bodily Injury (BI) liability coverage
The coverage that pays for injuries you cause to someone else. Florida does not require drivers to carry it, so an at-fault driver may have little or none — which is why your recovery is often capped by their policy limit.
Read the full guide →- Contingency fee
How most Florida injury lawyers are paid: a percentage of your recovery instead of an hourly rate, so you owe nothing if you recover nothing. Florida Bar rules set the standard percentages, which rise once a lawsuit is answered.
Read the full guide →- Demand letter
The formal letter that opens settlement negotiations, setting out how the crash happened, your injuries and treatment, your losses in dollars, and the amount you are asking the insurer to pay.
Read the full guide →- Diminished value
The resale value your car loses simply because it now has an accident on its record, even after a flawless repair. You claim it from the at-fault driver's insurer, not from your own PIP.
Read the full guide →- EMC (Emergency Medical Condition)Fla. Stat. § 627.736(1)(a)
A finding that unlocks the full $10,000 of PIP. Without an EMC certification your PIP cap silently drops to $2,500. Only an MD, DO, physician assistant, or advanced practice registered nurse can certify one — a chiropractor cannot.
Read the full guide →- Made-whole doctrine
A Florida principle that can reduce or eliminate an insurer's reimbursement claim when your settlement did not fully compensate your losses. It is a negotiating lever you have to win, not an automatic discount.
Read the full guide →- Medical lien
A claim against your settlement by someone who paid or provided your medical care — a health insurer, Medicare, Medicaid, or a hospital. Liens come out of your recovery before you keep anything.
Read the full guide →- Modified comparative negligence (the 51% bar)Fla. Stat. § 768.81
Since HB 837 took effect on March 24, 2023, a Florida crash victim who is more than 50% at fault recovers nothing. At 50% or less, your damages are reduced by your percentage of fault.
Read the full guide →- Net recovery
What actually reaches your pocket: the gross settlement minus attorney fees, case costs, medical liens, and any reduction for your share of fault. It is usually far less than the headline number.
Read the full guide →- No-fault
Florida's system in which your own auto insurer pays your first round of medical bills through PIP regardless of who caused the crash. It does not mean nobody is at fault — fault still decides who pays for everything beyond PIP.
Read the full guide →- PIP (Personal Injury Protection)Fla. Stat. § 627.736
Florida's mandatory $10,000 of no-fault auto coverage. It pays 80% of reasonable medical bills and 60% of lost wages out of one shared $10,000 pool, regardless of who caused the crash, plus a separate $5,000 death benefit.
Read the full guide →- Serious injury thresholdFla. Stat. § 627.737
The bar you must clear before you can sue an at-fault driver for pain and suffering in Florida's no-fault system — generally significant and permanent loss of a bodily function, permanent injury, significant scarring or disfigurement, or death.
Read the full guide →- Statute of limitationsFla. Stat. § 95.11(5)(a)
The deadline to file a lawsuit. HB 837 cut Florida's negligence deadline from four years to two years for crashes on or after March 24, 2023. It is separate from — and much longer than — the 14-day PIP deadline.
Read the full guide →- Subrogation
An insurer's right to be repaid out of your settlement for what it already paid on your behalf. It is the mechanism behind most medical liens.
Read the full guide →- The 14-day ruleFla. Stat. § 627.736
You must receive initial medical care within 14 days of a Florida crash or you forfeit all of your PIP benefits. The clock runs on calendar days from the date of the accident.
Read the full guide →- Total loss / ACV (Actual Cash Value)
When repair costs approach the car's value, the insurer declares a total loss and pays its actual cash value instead of repairing it. In Florida that payout should also include sales tax and title and tag fees.
Read the full guide →- UM / UIM (Uninsured & Underinsured Motorist coverage)
Coverage on your own policy that pays you directly when the at-fault driver has no insurance, too little insurance, or flees the scene. It is the most overlooked coverage in Florida and often the only real source of payment.
Read the full guide →
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This is general information about Florida law, not legal advice. For advice about your situation, talk to a licensed Florida attorney.