No-fault insurance: What you should know Even if you live in a state that requires no fault insurance, you can not fully understand this fault is not insured, and how it differs from traditional, standard liability (torte) car insurance systems . And if you move to another state that does not require default insurance, you can even have more difficulty understanding the changes in responsibility.
Before buying a new no fault insurance policy, make sure you understand what is no fault insurance, and understand the specific needs of your condition and your personal needs.
What no-fault insurance?
Currently, 10 U.S. states require no fault insurance (Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota and Utah). Three other areas you can select no-fault insurance option: Washington, DC, Kentucky and Pennsylvania.
In the system of standard liability insurance, the ability to recover damages is based on "demonstrable negligence" - the ability to prove who was at fault for your accident. However, under the insurance system without fault, your ability to recover damages from other drivers in case of accident is limited. To compensate for this limitation, you are required to purchase no-fault insurance. In the case of an accident, your insurance company pays your damages (up to your policy limits), regardless of who is at fault. Other drivers are covered by their insurance policy.
A pure no fault system would completely you covered for accidents, and ban you from ever pursuing another driver. United States, no state uses a pure no-fault insurance. Instead, no fault conditions using a combination of a no-fault insurance systems and the level of liability insurance. This means that, under certain circumstances, prosecutions are allowed.
In most states no fault, drivers can still be held financially liable for damages for an accident if the injury reaches a predetermined level of severity. For example, there may be a threshold amount in dollars for medical expenses that must be met before a lawsuit can be file. Or the law can verbally state a broad definition of what type of serious injury and serious - like death, dismemberment and disfigurement - benefit from the action torte.
Therefore it is important to have liability coverage even if you live in a state no-fault insurance.
About Your Insurance Policy No Fault: protection against personal injury
protection against personal injury (PIP) is part of your automobile insurance policy that relates to any fault coverage. Due to state laws, the special protection of injury vary from state to another. PIP often covers the cost of your medical insurance is not, as a co-pay and lost wages - and sometimes even replacement costs (at your expense, you do something you normally would do). Keep in mind that the PIP insurance is not designed to replace your personal medical insurance.
In addition, no-fault insurance does not affect the damages to automobiles involved in the accident. Insurance companies continue to establish accountability. If you're at fault and have no auto insurance, both the insurance company and not fault medical insurer may file a complaint against you to recover damages. And if you're at fault and not an insurance cover car accident, you are still responsible for repairing your own car.
No fault insurance was designed to protect drivers by providing everyone with medical coverage and reduce costs associated with legal and administrative claims. In the system of standard liability insurance, victims may be unable to obtain appropriate medical coverage, and doctors may be unable to recover their costs, while the responsible parties are sorting. Ideally, this would reduce auto insurance premiums. However, issues of liability remaining o.
Posted on May 8, 2010.
