What Is No Fault Auto Insurance
No fault auto insurance coverage is a type of insurance required in 12 states. This insurance coverage has drivers carrying their own protection for accidents. In other words, instead of figuring out who is at fault and having that individual's insurance pay the damages after an accident, no fault car insurance has each driver's individual policy pay for the damages caused in an accident.
If your state were a pure no fault auto insurance state, which none of them are, you would not be able to sue the other driver after an accident. Your insurance provider would pay for your medical bills, pain and suffering, lost wages, and other expenses after the accident. However, this is not how any of the states operate, and they do allow you limited ways to file for damages after an accident under certain restrictions, which vary from state to state.
You may be thinking that this system does not make sense. After all, why should your insurance company, and ultimately you yourself, pay for the damages someone else caused? One benefit of no fault auto insurance is the fact that you can receive your medical care quickly if you need it. You will not have to wait to be contacted by an insurance agent before you can head to the doctor or chiropractor.
No fault policies also cut down on all of the legal fees and administrative costs that insurance claims usually bring. In theory, this will lower insurance premiums. However, this usually does not occur, because the insurance company is more prone to have to pay for damages, even if you are a great driver. This tends to make your premiums quite high.
So when can you sue the other driver for damages under a no fault system? Again, the answer depends on where you live. However, in most cases you can sue if your damages reach a certain amount of money. Also, if you face lost wages, pain and suffering, or other non-medical costs, you will probably be able to sue. In states that require no fault auto insurance, liability coverage is still required because of these exceptions.
If you are wondering whether or not your existing insurance policy is a no fault policy, read it to see if you have a personal injury protection clause. Personal injury protection, or PIP, is the no fault portion of an insurance policy. This mostly covers injuries, not damage to your vehicle. If you have PIP on your insurance policy, there is a good chance you live in one of the 12 states that operates under a no fault car insurance policy.