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Benefits of No Fault Insurance

Benefits of no fault insurance are the features of no fault auto policies that are beneficial to policyholders. There are a dozen states with some sort of no fault law, with some making it mandatory and others offering no fault as an alternative to tort coverage. With no fault you get personal injury protection (PIP) which covers you in the event of an accident and also covers any other insurable passenger in the vehicle.

There are some great benefits to no fault auto coverage and some great reasons to get enrolled in this policy type. First off, this gives you a nice base for coverage if you do not wish to carry comprehensive and collision on an older vehicle that is not worth very much money. It is a bad investment to throw your dollars at comp and collision when a car depreciates past a certain point, because the coverage is only based on the car’s value. But no fault has nothing to do with property, or car owner maintenance.

Medical Coverage and No Fault

This leads to another great benefit of no fault or PIP. It provides coverage for medical bills for the driver and any other passenger without regard to who caused an auto accident. This is where the name “no fault” comes in. Contrary to what some people might think, this does not mean that in these states there is no interest in finding out who is to blame for accidents. Car insurance companies and law enforcement agencies are still very interested in these matters. It just means that with no fault, you don’t have to wait for the fault finding process to be completed to wait to see if your medical care is going to be covered.

Passengers in a vehicle in most cases can also be covered by a driver’s PIP policy. This is great news for parents of younger children, for example. Think about what your out of pocket costs might be if you got into an accident while driving with your whole family and several family members got severely injured and required medical treatment. Just having this one single policy prevents all that worry, especially for folks who do not have great health insurance.

No Fault and Litigation

One of the intentions behind the legal guidelines putting no fault auto insurance laws into place was the intention to reduce car accident related litigation in the civil courts system. However, in most states there are built in provisions that allow claimants to sue for pain and suffering, lost wages, and so on if they meet certain conditions. For this reason, we don’t have to think of this system as one that prevents us from being able to sue, but rather one that tries to eliminate frivolous lawsuits. This is a good thing all around in theory, although in some states there has been a struggle to determine what those thresholds really are and how they are defined, and thus in some cases court dockets are still filled with accident cases.

Even so, no fault auto insurance law provides some excellent protection because it basically forces you to have that extra medical coverage you wouldn’t have in a tort state. The minimum state mandated policies in PIP states are more extensive, giving drivers better protection. Get some prices on no fault car insurance and save money on these plans by choosing low cost providers in your local area. There are many no fault insurance benefits on car coverage laws and the policies they create, and drivers get a lot of good out of these policies.


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