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Learn About No Fault Car Insurance

If you live in a state that operates under a no fault system when dealing with automobile collisions, you will be required to carry what is called personal injury protection insurance. Under a no fault system, there is not particular party at fault in an accident. Each motorist shares an equal amount of blame. Your insurance provider will be responsible, monetarily, only for the costs of the medical expenses and property damage repairs that you may incur.  

Essentially, what personal injury protection insurance (also known as PIP) does is cover you or your passengers' medical expenses should you happen to be in involved in a collision. This includes funeral expenses that may result from a particularly serious accident. The coverage will also extend to any pedestrians who may be injured in an accident. According to the terms in your policy, the PIP may also cover lost wages or other damages. This form of coverage is designed to protect you despite whose fault it might have been in the accident. Your insurance rates will not increase due to any claim you may file under your personal injury protection insurance.  

The type of treatments that personal injury protection insurance will cover is dictated by the terms of your policy. While acupuncture is considered an acceptable form of treatment under this type of coverage, it is not considered so in Delaware. The monetary amounts of coverage you are required to carry also vary widely. Minnesota only requires its motorists to have $5,000 worth of coverage; however, New York requires its motorists to maintain $20,000 worth of the coverage. The maximum limit you can purchase is usually set at around $250,000. Because many motorists today are covered by comprehensive health insurance policies, most people do no elect to purchase more than the minimum amounts of coverage required.

It is important to note that the majority of states follow a Tort system, why is the opposite of a no fault system. In such states, no fault insurance is not required and is usually not logical to purchase. You need to contact your local Department of Motor Vehicles to find out what sort of policy your state follows. That way you can determine what your minimal needs will be and whether there will be any coverage necessary at all. There is no need to obtain PIP if other forms of coverage will allot for the same events.




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