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No Fault Car Insurance Explained

Car accidents are just a part of life. Unfortunately, they happen every day and there‘s not a whole lot we can do to change that. They happen every day, and often when we least expect them or are least financially prepared for them. Even a little bumper thumper can become a royal pain, and all it takes is the guy in front of you looking away to change the radio station or to answer the cell phone for an accident to occur. Then you can look forward to a visit with your auto insurance company, the cost of an attorney, and maybe even a day in court with a judge. Wouldn’t it be great if you could just file your claim, get the damage to your car fixed, and be done? That’s how no-fault auto insurance works. Be sure to ask specifically about no-fault insurance when you get a car insurance quote.

With this type of car insurance, people involved in accidents don’t have to prove who was at fault in the event. In most cases, the auto insurance company will pay the claim no matter what under those provisions. Proving who was at fault often means an expensive trip to court, costly attorney fees and missed work. No fault systems remove the need to visit court rooms for smaller accidents. Smaller claims are usually handled and paid directly by the vehicle insurance company.

The laws for no-fault insurance were created by each state to relieve the number of court cases required to get you back on your way. Of course, this does not mean that accidents never go to court. Drivers can still bring a case to court when there are serious injuries involved. Each state has different regulations about who can file suit, so check with your auto insurance agent to find out what the rules are for your area.

Will I Have to Go to Court Because of an Accident?

Lowering the number of accident related court cases is an admirable ambition, but there are of course debates that have emerged about how helpful no-fault auto insurance really is. The critics say that no-fault car insurances have created more accidents. Since the person who was at fault is not determined under this system and there is little repercussion other than car insurance premiums, they say that there is no reason for safer driving. Critics also suggest that going to court is a deterrence effort that causes unsafe and negligent drivers to contemplate their unsafe driving habits. By removing those aspects of the system, you remove the fear of driving badly, thus giving people permission for reckless behavior, or so that is the theory.

The truth is that there are a lot of benefits to this type of insurance, in spite of the circumstances. There may be people who take advantage of the situation, yes, but there are also a lot of people out there who genuinely use this form of protection for good. Sometimes accidents just happen. Having car insurance that covers everything right from the start can be a great stress reliever in times of true need. For people that use the system properly, it can be a highly beneficial tool that can certainly make the process of an accident go by a lot smoother.

Are Medical Bills under No Fault Auto Insurance Paid?

With no fault car insurance, your medical bills are paid. You might also be eligible to receive wages lost because you couldn’t work due to the accident. This is often something that people forget to ask for in an insurance claim, but it is a primary side effect of the accident. Be sure that you include this whenever you go to file a claim as you can get compensated for the time that you pent out of a job because of injury. When you get a car insurance quote be sure to ask about medical coverage.

Many auto insurance carriers will allow you to purchase supplemental coverage to pay for matters that the rest of your insurance may not allot for. This additional coverage (called “riders”) will allow you to be reimbursed for certain services, such as health insurance premium payment or daycare services for both children and an elderly parent or sick life partner. The services reimbursed are all related to services you were able to provide before the accident. This works the same as the work compensation does, paying you for what you are missing out on.

What Isn't Covered under No Fault Car Insurance Policies?

There are things that are not covered by a no-fault insurance plan. Without additional coverage, you can be held liable for physical damage compensation. This includes situations where you destroy someone else’s physical property, like when an elderly man or woman runs into a fence or a mail box. You’ll need to check with your auto insurance agent to ensure you have property damage coverage. Collision coverage would also be needed to cover the costs of repairing the vehicles involved in which you are found liable. Basically, even if you have car insurance, you may still be responsible for some of the costs.

Twelve states currently have no fault accident insurance laws in effect. You should find out what the rules are for your area so you know what you are eligible for. Where you live will affect the cost and the type of coverage that will be available. Areas with no-fault insurance may have higher monthly premiums to pay to make up for the additional coverage. You should be aware of these changing rates if you move to a sate with different regulations as it will affect the amount of money you pay on a monthly basis. Allot for a higher insurance payment when moving to a state that allows for no-fault auto insurance.

Who Benefits the Most from No Fault Policies?

This form of vehicle insurance is most beneficial for the victims involved in a car accident that are not able to pay for their expenses in advance while waiting for a settlement. Sometimes the money just isn’t there, and no fault provisions help people in those situations. In a poor economy like the one that we’re in right now, every penny counts. No fault insurance helps people keep their money when they need it most, picking up the slack that other insurance policies do not cover.

Each state with no-fault laws will have many options to choose from in terms of how much the auto insurance covers and the rates for each policy. What options you choose will determine what you will pay, so you ill need to weigh each policy and determine which one best suits your needs. Check with you insurance agent to learn what options are available to you as well as the premiums involved. If you are not currently insured or want to change agents, go online for free premium quotes to see which options are the best for you. Be sure to ask about the no fault laws in your state and what, if any, coverage amounts are required when you request a car insurance quote.

Overall, no-fault auto insurance is often looked at in the wrong light. Those who claim that it promotes poor driving have probably never had to use it. People who have been in need of that kind of auto insurance know how helpful it can be. If anything, this insurance promotes better driving as people feel grateful for being able to get out of an accident in a timely manner. No one likes to file for an insurance claim in the first place, but when it has to happen, it’s nice to know that everything can happen quickly.


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