What is “No fault insurance’
States that practice no fault insurance system
In many states, you can purchase no fault insurance. It broadly means that the
car insurance company will pay for the damages that are caused by the accident
of car irrespective of who’s fault it was. In 12 states out of 50 states, you
can purchase or use this kind of car insurance. While other states don’t allow
this kind of car insurance and have the liability insurance where a person can
be legally responsible for the damages and payments arising out of the car
accident.
These states are FL, MI, NJ, PA, HI, KS, KY, MA, MN, ND and UT. In these
states, in addition, the state laws place a restriction on seeking monetary
damages from the car owners or the operators of the cars that were involved in
the accident. Look for the car insurance quotes online and then comparing the
rates. Get the cheapest car insurance policy in these states by going comparing
the online quotes. For this reasons many purchase gap insurance.
Who
can sue for damages and payments under this system?
In this system, the person who has incurred the medical payouts is only allowed
to sue for the damages and not everyone who has been involved in the accidents.
Only if a person has had serious injury can they seek to claim the damages. In
Kentucky, New Jersey and Pennsylvania, car owners can opt to have “no fault”
car insurance and at fault car insurance.
Default
options at the time of purchasing the car insurance policy
This option is given at the time of signing a new contract or at the time of
the renewal of the car insurance. But it can’t be changed midway through the
policy. By default, the “no fault” option is assigned to those that opt for car
insurance policies in Kentucky and New Jersey. However those that are in
Pennsylvania are given the “at fault” car insurance policies by default.
Speedy
disbursal of payouts
“No fault” car insurance provides for quick and speedy disbursal of claims and
payments for injuries. It reduces the insurance premiums as it reduces the
incidence of the lawsuits that arise out of car accidents.
What
is liability insurance?
The at fault system for car insurance, fault is determined by the legal
principles of “proven negligence”. This means that if you cause a car accident,
you are legally responsible for the damages. This is known as the “at fault “
system or liability insurance.
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