If you live in a state that requires no fault insurance you may not understand what no fault insurance is and how it differs from standard car insurance systems. But before you purchase a new no fault insurance policy, you need to understand what no-fault insurance is all about.
The no fault insurance policy is required by 10 U.S States which include Florida, Hawaii, Kansas, Massachusetts, Michigan etc. Three other regions which allow you to select no fault insurance option are Washington D.C, Kentucky and Pennsylvania.
Under the standard liability insurance system, the ability to improve damages is based upon the negligence which is provable that is the ability to prove who was at fault at the time of accident. So to make up for such losses one need to have a no –fault insurance. In event of such an accident, your insurance company would pay up for the losses without taking into consideration who is at fault. If a no-fault insurance system is pure then it will cover you fully in the event if an accident, as well as prohibit from suing another driver. There is no state in United States that offers a fully no fault insurance system. They generally use a combination of no fault insurance and standard liability which means that under certain situations law suits are permitted.
Even if one lives in a no fault insurance state he/ she needs to have liability coverage. Because in most states drivers are held responsible for accident damages if injuries reach a certain level of severity. The law may state a broad definition of what type of severe and serious injuries like death, dismemberment and disfiguration is required, and due to which it is required that one has a liability coverage.
In no fault insurance policy one needs to have Personal Injury Protection which is the piece of car insurance policy terms. These insurance companies will determine the liability, if you are at fault and you don’t have car insurance then both the medical insurer and no fault insurance company would file a lawsuit which would help you recover damages. And if one is at fault, and don’t have collision car insurance then you would be responsible for repairing your own car.
No fault insurance is designed to protect drivers so that they get proper medical coverage, as well as reduce the legal and administrative costs associated with insurance claims. Under the standard liability insurance scheme, victims can be left unable to obtain appropriate medical coverage, and physicians unable to recover the fees. This would reduce the car insurance premiums. Shopping for no-fault insurance requires some basic things which one would like to have. Some of them include:
Under the standard liability insurance system, the ability to improve damages is based upon the negligence which is provable that is the ability to prove who was at fault at the time of accident. So to make up for such losses one need to have a no –fault insurance. In event of such an accident, your insurance company would pay up for the losses without taking into consideration who is at fault. If a no-fault insurance system is pure then it will cover you fully in the event if an accident, as well as prohibit from suing another driver. There is no state in United States that offers a fully no fault insurance system. They generally use a combination of no fault insurance and standard liability which means that under certain situations law suits are permitted.
Even if one lives in a no fault insurance state he/ she needs to have liability coverage. Because in most states drivers are held responsible for accident damages if injuries reach a certain level of severity. The law may state a broad definition of what type of severe and serious injuries like death, dismemberment and disfiguration is required, and due to which it is required that one has a liability coverage.
In no fault insurance policy one needs to have Personal Injury Protection which is the piece of car insurance policy terms. These insurance companies will determine the liability, if you are at fault and you don’t have car insurance then both the medical insurer and no fault insurance company would file a lawsuit which would help you recover damages. And if one is at fault, and don’t have collision car insurance then you would be responsible for repairing your own car.
No fault insurance is designed to protect drivers so that they get proper medical coverage, as well as reduce the legal and administrative costs associated with insurance claims. Under the standard liability insurance scheme, victims can be left unable to obtain appropriate medical coverage, and physicians unable to recover the fees. This would reduce the car insurance premiums. Shopping for no-fault insurance requires some basic things which one would like to have. Some of them include:
- Understanding the specific state rules, requirements and regulations.
- Creating a personal auto insurance profile, which would list out vehicles one own and their safety features along with the driving records of anyone using them who drives them, where you live and what you can afford to give in a premium and the assets you need to protect yourself.
- One also needs to compare the rates, for different no-fault insurance which are available with different insurance agents which would help you determine the best protection as well as car insurance premiums.
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