The Facts About No-Fault Car Insurance

No-fault car insurance is probably one of the most misunderstood aspects of the insurance world. The whole prospect of a no-fault economy sets people's teeth on edge in the mistaken belief that through a no-fault system drivers are basically being handed a "Get Out of Jail Free" card relieving them of the responsibility for their actions. The good news is, the insurance community is a little smarter than that.?

The no-fault system was first hatched as a half baked academic theory back in the 20's and 30's. Experts speculated that the amount of time that was spent on settling car insurance claims could be dramatically cut by encouraging each driver's individual insurance provider to pick up the tab for their damages when they were involved in an accident-regardless of which driver caused it. The current system was inefficient, with trivial traffic cases tying up the court system courtesy of drivers and insurance companies alike trying to reclaim damages from uninsured or underinsured drivers and drivers who didn't want to own up to their actions.

Instead, they speculated, by removing the potential for litigation they could not only ensure that the court systems flowed more smoothly, they could also rescue drivers from facing legal action for non-economic damages (pain and suffering, for example) and solve the problem of uninsured motorists in one fell swoop. The driver driving without car insurance would be completely responsible for their own repairs, but the driver who didn't cause the accident would be able to have their insurance provider pay their damages and get on with their life.
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All in all, a no-fault car insurance system seemed like the ideal solution; however, the idea didn't gain enough popularity to hit the public and become a permanent part of the system until the 60's and 70's (and that's not just because the legal system hated the idea of losing the potential for litigation). Now, a large number of states from coast to coast have adopted either a completely no-fault system of insurance or have made no-fault insurance an option to their drivers.
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Of course, that doesn't really solve the problem of making sure that drivers are out hitting the roads responsibly. After all, through the no-fault system they're not going to be responsible for paying for the damages they cause. The catch is, with insurance they wouldn't be paying those damages either. They would pay their deductible (eventually), their insurance company would pay the bill, and life would move on. They'd enjoy paying higher insurance premiums and the tickets issued by the local police, but that would be about it.
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Through the no-fault system those tickets and premium increases still exist, which means that irresponsible drivers are not, by any means, getting let off easy. A no-fault system still encourages responsible driving, it just makes sure that the innocent bystanders aren't forced to suffer needlessly for months on end because of someone else's carelessness.

Anthony M. Peck is the Senior Developer, Software Project Manager, and Director of Business Development for QuoteScout.com. Since its launch in 1996 the company has specialized in matching consumers' requests for insurance quotes with multiple insurance quotes from both local agents and national insurance carriers

For more information about no-fault car insurance, visit them on the web at http://www.QuoteScout.com