Friday, March 20, 2009

No-Fault Insurance - Stuff You Need to Understand

Out of the 50 US states, only 13 have adopted "No fault" auto insurance. The majority of the states follow a fault based system. This establishes how insurance companies will settle their claims. Measuring fault is the basis for each case.

The problem with this traditional rationale is that it can take up a lot of time and money. Plus, it crowds an already overcrowded court system. Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah are the 13 states that use the no-fault insurance system.

With no-fault, your insurance company pays no matter who is at fault. Policy limits are paid out. You would sacrifice any privileges to bring a claim to any other drivers that may have been caught up in the accident.

Regardless of who is at fault, medical and property expenses are covered. This type of insurance is used to eliminate lawsuits from being brought into court. This is done by placing limits on pain and suffering while offering limited compensation for any loss.

There are actually two different types of no-fault insurance. Pure no fault will pay for medical and wage loss up to your policy limit. However, the other costs you would not be allowed to sue for. None of the US states use this system. Pure no fault is essentially out dated.

The modified no fault is used in the states that function with no- fault. With this you could possibly bring forth a lawsuit even though your lost wages and damages are covered. If damages surpass a specific amount then it would be possible to recoup losses. Severe injuries only can go before the courts.

There are benefits to using this system. Claims are processed quicker and eliminating attorneys keeps prices for insurance down. The courts benefit by a reduction in court cases.

Because all drivers are treated equally, many would prefer to use a different system. Many also feel that people are not rewarded fairly for pain and suffering. There are pros and cons with either plan.

Here are great pages for auto insurance quotes..

InsureMe Auto Insurance Quotes

Auto Insurance Quotes

Chimezirim Odimba writes on insurance

1 comment:

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