What Is No-Fault Insurance Coverage?

This is the type of coverage guaranteed to drivers in states with no-fault liability laws. It indemnifies an insured driver for losses. That same driver gets paid by his or her own insurance company. This type of coverage has a second name: personal injury protection. You might not be able to get it if you represent your case on your own but having an experienced injury lawyer in Windsor to file and handle your case can be an asset.

Why some states have passed the no-fault liability laws:

This exempts individuals from liability, should they be involved in an automobile accident. Earlier, companies looked for any way to get money that could cover the damages caused by an uninsured driver. For example, in a 3 car collision, with one vehicle in the middle, that middle driver might get charged for damage to the front automobile.

• This eliminates liability claims and lawsuits in smaller accidents.
• Those no-fault liability laws do not apply to vehicle damage.
• Victims of serious or permanent injuries can claim pain and suffering.

Some states have a hybrid system.

• In those states no-fault coverage supplements 3rd party liability insurance.
• In those states there are no limits on lawsuits.

How does no-fault insurance differ from no-fault liability coverage?

In states with no-fault liability coverage, each driver must purchase no-fault insurance. When there is a motor vehicle accident, the insurance company must pay for damages, regardless of who has been found at-fault. That payment goes to the involved driver that had purchased a policy from the company that has paid for all the claimed damages.

Advantages to no fault coverage

Victims feel more inclined to seek reimbursement for pain and suffering when someone has suffered a serious or permanent injury. This increases the chance that a driver with children in the car will go after compensation for loss of the grown child’s future earning capacity.

If parents feel reluctant to seek such reimbursement, the injured child could have to face a life in which his or her income was always threatened, owning to the frequency with which an earlier injury must be treated or corrected in some fashion.

Another advantage is that these claims are processed faster than other accident claims. In this type of claim the insurance company cannot deny the claim on any grounds generally as it is specified that damages have to be covered.

Disadvantages to no-fault coverage:

It places a greater burden on the insurance companies. Companies selling no-fault insurance must pay for accident-caused damage, regardless of who has been pointed to as the person liable for a given accident. On the other hand, it forces drivers to spend money on no-fault insurance.