Getting in a car accident happens more often than you may think, and it’s never a pleasant experience. The idea behind a product such as no-fault insurance is to make your life just a little bit easier in just such a situation. A car accident can be a confusing and chaotic incident. You’re shaken up or injured, and the other party–regardless of fault–may also be injured and just as shaken up. Even if you were not injured too badly, it is always prudent to consult with a car accident lawyer to see what your options are. Here is what to expect from no-fault insurance.
What Is No-Fault Insurance?
In a general sense, no-fault car insurance just means that your insurance company would only pay for damages that you sustained if you got involved in a car wreck, and would not pay other parties for damages. This is regardless of which party is at fault for the accident. This makes sense when you think of the name “no-fault.” The other party who is involved in the car wreck would instead seek reimbursement from his own car insurance company for any damages to his person or car. There are various no-fault states in the U.S. They are Utah, Pennsylvania, New York, North Dakota, New Jersey, Minnesota, Michigan, Kentucky, Massachusetts, Florida, Kansas and Hawaii.
The Objective of No-Fault Insurance
The whole point of no-fault car insurance is to bring down legal costs for all parties involved. This type of insurance reduces or eliminates the need for insurance claims adjustors to go to court. The reason is because every party in the car wreck seeks reimbursement from his own insurance company, and this does away with the need to determine just which party is at fault in the car wreck! However, drivers who are at fault can see an increase in their car insurance premiums. Not every state in the U.S. has no-fault insurance.
What No-Fault Insurance Can Cover
No-fault car insurance typically covers only the PIP (personal injury protection) aspect of one’s car insurance policy. For instance, every driver’s car insurance company would deal with medical bills as well as any lost wages for time missed from work. Unfortunately, some states in the country have restrictions on just how much money a driver who has been found at fault can be sued for. These states are Minnesota, Utah, North Dakota, Massachusetts, Kentucky, Kansas and Hawaii. The law refers to these restrictions as monetary thresholds.
This is what you can expect if you get into a car accident, yet have no-fault insurance on your side. In essence, you’ll be able to save legal costs and won’t have to deal with lengthy court times. Still, if you got into a car wreck, it is always recommended that you consult with a lawyer, so that you can stay informed of all of your options. A good car accident lawyer is always there to give you sound advice to help you get through the incident.