Click Partners

There are twelve states in the United States which have No-Fault Insurance programs, including New York, Florida and Pennsylvania. No fault automobile insurance is also available in Washington, D.C. In the event of an accident caused by you, No-fault insurance coverage extends to your car only and not the other party. The main reason for no-fault automobile insurance is to decrease lawsuits following traffic accidents.

No-fault insurance limits the settlement you may obtain in a lawsuit. Each respective insurance company will pay for the damages to their respective drivers involved in an accident, whether at fault or not.

The two primary reasons states offer No Fault insurance are to ensure all drivers have access to immediate medical care following an accident, without questions and to decrease lawsuits.

No Fault insurance limits settlement amounts that may be obtained by clients in lawsuits filed after an accident. All parties involved are deemed ” not at fault,” no matter who is responsible for the accident.

In some cases, the cost of no-fault insurance raises the amount of insurance premiums for everyone. Because the insurance companies have to pay out, whether or not their insured is at fault in an accident or not, this type of insurance actually punishes those who have a good driving record while rewarding those who have a poor driving record or are reckless. If you live in one of the states where there is no-fault automobile insurance, make sure that you shop around for the cheapest premiums.

Under No fault insurance, each party involved in an accident is required to file a claim with their insurance company. This is aimed at eliminating the abuse of unnecessary medical testing. Following accidents, some drivers will go to chiropractors for years in hopes of obtaining a significant settlement in a lawsuit. No fault insurance eliminates abuse of the medical and legal systems and allows those who need treatment to seek medical attention for injuries.

There are good and bad qualities to No fault automobile insurance because it there is no incentive for safe drivers to gain safe driver discounts.

However, it does manage to cut down on frivolous lawsuits and unnecessary medical costs and insures that anyone in an accident can receive the medical attention they need.