No-Fault Insurance – How to Make Use of It?

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After a car accident takes place, there may or may not be any injured parties. However, one will always be able to identify the party at fault and the party that cannot be blamed for the accident.

Still, as your personal injury lawyer might have told you, you’ll have to support your claim via evidence if you want to see the insurance company pay out damages for your injuries.

The good news here is that, if you’re a citizen of the 13 US states that we’ll soon mention, you’re eligible for no-fault insurance – which translates to an instant damages’ payout made by your own insurance company!

The Basic Concepts of No-Fault Insurance

Any driver that has been involved in an accident can seek no-fault insurance damages only if the other driver involved is the one strictly and solely responsible for the accident – via obvious negligence. 

  • As mentioned above, 13 US states have laws that allow insurance companies to have no-fault policies by default. This means, that instead of going after the insurance provider of the other driver, you file a claim with your own company.
  • After doing so, you will not risk having to settle your claim or go to court with it – your insurance provider has to award you damages for the suffered injuries.
  • This comes in very handy to drivers because the policy is already based on the fault of the other driver, so you won’t have to gather evidence and present it to the court or insurance providers.
  • Naturally, there is a downside to this type of insurance. Namely, while instant damage payout sounds quite good, the amount that you are paid is limited by your current insurance policy – which may not take all types of injuries into account. The end result could be a poorly valued settlement for you.

What is the Purpose of Such Insurance?

The main and most important purpose of this insurance is to avoid waste of time, resources, and money with court cases, court filings, claims, lawyers, and evidence.

This is because, when you file for no-fault insurance, none of the drivers involved in the accident have to pay any of the costs associated with insurance claims, litigation, lawyer fees, court fees, and so on.

Obviously, the injured driver will want to have a lawyer by their side, to determine whether the no-fault policy is fair for them or not.

How Is this Insurance for Providers?

First of all, it is worth mentioning that insurance providers pay no-fault damages much faster, as there’s no complex process behind such a policy. However, they have one other benefit as well.

Namely, the payout of no-fault insurance ensures the insurance companies that the drivers involved in the accident will not enter any future disputes, thus filing claims against their providers. 

How to Make Use of No-Fault Insurance?

In order to be covered by no-fault insurance, you just have to be insured in one of the following 13 states, namely: Pennsylvania, Columbia, Utah, Florida, North Dakota, Hawaii, New York, Kansas, New Jersey, Kentucky, Minnesota, Massachusetts, Michigan.

The insurance companies operating in these states are required by law to have their policies equipped with no-fault insurance.

The Bottom Line

In short, no-fault insurance means that, if the other driver’s fault is obvious, you can simply go and cash in an insurance payment without filing claims and hiring lawyers to help you win a case.

Such insurance pretty much prevents court cases and long settlement sessions from happening. Naturally, you have to make sure that the no-fault payment is satisfactory, or else you may want to consult with a personal injury lawyer!

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