No-fault car insurance law can be easily misunderstood, and also is applied differently in every state that offers it. If you are in an auto accident, you should contact an experienced personal injury firm to discuss how the relevant state law views fault and to determine how fault or no-fault laws may affect your right to recover damages for injuries.

No-fault laws were created by state governments to ease the burden on courts and get motorists back on the road. No-fault insurance pays your medical bills and other items such as lost wages regardless of whose fault the accident was. Your insurance company will pay your medical expenses and those of the other occupants of your car. No-fault states have limits on liability, even for your basic economic damages. These limits result in people being forced to pay for any unpaid medical bills without recourse against the driver who caused the injuries.

No-fault car insurance is a fix to the traditional tort system which allows the wronged party to sue the driver responsible for the accident to recover for bodily injuries. Under a no-fault system, no one is allowed to sue anyone. No-fault states set limits for liability, for basic economic damages which result in drivers being forced to pay any unpaid medical bills without being able to sue the driver who caused the accident. No-fault auto insurance policies often have a cap on the compensation they will pay.

The liability portion of the no-fault automobile insurance coverage is the one insurance coverage that is required in all states. Other types of automobile insurance coverage include collision or accident; comprehensive for fire, theft, or other non-collision losses; medical expenses; uninsured/underinsured motorist; and gap insurance to cover the difference between the actual cash value and loan value that is owed for a vehicle. Liability coverage (which is the state mandated part of your policy) is the basic building block of any car insurance policy, and minimum liability limits vary from state to state.

Since the establishment of no-fault car insurance in many states, no-fault advocates have bolstered their cause even more by pointing to statistics showing that no-fault insurance plans increase the percentage of insurance benefits payments that go to victims rather than to lawyers and to court costs.

Technorati Tags: car insurance policy, no fault car insurance, No fault auto insurance, car insurance

Next Post: Questionable Car Insurance Practices - Part 1