No Fault Car Insurance

Some states have decided to adopt a no fault car insurance system, where it is required to have minimum insurance in case you’re injured. Under this system, your car insurance pays for your damages automatically, whether you were at fault or not. In theory, this keeps insurance costs down and makes the claim process more efficient. The states that are presently requiring this type of insurance are: Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

No-fault car insurance (also called “personal injury protection” or “PIP”) basically works like this:

• It pays for your medical bills and lost wages up to a limit stated on your policy
• Pain and suffering, along with medical bills that surpass your coverage limit, will not be paid
  
• If your medical bills and lost wages are greater than the limit on your insurance, you can sue the person at fault for the rest (under certain circumstances; rules vary by state). Some states limit this process only to serious injuries (broken bones, severed limbs, internal injuries, etc.)

There is also another hybrid system called “choice no fault,” where you may choose to be insured under no fault, or you can choose not to. If you choose to, though, you cannot sue a liable driver and you cannot be sued. The same happens with the other option, where you have the right to choose but run the risk of being sued as well.

Regardless of what type of insurance you opt for, you should consult with an experienced attorney is you are unsure of insurance matters in case of an accident.

• If you need legal assistance with an Auto Injury Claim, please consult with a Car Accident Lawyer near you to discuss the details of your case. The content of this article is provided for informational purposes only.