No Fault Car Insurance

No fault car insurance is defined as any type of automobile insurance coverage policy where a policyholder will be reimbursed for losses and damages regardless of fault, but may limit the ability to collect damage awards or settlement through future civil action against other parties. Only twelve states in the United States adhere to the no fault insurance strategy, as well as Puerto Rico. In most cases, any secondary claims against other drivers involved in an accident may only request for damages not already covered by the primary insurer, and in most cases, no allowances for non-economic damages, such as pain and suffering, are allowed under the law, save for grievous cases.

Fast Facts

  • Three states, Kentucky, New Jersey, and Pennsylvania, allow their drivers to elect to carry no fault insurance coverage or the more traditional tort coverage plans.
  • The state of Florida has a no-fault system in place as of the first of the year 2008.

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