If you live in one of the dozen states that require no fault car accident insurance, you may be glad to know that your insurer will compensate you for wage loss and medical bills even if you are at fault for the accident. It is important to know your rights and obligations under the system before you file a no fault car accident claim.
The Differences Between No Fault and Tort Liability Insurance
Before you file an accident claim, it is best to contact a lawyer. The attorney will be able to tell you if you live in a no fault state and will help you receive fair compensation for your injuries.
Most states follow a "fault" or tort based system of auto insurance. This means that an injured person can file a civil suit against a negligent driver for non-criminal wrongdoing. In the suit he can ask to be compensated for medical bills and property damage. He can also ask for non-monetary damages for pain and suffering and emotional distress.
In a no fault system your insurance company will pay for your medical bills and wage loss up to the limits of your policy, but the law restricts you when it comes to receiving compensation for non-economic damages for pain and suffering or emotional distress. You will only be allowed to sue for non-economic damages in a no fault state if you meet the state's "tort threshold". No fault states utilize either an economic or a verbal legal threshold to determine if a person can file a lawsuit for damages.
Pennsylvania, Kentucky and New Jersey allow consumers the option of either purchasing tort liability insurance or no fault car accident insurance.
Economic Tort Thresholds
An economic threshold is met by adding up the injured party's medical bills and reaching, or exceeding an exact dollar figure required by state law. For instance, in the state of Hawaii, one must have $10,000 in medical bills to file suit. In Minnesota, the monetary threshold is $4,000.
Verbal Tort Thresholds
Some states have tort thresholds that are described in verbal or qualitative terms. The terms differ in every state, but generally describe injuries of a more serious nature, such as bone fractures, loss of use of a body part, scarring, long term disability, disfigurement or death.
Mandatory Personal Injury Protection
Each no-fault state mandates the minimum amount of Personal Injury Protection ("PIP") you must carry. It may be wise to purchase extra coverage if you don't have health insurance or want to be protected if you are injured by a driver who has no liability insurance.
PIP will pay for medical and rehabilitation bills as well as for lost wages and cremation or burial expenses. PIP covers you and all relatives living in your household who are involved in a no fault car accident. The plan covers all injured passengers in your vehicle. It even provides protection if you or your family members are injured while riding in someone else's vehicle.
Obtaining Legal Counsel for Your Accident Claim
Only an attorney is qualified to provide legal advice regarding fault or no fault car accident claims in your state. He can guide you through the claim process and help you obtain fair compensation for your injuries.
