States With No Fault Car Accident Funds or Associations: How To File Claims

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Under the law in the United States, it is necessary for the owner of a vehicle to have insurance. Failure to do so carries hefty fines and sanctions. There are, however, two different systems of car insurance available to the public – fault and no fault. In America, 12 states have adopted a no-fault system. Under it, depending on who you listen to, filing a no fault car accident claim is either equitable or unfair to good drivers.

What Is A No Fault Insurance System

No fault insurance is a system in which neither driver is said to be at fault for the accident. Each of the drivers, and therefore their insurance providers, accepts blame. The money to repair or replace the vehicles and pay for lost wages and medical bills must come from each person’s insurance company. So-called “frivolous” suing of the other individual’s provider is not permissible except in certain circumstances. These will depend upon the specific state form of no fault accident insurance.

No state has a pure no fault insurance system. The closest manifestation of this is in Michigan. In no fault states, e.g. Florida, Hawaii, Kansas, Kentucky or North Dakota, there is either a verbal or monetary threshold on a no fault car accident claim. A verbal threshold places a cap on what types of personal injury an individual can file a no fault accident claim. In other no fault insurance states such as Kansas and Utah, there is a monetary threshold on the damages an individual can seek in a no fault accident claim before filing a suit.

No Fault In Michigan

Michigan is the closest to a pure no fault system. In Michigan, a driver who feels the other vehicle was at fault can only sue if:

  • The accident results in death
  • The accident produces disability
  • There is a loss of any bodily function

Moreover, in Michigan, if you qualify, you can claim over the states serious injury threshold. In such an instance, while the insurance company pays the entire amount of the claim after which the Michigan Catastrophic Claims Association (MCCA) assumes responsibility for the paying the insurance company money in excess of the cap of $480,000.

Filing a claim requires working through your insurance agent first. For further information, talk to your insurance provider and an attorney

Consult An Attorney

If you have any doubt as to the validity of your claim, talk to a professional car accident attorney. He or she can help you with your no fault car accident claim.