no fault auto insurance
What Is No Fault Auto Insurance?
Unlike liability auto insurance, no fault auto insurance does not impose a strict fault standard for accidents. This means that even if Tom was at fault in an accident, his insurance will still cover the medical expenses of those who were injured. No fault auto insurance is not cheap, but it is more reasonable than traditional insurance policies. auto insurance quotes comparison
Under no fault auto insurance, the insurance company pays for the damages to your car and other property, but you have limited rights to sue unless you are the one who was at fault in an accident. Depending on your state, there may be monetary or verbal thresholds for injuries. These thresholds vary between states, but they are typically based on how severe the injury is.
In addition to the no fault insurance policy, you may want to consider additional no fault benefits. For example, your auto insurance might cover medical expenses up to the limits of your policy. Your auto insurance may also cover third-party claims. In no-fault states, you may want to consider adding uninsured motorist coverage or underinsured motorist coverage to your policy.
No fault auto insurance is expensive, but it is worth the price if you are ever involved in a car accident. It pays for medical expenses, lost wages, and funeral expenses. Most policies have minimum coverage limits for each party. No fault auto insurance pays up to those limits and more. The only downside is that you still have to pay the deductible if you are at fault.
A study by RAND Corp. showed that no-fault insurance is more expensive in some states, and some jurisdictions have the highest automobile-insurance premiums in the country. Despite this, the financial savings may make no-fault more popular. The high rates also increase the likelihood of uninsured drivers.
The minimum personal injury protection coverage amount required by each state varies, but it usually amounts to around $10,000, $20,000, or even $50,000. This amount also applies to bodily injury liability and property damage liability. The next step is to decide if you will file a claim, which may be necessary if the other driver was at fault.
Some states offer both types of no fault auto insurance. You can decide which one is right for you based on the state you live in. Just remember to ask your insurance provider before signing anything. If you’re unsure, don’t forget to read the fine print and make sure to understand the differences.
If you live in a no-fault state, check with the state transportation agency to determine the requirements for no fault coverage. You should also check with your insurance provider to find out if no fault insurance is required.