No Fault Car Insurance
Many states have enacted no-fault car insurance laws. The term “No Fault Car Insurance” is widely known by most drivers however it should never be assumed that no fault car insurance is blanket protection to indemnify drivers from all liability in a car accident.
The reason states implemented no fault car insurance laws were to help insurance companies limit liability, provide drivers easier access to claim processing and reduce government manpower to assess liability. The laws were passed with the intention that car insurance companies would benefit from the laws and help maintain affordable car insurance premiums.
No fault car insurance is essentially a way to process liability and not a replacement for car insurance. There are many ways a driver involved in a car accident can quickly realize he is still subject to liability even with no fault car insurance.
RESPONSIBILITY
Someone has to bear responsibility for every car accident and because monetary damages are almost always involved (from a small brake on the bumper to more serious accidents which involve medical expenses) liability is a key factor to help determine who will pay the bills. Although identifying the driver at fault in often very easy the courts still need to determine who was at fault should a driver not assume liability. This legal assessment not only costs millions of taxpayers money, court time but can often last for years.
No fault car insurance laws help streamline the liability process by eliminating the issue of fault so each driver shares equally in the liability equation for assessing fault.
“No fault car insurance means: In the event of a car accident each parties respective car insurance companies will pay claims for damages relating to their vehicles.”
RESTRICTIONS TO SUE
In most states no fault car insurance also prevent drivers from suing each other and many industry experts believe this single element has been a critical factor in maintaining affordable car insurance rates year after year. Some states with no fault car insurance laws do have exceptions for minor accidents however all states allow injured parties to file suit should serious injuries occur or the offending action was deliberate or extremely negligent. Basically, the ability to sue for silly, small items has been removed from most states which many drivers will attest is both logical and an efficient use of laws.
“All states allow injured parties to file suit should serious injuries occur or the offending action was deliberate or extremely negligent”
No Insurance – “No Fault can mean Your Fault”
As we stated above no fault car insurance is not a substitution for state minimum car insurance requirements so every drivers still needs auto insurance coverage. In most no-fault states you can still and will be held liable for damages to another driver should you not have auto insurance. Learn more about what happens if you have no car insurance here.
The auto insurance is heavily regulated but any wise driver should educate themselves with state laws well ahead of buying a car. Car insurance quotes for states with “no-fault” car insurance are very competitive so use our ZIP CODE search to find local car insurance companies and get a FREE quote today.
