No-fault insurance is a form of insurance coverage in which an insured person’s injury or property damage is compensated for regardless of who was at fault. No-fault insurance is often available with personal injury insurance coverage, but it can also get added as a separate type of coverage.
Types of Policies
No-fault insurance is generally available in the United States through three types of policies:
When a driver has this insurance, he or she pays a premium to cover injuries and damage from other motorists who crash into them. No-fault insurance coverage is available as an option in most states, but some states require drivers to opt-out of no-fault coverage rather than to opt into it.
Personal Injury Protection
This describes a policy that pays for a person’s injuries and property damage, regardless of who was at fault. Personal injury protection is generally required in all states.
Uninsured or Underinsured Motorist Coverage (UM)
This is a policy that pays for injuries and damage from other motorists who crash into them. UM insurance is optional in all states, but many states require it.
What Does No-Fault Mean?
No-fault means that the insurance company will pay for the person’s medical expenses and property damage regardless of whether another driver was at fault.
How Is No-Fault Insurance Different Than Other Types Of Insurance?
People who purchase no-fault insurance must file a claim against their own insurance company first, even if they were not responsible for the accident. Only if their claim gets denied or the amount they receive is less than they expect can the person file a lawsuit against anyone else involved in the accident.
In personal injury claims, the insured is paid a percentage of whatever amount the insurance company and the other driver agree upon. In no-fault cases, however, the payment is set by law or by the insurance company’s policy.
How Much Does No-Fault Insurance Cost?
To purchase no-fault automobile insurance coverage as an option, a driver must pay for additional coverage in addition to his regular auto insurance premium. In states that mandate this coverage, it is usually inexpensive, but in other states where no-fault insurance is not in requirement, it can be quite expensive.
Can I Opt Out of No-Fault Insurance?
In most cases, drivers can opt-out of no-fault insurance rather than opting into it. If a driver does not purchase this optional insurance, he can only claim against his insurer or the other driver’s insurer if there is a settlement. However, if someone else is at fault for the accident, that person can sue the insured or the other driver for damages.
Does Every State Require No-Fault Insurance?
A few jurisdictions in the United States are no-fault states: Alaska, Florida, Hawaii, Kansas and Kentucky. Drivers in these states might be covered under their policy or another driver’s policy for damage to their vehicle and are free to pursue reimbursement from any responsible party if they were injured or suffered property damage.
Does No-Fault Insurance Cover Pain And Suffering?
No-fault insurance payouts are generally not high enough to cover all of the property damage, costs for injuries and lost wages. If a driver has been injured in a wreck and needs more money to pay for medical bills, he may want to consider contacting a lawyer to discuss his options. A personal injury lawsuit may be an option for you if your injuries are serious and you expect high medical bills or lost wages.
What if the Other Driver Is Uninsured?
If another driver is driving without insurance, he may be able to collect on a settlement even if it is his fault. Suppose you got injured in an automobile accident and your no-fault insurance policy provided only limited coverage. In that case, you may be able to file a lawsuit against the at-fault driver or another responsible party. They can also get sued for damages in a civil court.
No-fault insurance means you can apply for compensation under your policy if you were injured or suffered property damage in an accident. If your injuries are serious, however, you may need to file a personal injury lawsuit. Contact The Sigalov Firm PLLC today to talk to an attorney about your legal options.