The no fault auto insurance plan is used by a mere 13 US states. A foundation based on fault is used by the other states. This establishes how insurance companies will settle their claims. The decision would be based on defining each person's degree of fault.
Determining this is usually lengthy and costly. Plus, it crowds an already overcrowded court system. Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah are the 13 states that use the no-fault insurance system.
With no-fault, your insurance company pays no matter who is at fault. Coverage is provided for the plans limit. Any one else that may have been implicated is protected from any legal action.
Regardless of who is at fault, medical and property expenses are covered. The rationale is to not bog down the court system any further. Caps are placed on pain and suffering but other losses are covered.
There are actually two different types of no-fault insurance. With pure no fault, the insurance company covers costs to the policy limit for medical and loss of wages. But, you forfeit any privileges to take legal action. This system is not in use across the US. It is, in essence, superseded.
The modified no fault is used in the states with no- fault. With this you could possibly bring forth a lawsuit even though your lost wages and damages are covered. Only cases that have a greater degree of damage could come before the courts. This limits the number of cases to go before the courts to serious injuries only.
This plan offers advantages. Claims are paid out much faster, no lawyers are involved, and this results in offering lower insurance premiums. Lawsuits are minimized which is good news for the courts.
There are still some that see fault with the system claiming that if doesn't reward good drivers. Some further state that it doesn't allow proper compensation for pain and suffering. There are pros and cons with either plan.
Determining this is usually lengthy and costly. Plus, it crowds an already overcrowded court system. Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah are the 13 states that use the no-fault insurance system.
With no-fault, your insurance company pays no matter who is at fault. Coverage is provided for the plans limit. Any one else that may have been implicated is protected from any legal action.
Regardless of who is at fault, medical and property expenses are covered. The rationale is to not bog down the court system any further. Caps are placed on pain and suffering but other losses are covered.
There are actually two different types of no-fault insurance. With pure no fault, the insurance company covers costs to the policy limit for medical and loss of wages. But, you forfeit any privileges to take legal action. This system is not in use across the US. It is, in essence, superseded.
The modified no fault is used in the states with no- fault. With this you could possibly bring forth a lawsuit even though your lost wages and damages are covered. Only cases that have a greater degree of damage could come before the courts. This limits the number of cases to go before the courts to serious injuries only.
This plan offers advantages. Claims are paid out much faster, no lawyers are involved, and this results in offering lower insurance premiums. Lawsuits are minimized which is good news for the courts.
There are still some that see fault with the system claiming that if doesn't reward good drivers. Some further state that it doesn't allow proper compensation for pain and suffering. There are pros and cons with either plan.
About the Author:
Get more tips here: Safe Auto Insurance and Really Cheap Auto Insurance. Chimezirim Odimba writes on financial matters.
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