What Does No-Fault Insurance Mean And Work?

By Sharon Gibson Posted in Car Insurance News

Can I Live With No-Fault Insurance

No-fault insurance is a type of car insurance coverage that does away with the “fault-finding” process common in car insurance claims. In most traditional car insurance policies, when reporting an accident, there is a legal process with the other involved party to establish who is at-fault.

With no-fault insurance, the insurance company can immediately compensate a claimant when a valid claim is filed, and then pursues the other party later, if it is necessary or possible. Basically, no-fault insurance refers to car insurance that requires a driver to have coverage for their own protection and places limitations on their ability to file claim against the other driver involved in the accident.

However, no-fault insurance does not replace health insurance. If you are injured in a car accident, no-fault coverage will “pick up” what your health insurance will not cover, such as co-pays and fees not covered by the health plan.

Considering No-Fault Insurance

The purpose of no-fault insurance is that it provides basic medical coverage for those injured in car accidents. Oftentimes, victims were unable to obtain treatment they may require. No-fault car insurance ensures there is coverage available right away for those involved in the car accident.

If you are considering no-fault insurance, you may want to consider checking around for an insurance company that can make sure you get the best coverage possible to meet all your required needs for coverage.

Remember if a state allows for no-fault car insurance, there are many factors to understand before deciding that no-fault is the right insurance coverage for you. In some cases, full coverage or other types of coverage may be in your best interest. For example, if you have had accidents in the past or other citations, no-fault insurance coverage may not be to most beneficial coverage for you or other drivers of the vehicle.

Related posts:

  1. How Does The Process Of A Car Insurance Claim Work?
  2. Do You Need Car Insurance In A No Fault State?
  3. What Is Personal Injury Protection For Car Insurance?
  4. How Florida No-Fault Auto Insurance Laws Work
  5. How Do I File An Auto Accident Personal Injury Insurance Claim?

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