Several states in the U.S. have enacted “no-fault” car insurance laws to allow their citizens to accept personal responsibility for car accidents and collect bodily and property damages directly from their own car insurance companies. However, if you live in a no-fault state, you might mistakenly believe that no-fault laws protect you against possible losses incurred after you pay your car insurance deductible.
You might also wrongly believe that since you live in a no-fault state, you don’t have to have car insurance at all because you cannot be sued for damaging another vehicle and driver. You need to know now that these misconceptions can cost you serious money in the event of an accident that was somebody else’s fault – or yours.
The Definition of No-Fault Car Insurance
Under no-fault car insurance, you and the other motorist involved in the accident accept full responsibility for collecting damages incurred from your own insurance company. This includes all damages to your car, and all injuries sustained by all persons inside of the vehicle at the time of the accident. The reason that some states enacted this no-fault law was to relieve the judiciary system of unscrupulous people trying to pin the blame of the car accident onto the other party involved.
Additionally, each no-fault state also specifies the dollar amount paid for lost wages and medical expenses. In theory, no-fault car insurance allows many minor accidents to be handled by auto insurance agencies and not judges and juries. However, in real life, no-fault laws are not as cut-and-dry as you might believe, so its best to know the ins-and-outs of no-fault car insurance policies as opposed to traditional car insurance policies before you get one.
No-Fault Versus Traditional Car Insurance
When you have traditional car insurance, if you cause an accident, you are responsible for all damages incurred by the other party, and vice versa. At first glance, this is a fair practice that protects the blameless party from any repercussions arising from the accident. However, no-fault insurance does not protect you from all the consequences resulting from an accident.
Unfortunately, most auto insurance companies raise your rates after you’ve been in an accident – whether it was your fault or not, and whether you have no-fault or traditional insurance. Furthermore, it isn’t always easy to tell which party caused the accident. So, in addition to your car insurance deductible, you might also have to pay the legal fees associated with a car accident court case, and wait weeks, months or even years to get the money that you deserve.
On the other hand, having no-fault insurance might be better than having traditional insurance. In fact, even renowned consumer advocate Ralph Nader was a major supporter of no-fault car insurance laws when they were being ratified by numerous states several years ago. However, the basics of no-fault laws vary widely from state to state. No state has a pure no-fault car insurance law. That means that under no-fault law, you can still bring the offending party to court if you are severely injured, or if the other person’s action that led to the accident was deliberate or unusually negligent.
Finally, no-fault car insurance laws do not excuse you from not carrying car insurance on your vehicle. If you do not have insurance in a no-fault state, it is solely your fault if you cause an accident. You can be sued for the maximum amount allowed by law for the bodily injury and property damage that you inflict on another person or persons.
How To Find The Best No-Fault Car Insurance Policy
It’s easy to find the best no-fault car insurance policy at My Car Insurance Rates. Simply input your zip code, name, address, age, gender and driving history, and we provide instant free car insurance quotes from multiple auto insurance companies, such as Nationwide, Allstate, GEICO, Progressive, 21st Century Insurance, Liberty Mutual, State Farm, Farmers Insurance, AAA, AARP, and Esurance. You’ll automatically receive a no-fault insurance quote if your state requires it, and will see a side-by-side comparison of how much coverage you can get for the protection you need, at a rate you can easily afford.
Now that you know that you still can be sued under a no-fault law, MyCarInsuranceRates.com will help you decide if you need the minimum coverage, or if you can afford to get extra just in case you need it.
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