You may
live in a state with no-fault auto insurance. You need to understand what
it is and how it protects you.
No-fault laws require drivers to carry insurance for
their own protection. Limitations are set on the ability to sue other
drivers for other damages.
First, you need to know if you live
in a no-fault, tort or choice state. Laws vary from state to state. When
you have an accident in a tort or no-fault state, your insurance company
will pay for the injuries you sustain.
If someone hits your car in a
no-fault state, your insurance company will pay to fix your car and then
go after the other guy's insurance company if they believe it was his
fault. Any other drivers involved are covered by their own auto insurance
policies.
In a torte state, you can have your
insurance company repair your vehicle. Or you can have the other driver's
company handle the details. If you do the latter, you don't have to worry
about reporting the accident to your insurance company or pay a
deductible.
No-fault is a fix to the traditional
tort system which allows the wronged party to sue the driver responsible
for the accident to recover for bodily injuries. Under a no-fault system,
no one is allowed to sue anyone. However, most states have adapted the
system as to not remove your right to sue. Most states combine no-fault
with tort systems and permit lawsuits in certain cases.
Find out what kind of system your
state has to better understand what type of coverage you need.
