Most people are familiar with such terms as no-fault insurance, while others may only come across them after being involved in car accidents. As the name suggests, no-fault insurance is a kind of auto insurance covering the medical bill in the case of an accident, regardless of who caused it.
The coverage was created to save on litigation expenses when two parties are trying to establish who among them was at fault. Below are some of the things that your no-fault insurance attorney should make you aware of.
How Does it Work?
As aforementioned, this type of insurance covers your hospital bills in the unfortunate event of an accident, no matter who is at fault. Your insurance provider caters to these costs. One aspect of the no-fault insurance is the restriction of individuals' rights to sue. However, some states allow drivers to seek compensation for serious injuries, which may include:
Loss of unborn baby
There are no-fault states that permit drivers to file lawsuits for economic losses after settling their medical expenses or losing wages exceeding a certain monetary threshold.
What Are No-fault Insurance Claims?
After an accident, you are required to file a no-fault insurance claim with your insurance provider to cover medical expenses and any wage losses that may result from the injury. Filing a no-fault Personal Injury Protection could escalate your rates, but this is dependent on your state and insurer. In some states, your car insurance rates can't go high for an accident you didn't commit.
Is No-fault Coverage Necessary?
The no-fault insurance laws came into mandate after establishing that they eliminate the numerous litigation costs around proving who was at fault after an accident. In doing so, the savings are passed to driers in the form of lower-priced premiums.
Besides this advantage, the no-fault coverage also reduces the amount of time injured people have to wait to receive treatment money.
What Is the Cost of No-fault Insurance?
There is no standard cost of this type of insurance, as it depends on coverage limits, your location, and the insurer. Although theoretically, no-fault coverage is meant to lower insurance costs, this isn't the case in practice. This is evident in the fact that rates are higher in no-fault states than in the at-fault states.
If you live in a no-fault state, you should seek representation from a reputable no-fault insurance attorney if you ever get involved in an accident. They will ensure your rights are upheld.