Having no-fault auto insurance is good because it speeds up the claims process by requiring the insurance companies of both drivers to pay for the injuries. Various states are considered no-fault, which means that their car insurance companies don‘t leave one person paying for the damages done. If you live in a no-fault state, then neither driver is completely at fault, this doesn’t mean there is no one responsible. It just ensures that all expenses are paid for — sometimes one driver doesn’t have enough. So no matter who is at fault, the insurance company pays for the accident. Although, if you don’t get coverage that protects yourself, you won’t be covered for medical expenses if another driver is the cause of the accident. The insurance the other driver has only covers them, not you.
Personal Injury Protection Requirements
In a no-fault state, it is required that all drivers have PIP, or personal injury protection. Each state has it’s own requirements for how much coverage you need to have on your PIP, so make sure to check with yours to see what’s mandatory. In most cases, the policyholder that resides in a state with no-fault insurance would receive reimbursements for loss wages, medical expenses and other expenses related to injuries. The policyholder usually isn’t allowed to try to sue the driver that caused the accident for more money. Then depending on the state’s laws, the individuals that were injured while driving in the car with you will either be covered by your policy or their own insurance policy. There are 24 states that grant policyholders the ability to receive money for car collisions from the auto insurance company they’re insured with.
Out of those 24 states, half of them are considered no-fault due to the fact that their insurance laws place a limit on when the insurance holder is able to sue the driver that caused the auto collision. In some cases, the guidelines are based on “monetary threshold”, which is when the expenses are higher than a specified dollar amount. Sometimes it is based on a “verbal threshold”, which allows the individual to sue if the auto accident caused a permanent disability, death or disfigurement. In some states, drivers can seek payment for non-economic losses, like pain and suffering. Some of the true no-fault states are Michigan, Minnesota, New Jersey, New York, Utah, Pennsylvania, North Dakota, Hawaii, Kansas, Kentucky, Florida and Massachusetts.
Option of Purchasing Liability Coverage
Yes, insurance companies that are no-fault do give the driver privilege to sue, but drivers that have the fault of the accident may be required to pay for the expenses that exceeds the PIP coverage of the injured person. For instance, drivers in Minnesota have to have bodily injury and property damage liability coverage in order to handle the expenses that go over the PIP coverage of the injured individual. Then in Pennsylvania and New Jersey, drivers have the option of buying PIP coverage or bodily injury protection, which will cover the expenses based on who caused the car accident. Those that buy PIP coverage in Kentucky have the option of buying back the right to sue another motorist; in order for this to be done, more will have to be paid for the bodily injury protection. Having PIP is a good pick, especially with all of the uninsured drivers on the road these days. It gives you the assurance that your expenses will be covered no matter what.
PIP Doesn’t Cover Personal Property Damage
The coverage you receive in a no-fault state only protects you from personal injury, not personal property or damages done to the vehicle. So in order to protect yourself, you should consider purchasing comprehensive and collision coverage for your vehicle this will ensure that your vehicle and the bodies in your vehicle will have expenses paid for the damages and injuries. Then for even more protection, you can purchase property damage liability coverage, which will cover the expenses you’re responsible for in an auto accident.
It’s always a good idea to check with your state to see what type of insurance protection is mandatory. But just to be extra careful, it’s usually a good idea to purchase above what’s mandatory — some states have low minimums that don’t even cover a lot of the collisions that take place within the state. So drive safe and buy smart with enough coverage to protect you financially. There are various websites available to help you find the right deal for your automobile insurance.
Having the proper coverage is essential for protecting yourself and your family. If you’re traveling around with children, you can keep them occupied by purchasing items from Toys R Us. The less distractions there are, the lower the chance of getting into an accident.