AUTO INSURANCE ARTICLE
No-Fault Auto Insurance
By: SpeedWagonNo-fault insurance is a word with the intention of describes the automobile insurance system in states where an insured driver's policy pays for injuries that occur in an accident, no matter who was at fault in the accident. If you live in a no-fault state and do not buy coverage to guard yourself, your medical expenses will not be covered if a new person causes the accident. Their insurance only protects them – not you.
Personal Injury Protection (PIP)
The coverage that is purchased in a no-fault state is called Personal Injury Protection, or PIP. The amount and type of PIP coverage varies considerably by state. In common, a policyholder in a no-fault state would be reimbursed on behalf of medical expenses, loss of wages and other injury-related expenses, and they are frequently not allowed to charge for extra money from the person who caused the occurrence. Other insured drivers who are injured while in your car may perhaps be covered by their own policy or by your policy, depending on state laws.
Twenty-four states, including the District of Columbia, obtain laws with the intention of allow policyholders to acquire payment for auto accidents from their own insurers. Of these, the 12 states listed less than are considered true "no-fault states" because the insurance laws limit while policyholders may charge the person who caused the accident. The guidelines in support of suing are either based on a "monetary threshold" which means that the expenses exceed a certain dollar amount or a "verbal threshold" which permits a lawsuit when the injuries result in death, permanent disability or disfigurement. Additionally, some states allow drivers to seek payment for "non-economic losses" such as pain and suffering. States that are considered true no-fault states include Hawaii, Florida, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Buying Liability coverage is also an option.
While no-fault insurance limits the exact of an injured driver to sue, at-fault drivers may be responsible for expenses over the limit of the injured person's Personal Injury Protection coverage. For example, in Minnesota, drivers are required to obtain bodily injury and property damage liability coverage to cover the costs that exceed the amount of PIP coverage an injured may have.
In New Jersey and Pennsylvania, drivers could take to purchase Personal Injury Protection coverage or Bodily Injury Liability coverage, which pays for injuries based on who is at fault for the accident. In Kentucky, when drivers buy PIP coverage, they can also "buy back" the right to sue another driver, by paying more for bodily injury liability coverage. With the increase in the number of uninsured drivers on the road, especially in urban areas, buying Personal Injury Protection often provides a better value because you have the assurance that you will have coverage for your own expenses.
Injure to personal property is not covered by PIP coverage
No-fault laws only apply to personal injury. Damage to your car or to other personal property is not covered by no-fault insurance, so it's important to protect the value of your car by purchasing Comprehensive and Collision coverage. And, purchasing property damage liability coverage will pay for damage you cause to someone else's property in an auto accident, if you are held responsible for the repairs.
Mandatory coverages vary by state. Your agent or insurance company rep will explain how each coverage works and the choices you have for protecting yourself and your family.
Personal Injury Protection (PIP)
The coverage that is purchased in a no-fault state is called Personal Injury Protection, or PIP. The amount and type of PIP coverage varies considerably by state. In common, a policyholder in a no-fault state would be reimbursed on behalf of medical expenses, loss of wages and other injury-related expenses, and they are frequently not allowed to charge for extra money from the person who caused the occurrence. Other insured drivers who are injured while in your car may perhaps be covered by their own policy or by your policy, depending on state laws.
Twenty-four states, including the District of Columbia, obtain laws with the intention of allow policyholders to acquire payment for auto accidents from their own insurers. Of these, the 12 states listed less than are considered true "no-fault states" because the insurance laws limit while policyholders may charge the person who caused the accident. The guidelines in support of suing are either based on a "monetary threshold" which means that the expenses exceed a certain dollar amount or a "verbal threshold" which permits a lawsuit when the injuries result in death, permanent disability or disfigurement. Additionally, some states allow drivers to seek payment for "non-economic losses" such as pain and suffering. States that are considered true no-fault states include Hawaii, Florida, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Buying Liability coverage is also an option.
While no-fault insurance limits the exact of an injured driver to sue, at-fault drivers may be responsible for expenses over the limit of the injured person's Personal Injury Protection coverage. For example, in Minnesota, drivers are required to obtain bodily injury and property damage liability coverage to cover the costs that exceed the amount of PIP coverage an injured may have.
In New Jersey and Pennsylvania, drivers could take to purchase Personal Injury Protection coverage or Bodily Injury Liability coverage, which pays for injuries based on who is at fault for the accident. In Kentucky, when drivers buy PIP coverage, they can also "buy back" the right to sue another driver, by paying more for bodily injury liability coverage. With the increase in the number of uninsured drivers on the road, especially in urban areas, buying Personal Injury Protection often provides a better value because you have the assurance that you will have coverage for your own expenses.
Injure to personal property is not covered by PIP coverage
No-fault laws only apply to personal injury. Damage to your car or to other personal property is not covered by no-fault insurance, so it's important to protect the value of your car by purchasing Comprehensive and Collision coverage. And, purchasing property damage liability coverage will pay for damage you cause to someone else's property in an auto accident, if you are held responsible for the repairs.
Mandatory coverages vary by state. Your agent or insurance company rep will explain how each coverage works and the choices you have for protecting yourself and your family.
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