No-Fault Insurance

Have you heard of no-fault insurance? Well, if you have not, then you need to learn more about it. This type of insurance might be the perfect type for you. In an effort to help you, here is some information that will hopefully help you decide whether or not no-fault insurance is right for you. It will help you make the best insurance decision possible down the road.

Basic Information

No-fault insurance is not available in every state. There are generally no-fault states and choice states. This type of insurance places a limit on the ability the carrier has to sue other drivers for damages. Essentially, whenever you have an accident in a state that is no-fault, your insurance company will pay for the injuries that you have as a result pf the accident. This can really turn out to be helpful.

Difference Between No-Fault and Choice

If you get hit in a no-fault state then your insurance company will pay to fix your car. They then have the option of going to the other person’s insurance company if they believe that the accident is their fault. Other drivers who happen to be involved in the accident will be covered by their own policies.

Choice states are a bit different. If you get hit in a choice state then you have a few options. Your first option is to have your insurance company fix the damages, but if you want you can go with the second option, which is leaving your insurance company out of the process. You can just have the other driver’s insurance handle the problem. This way you do not have to worry about actually reporting the accident to your company. This often saves you a deductible.

The real idea of no-fault is to stop people from suing the other party after an accident, but, there is no pure no-fault system at the moment. States do not want to deny their citizens the right they have to sue. This is why they set up the no-fault and the choice systems.

Get All the Facts

If you live in a state that offers this type of insurance, then get all the facts before making your decision about insurance. This type may work for you, and it may have great benefits. Learn as much as you can, then make your decision.

Additional Resources:

• New No-Fault Insurance Bill to be Topic
• No Fault Insurance