No-Fault Auto Insurance Author:    Posted under: Auto InsuranceAuto Insurance Types

In today’s economic difficulties, certain aspects of our daily lives are being compromised just to meet the more important demands of everyday living. We weigh things and let go of what we think are not so essential and hold on to what is basic.

One of the most sacrificed is car insurance or any other insurance for that matter. With car insurance companies charging so much, it is no wonder that individuals choose to go unprotected. They’d rather use the money for basic everyday living necessity than pay a horrendous amount of money to insurance providers.

The NO-FAULT Insurance aims to lower car insurance coverage premiums and keep individuals protected. Some states even require motorists to get No-fault insurance. But sad to say, No-Fault Insurance does not really lower the premium cost of car insurances. It does, however, speed up monetary compensation claims.

No-Fault Insurance is a kind of car insurance policy that pays the benefits regardless of who’s at fault. If you were in an accident and had injuries or damage in your car, you can get compensated right away by your own insurance provider without having to wait for the court’s decision of who caused the accident or for the at-fault insurer to pay up.

But regardless of how advantageous we may see this, it has disadvantages too. First, it limits your claim to the amount stated in your policy. Also, it only pays for medical bills and lost income and sometimes damage to your vehicle.

Some states have already modified this part of the policy so that the injured party can still sue the at-fault driver. This will cover the serious physical injuries and hospitalizations. Another disadvantage would be liability issues. With the No-Fault policy, the at-fault party doesn’t take responsibility for the accident.

If you are the injured party and you’ve exhausted your insurance coverage, you might not be able sue the at-fault party for additional damages. But this part of the policy varies from state-to-state. Some still maintain a certain amount limit to be paid for medical expenses only.

In states where suing for additional damages are allowed, abusers are rising in numbers. If you are the at-fault driver and being sued, this might drain your pocket immensely. You have to watch out for scammers and abusers who will testify just to get money from you.

Some experts say that the better choice for car insurance is still to get full coverage. The process may take longer but the system works better in full-coverage policy.


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