Get Cheap No-Fault Auto Insurance Policy Coverage

Most states have the traditional fault-based auto insurance policy system. Currently, New York, New Jersey, Washington DC, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, North Dakota, Pennsylvania, and Utah operate under the no-fault auto insurance policy system, also known as Personal Injury Protection (PIP). According to the Insurance Information Institute (III), a no-fault auto insurance policy allows each policyholder to recover financial loss from his or her own insurance company following an accident—regardless of fault. The no-fault auto insurance policy system was set up in an attempt to take the fault out of liability and have the accident victims’ medical expenses paid by their own insurance companies. This would reduce the long and costly court battles that may be required to determine who was at fault in an accident.

Some of the no-fault states also have limited tort, restricting the right to sue in an accident. Under a no-fault auto insurance policy system, when you have an accident, your auto insurance policy provider automatically pays for your damages (regardless of fault) up to a specified limit. In exchange for this guaranteed payment, you must forego some of your rights to sue the other driver involved in the accident. You are also protected from being sued in the event you are at fault in an accident.

Monetary limits and medical benefit limits of the no-fault auto insurance policy system can vary widely depending upon in which state you buy an auto insurance policy. In states with higher than average PIP benefits, fraud is a constant problem. Fraud rings claim phony and expensive medical treatments, causing auto insurance rates to go up for everyone in those states. A no-fault auto insurance still carries some of the highest auto insurance rates in the nation—and the highest instances of fraud and abuse. Inadequate regulation and flawed no-fault auto insurance policy laws may be the two major reasons why New Yorkers pay the second highest auto insurance rates in the country. A no-fault auto insurance policy can also be expensive due to many liability issues. Presently, there are no ’pure’ no-fault systems or policies which completely cover all costs regardless of fault and prevent all lawsuits. Instead, a blend of traditional and no-fault systems gives drivers coverage for certain types types of damage and protection against many, but not all, lawsuits.