A Road accident can happen to any driver no matter how careful one is. It’s unpredictable whether a driver arrives at the destination safely and sound without getting injured on the road despite the distance one drives. This is where no-fault insurance comes in handy. It covers the medical costs of a driver after getting injured in an auto accident regardless of who was at fault. This auto insurance is allowed in various states, and drivers must have personal injury protection to sue other drivers.
How No-Fault Insurance Works
No-fault insurance covers medical bills after one gets injured in an accident. A person’s insurance cover is required to pay the medical bills despite who is at fault or the extent of the injuries. However, liability coverage only covers medical bills when the injured person is the one at fault.
No-fault insurance restricts people from filing claims against the suffering caused to other drivers after an accident occurs. However, in some states, vehicle insurance laws allow drivers to seek compensation for serious injuries such as losing a fetus, death, fractured bones, and disfigurement.
Sometimes, drivers are severely injured after an auto accident and can’t work. Hence, in some states, no-fault insurance allows such drivers to cover economic losses apart from medical bills. This is especially true if their medical expenses exceed the monetary tort threshold set by the state to the particular driver. Therefore, a no-fault insurance coverage caters to medical bills for drivers and passengers, but the liability coverage depends on the bodily injury caused by a car accident.
About No-Fault Insurance Claims
A no-fault insurer is responsible for filing an injured person’s no-fault insurance claim to cover medical bills and lost wages caused by an auto accident. However, no-fault insurance rates depend on the state or the insurer. Some states only increase personal injury protection (PIP) if the driver was responsible for the vehicle accident.
Benefits of No-Fault Coverage
After experiencing a car accident, sometimes, it takes longer before the injured drivers are compensated. However, no-fault coverage ensures that drivers are compensated for their injuries sooner. Again, it saves litigation costs incurred by the insurance companies; hence, the drivers pay low insurance charges.
Cost of No-Fault Insurance Coverage
Though some states offer no-fault coverage, the cost differs depending on a person’s location, the insurer, and coverage limits. At-fault states are supposed to offer a higher insurance coverage compared to at-fault states. All no-fault states except Florida provide liability insurance, and drivers also face the cost of personal injury protection. Therefore, drivers get coverage depending on what they pay for personal injury protection. For instance, those who get coverage of $50,000 PIP with a deductible of $200 have a cost of coverage amounting to $277.60 and 22.85% total policy cost.
The above guide helps one understand the benefits and how no-fault insurance works. However, choosing the best no-fault defense law firm that offers professional lawyers to help with no-fault insurance claims would be most beneficial. This way, drivers are guaranteed fair compensation whether they were at fault or not.