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 Posted: Mon Aug 11, 2008 5:46 pm Post subject: what is no-fault insurance |
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Hey guys I am quiet confused with this no-fault insurance .. Can anybody explain me regarding this thing ..? it would be of great help ..
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renditioner
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| Posted: Mon Aug 11, 2008 9:01 pm Post subject: |
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| 'No-fault" means something different in almost every state. So without knowing which state specifically, it's not possible to answer the question. |
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tcope
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| Posted: Tue Aug 12, 2008 5:26 am Post subject: |
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The term no-fault doesn't imply that you can't be held responsible for causing an accident, instead it depicts that in a no-fault state, the insured is required to file claim with his insurer for the damages and injuries caused in an accident.
Well. its only a general explanation.
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Juanita |
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Juanita
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| Posted: Tue Aug 12, 2008 5:31 am Post subject: |
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| A pretty darn good one IMHO. |
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tcope
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| Posted: Tue Aug 12, 2008 5:45 am Post subject: |
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In the no-fault states the insurance companies apply certain fault determination rule to decide the percentage of fault of each party involved in the accident, and if you are adjudged to have contributed sufficiently in the accident you can be declared as the party at-fault.
The purpose of no-fault insurance is to accelerate the claim settlement process, since it allows the parties to file the claims with their insurers without waiting for the identification of the party at-fault. |
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jeorge
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| Posted: Tue Aug 12, 2008 5:51 am Post subject: |
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| Quote: | | A pretty darn good one IMHO. |
Thanks tcope  |
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Juanita
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| Posted: Tue Aug 12, 2008 9:54 am Post subject: |
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| Quote: | | 'No-fault" means something different in almost every state. So without knowing which state specifically, it's not possible to answer the question. |
Absolutely!
To tell you the truth..what I remember of the no-fault laws I could relate them to situations wherein it becomes difficult to judge in an auto-accident as to who was the party at-fault or to what extent.
I'd also like to say in this regard that these laws are related to injuries caused in an accident & not associated with any kinda damages caused to the vehicles. Thus such laws wouldn't permit either parties to file lawsuits for the general damages other than injuries..
We must know the name of the state in order to find out whether we are talking of a state that once followed a pure no-fault system..
Thanks.. Evan |
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evan
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| Posted: Tue Aug 12, 2008 1:50 pm Post subject: |
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| Quote: | | I'd also like to say in this regard that these laws are related to injuries caused in an accident & not associated with any kinda damages caused to the vehicles. |
Except in Michigan, where the no-fault laws do apply to property damage. |
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tcope
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| Posted: Tue Aug 12, 2008 4:46 pm Post subject: |
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| Quote: | | I'd also like to say in this regard that these laws are related to injuries caused in an accident & not associated with any kinda damages caused to the vehicles. Thus such laws wouldn't permit either parties to file lawsuits for the general damages other than injuries.. |
So you mean to say the no-fault insurance is applicable only for bodily injuries but not damages to the vehicles, in general ... 
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renditioner
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| Posted: Wed Aug 13, 2008 7:46 am Post subject: |
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The no-fault state restricts a driver's ability to sue the other driver for the damages suffered by him. Depending upon the definition, a state can be no-fault state or choice state.
The choice state allows the policy holder the choice to purchase a no-fault policy or a tort policy. The tort plan allows the driver to recover his losses from the party at-fault with certain limitation. The no-fault policies are cheaper than the tort plans. The following states are known to have the no-fault insurance law in place,
- Kansas
- Massachusetts
- Michigan
- Minnesota
- North and South Dakota
- New York
- Utah
- And, Hawaii
The purpose of no-fault insurance is to make the claim process fast and smooth, since the drivers will be collecting for the damages under their plans.
Regards,
Juanita
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Juanita
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| Posted: Wed Aug 13, 2008 9:01 am Post subject: |
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| Quote: | | So you mean to say the no-fault insurance is applicable only for bodily injuries but not damages to the vehicles, in general ... |
Rightly so, the medical coverage offered in the no-fault auto insurance is the Personal Injury Protection coverage. It covers the medical expenses of the driver and the passengers of the vehicle regardless of who is at fault. |
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JeremyHolter
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| Posted: Wed Aug 13, 2008 9:47 am Post subject: |
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Hmm.....infact the PIP coverage is mandatory in the no-fault states.
Most of the no-fault states will require you to maintain the minimum of $10,000 limit on the PIP, which can be increased by increasing the premium rates. |
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jeorge
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| Posted: Wed Aug 13, 2008 1:48 pm Post subject: |
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| You can throw Florida's hat back in that ring as well. |
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tcope
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