No-fault insurance is vehicle insurance that isn’t concerned with who caused the accident. So even if the accident was your fault, your own insurance will cover any medical bills related to the accident if someone was injured.
With this type of insurance, if another driver hit you and it was their fault, you don’t have to contact their insurance company and file a claim, you just contact your own insurance company. This type of insurance is also called Personal Injury Protection or PIP.
No-fault insurance is different from traditional liability insurance because if another driver hit you and it was their fault, it is their insurance company that has to pay. Therefore, you would have to get the other driver’s insurance information to file a claim.
List of No Fault Insurance States
Under the state liability law, in order to receive compensation from the insurance company, you have to prove to the other driver’s insurance company who was at fault.
- New Jersey
- New York
- North Dakota
* Puerto Rico, although not a U.S. state but a Common Wealth of the United States is also a no-fault insurance territory.
What Will No-Fault Insurance Cover
This type of insurance will pay for medical treatment, physical therapy, chiropractic fees, lost wages, funeral related expenses and death benefits if someone dies as a result of the accident.
The amount of money that your no-fault insurance will pay depends on how much insurance you purchased. You can check the declaration page of your insurance policy to find out how much coverage you have. If you can’t find this page, then call your insurance company to find out.
There are some items that no-fault insurance does not cover and that may include, pain and suffering or emotional distress. It also does not cover vehicle repair bills or personal property that is inside of the car and damaged during an accident.
There are different exceptions to no-fault insurance and what is covered and this varies by state. You would need to read your policy very carefully or contact your insurance company to know exactly what is covered.
No-fault laws are designed to reduce the amount of negligence lawsuits that are filed in the state courts. The payout amounts are usually mandated by the state. It is mainly in more serious accidents where an accident law suit to recover damages may possibly result in additional compensation, depending on the injuries.
Its best to work with an accident attorney to find out what your legal rights are in a no-fault insurance state.
Our nationwide network of car accident attorneys can help you. We are available 24/7. Call us at: 855-272-6990.