How a No-fault State Can Affect Your Car Insurance
Posted: Wednesday, February 17th, 2021 at 6:08 pm
How a No-fault State Can Affect Your Car Insurance
If you live in the US, you know that auto insurance laws depend on state rules and regulations. No-fault auto insurance allows automobile owners to file a claim after being involved in an accident. The best part? It is regardless of who causes the accident.
In case if there aren’t any no-fault laws in your state, you may have to purchase a Personal Injury Protection (PIP) to include in your auto insurance policy. Overall, no-fault applies to state laws boasting first-party no-fault benefits and limit suing. It is also known as a ‘limited tort‘ option. Here we discuss what a no-fault state means for auto insurance:
What is a No-fault State?
Automobile owners typically own insurance to cover destruction or harm caused to the driver. Here, you can avoid paying any fee to another driver. No matter who causes an automobile accident, the no-fault state lets you claim through your insurance. It is also vital for drivers that their insurance policy comprises PIP coverage to support their claims.
Auto accident laws aren‘t very strict. Therefore, the severity of a rule mostly depends on how serious the inflicted injury may be. Also known as ‘threshold conditions,’ these typically vary from state to state.
Additional Auto Insurance Laws
It‘s not essential your state is a no-fault state. Below, we discuss the varieties of different state laws:
A Choice No-Fault
If your state is a ‘choice no-fault state,‘ you may choose between two different plans—either a no-fault insurance plan or a traditional one. Moreover, Kentucky includes a monetary threshold, whereas Pennsylvania and New Jersey offer a verbal threshold.
Tort Liability
Tort liability states come without any restrictions on lawsuits. In tort liability states, a driver is determined to be blameworthy for the accident. Moreover, an automobile owner may hold others accountable for any suffering, harm, or destruction caused. Plus, they may sue the driver for medical expenses as well.
Add-on
Lastly, add-on states gain reimbursement via their insurance company. However, these lawsuits don‘t include any restrictions.
It is similar to no-fault laws except that tort liability systems are also included. Alternatively, the first-party benefits may be less than in a no-fault state.
Which States in the US are the No-fault States?
The United States boasts at least 12 states regarded as no-fault states. It comprises;
- Florida
- North Dakota
- Minnesota
- Hawaii
- New York
- New Jersey
- Michigan
- Pennsylvania
- Kentucky
- Massachusetts
- Utah
Apart from all these states, Puerto Rico- a US territory- also includes no-fault laws and regulations.
How Does No-fault Auto Insurance Affect Your Car Insurance?
In most no-fault states, every vehicle owner must possess Personal Injury Protection (PIP) coverage. Depending on the state you reside in, the minimum PIP coverage pay may vary. Otherwise known as no-fault insurance, the coverage covers medical bills for both the driver and the passengers. Here too, the coverage may vary from state to state.
Moreover, PIP covers lost wages, insurance deductibles, and any service you may be unable to carry out due to vehicle-related injuries. On the flip side, Property Damage Liability (PDL) pays for any fee due to the driver’s damage caused to a vehicle or property.
Sources
https://www.coverage.com/insurance/auto/what-does-a-no-fault-state-mean-for-auto-insurance/
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