No-fault auto insurance can be described as the type of coverage that implies that no single driver can be deemed at fault in a vehicle accident.
Therefore, instead of each person filing a claim against the other driver, each of the drivers will file their claims with their own respective vehicle insurance providers for damages that occurred.
For instance, if John and Kate get in a vehicle accident, John will file a claim with his insurance provider and Kate will file a claim with her insurance company.
So, it really does not matter who was at fault in the accident that occurred.
2 Types of No-Fault Auto Insurance
It is also important to note that there are 2 types of no-fault auto insurance coverages that everyone needs to know about today.
For instance, the most commonly known is the type of no-fault auto insurance that is considered to be the pure form.
The pure form is currently designed to limit the liability as well as the driver’s right to sue the other driver in a vehicle accident.
However, before these laws and guidelines apply to these situations, there are some exceptions.
Some of the more critical include extreme negligence, major injuries a few other reasons.
Typically, when this is the case, most of these vehicle accidents normally end up in with no punitive damages.
However, the driver will be required to pay the other driver for damages.
As previously stated, there are 2 types that people need to be familiar with.
So, the second type can be described as an add on option, and is available in some of the states in the U.S.
Based on this option, the driver can file a claim with their own insurance company and it will not matter who was really at fault.
With the add on, this policy holder can expedite the process by using a quick claims handling process.
Therefore, the driver does not have to wait for extended periods of time to fix their vehicles or to pay for any associated medical fees.
Advantages of no-fault auto insurance
Though there are some shortcomings to this type of insurance, there are some advantages that people can take advantage of if it applies to their situation.
One of the more important for those who do not want to spend a lot of time in court battling it out is the process of handling the claim is much quicker.
For insurance companies, this type of insurance is considered to be a big plus since it limits the liability for insurance companies too.
What is no-fault auto insurance? It is important that people are familiar with this type of insurance, especially if they live in a state that has this kind of law in place.
While there are advantages that speed the claim process up, there are some shortcomings too.
So, some states are returning to the traditional auto insurance policies.