Understanding No Fault Car Insurance

No system is perfect and neither is the no fault car insurance system, however we must have some type of system in place to deal with the amount of litigation attributed to car accidents. The no fault system was designed to do away this time consuming process produced by this litigation. With the no fault system, fault on behalf of the parties involved do not need to proven which allows injured parties to receive benefits much quicker if they were not the primary reason for the accident. In the past with the fault system, injured parties could very often wait years for benefits since litigation in the court systems tied up payment of benefits.

Another benefit of the no fault system is the party that did cause the accident can also have their damages paid as a result of the accident. Not only can the damages and cost of repairs to their car be paid, but their medical bills and lost wages as result of injury can also be paid. In the old fault system, these incurred expenses resulting from the accident would not have normally been paid by their insurance company.

The no fault system was designed to eliminate the need for attorneys by making them unnecessary. Insurance companies following the guidelines of the no fault system pay claims to injured parties once proof of loss has been provided, usually after a claims adjuster has signed off on the accident report.

Benefits cover a range of losses including: Medical expenses up to the limit defined in the policy. It is important for policyholders to read their policy and know what these set limits are if benefits are ever required. Rehabilitation expenses may also be paid if injuries are severe enough that rehabilitation or physical therapy is needed. Lost wages are another area in which car insurance policies cover. Depending on the wording in the individual policy, all or a portion of lost wages can be paid.

Various types of indemnification payments can also be collected to help with essential duties that cannot be preformed due to injuries sustained in an auto accident. The duties may be home maintenance or household chores that are needed for daily living. Funeral expenses may be included should a death occur because of an auto accident as well as payments made to survivors of those killed to replace income that was once provided by the lost family member.