A no fault claim car insurance policy is a vehicle coverage in which insurance providers compensate policyholders (first party) for financial damages incurred on minor injuries that might result from accidents regardless of whoever may be at fault. Thus, by securing car insurance no fault claim, drivers can settle small claims without going to court.
12 states in the U.S. currently make it mandatory for drivers to get no-fault car insurance states. These are:
There is a common misconception among people that in no-fault auto insurance, no one is at fault. You need to know that in this type of car coverage, it is the company, which handles claim, will determine who is at fault during accident and pay the damages for injuries caused.
Typically, rules and regulations in all car insurance no fault states require drivers to buy insurance cover for their personal protection as well as place restriction on them to sue other drivers for claiming damages incurred during accidents. However, no state has a pure system; most of the “no-fault” states use combination of no-fault and standard liability systems. This means that in certain cases, filing of lawsuits may be permitted.
It is an insurance policy which makes it mandatory for drivers to get adequate financial protection should they meet with an accident regardless of the fact whether they are at fault or not. Besides, under car coverage of this type, it is the insurance company which will pay for liability damages.
The amount as well as type of “Personal Injury Protection” (PIP) required to be purchased by drivers will vary from state to state. Some states like Kentucky and Pennsylvania, a driver may even have the option to select between a PIP cover and “no-fault” system. Hence, it could be vital for you to first check your no-fault insurance state requirements.