No-fault auto insurance (also called “limited tort” insurance)
Allows policyholders to receive financial compensation from their insurance carrier, regardless of who was at fault in an accident, while the company determines liability and gathers information. Twelve states currently allow some type of no-fault insurance : Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah.
How can no-fault insurance benefit you? First, by streamlining the claims process, no-fault allows each person involved in an accident to collect money from their own insurance company to cover injury and damage costs—without involving courts or claims against the driver deemed “at fault.” So the process involves far less paperwork and far fewer delays.
No-fault saves you time
Perhaps the greatest advantage of a no-fault policy is the time you save. In a traditional “full tort” system, you could have to wait weeks—even months—before you receive compensation, while enduring a lengthy court process with the other parties involved in an accident. With no-fault insurance, you deal directly with only your provider. Just file your claim, and promptly collect the money due you.
No-fault is more convenient.
If you have a traditional, “full tort” policy and are involved in an accident, you could end up spending money before ever receiving a dollar in compensation—regardless of who is at fault. Court fees and delays could prevent you from getting the assets you need to make repairs to your vehicle and get back on the road. As the holder of a no-fault policy, you can get the money you need promptly, without paying out of pocket for needed repairs or court coats.
No-fault car insurance can save you money
If you are at fault in an accident, under traditional “full tort” insurance, you’d be responsible not only for damages to your vehicle but to the car of the other party involved in the accident. No-fault insurance means that you are responsible only for the damages to your vehicle. At first glance, such a system may seem unbalanced in favor of the driver who is at fault in an accident. But when you factor in delays and court costs, the streamlined no-fault process takes much of the inconvenience out of the claims process, for both drivers.
To learn more about no-fault auto insurance, the insurance laws in your state, and the best way to receive multiple car insurance quotes and select the policy that’s just right for you, use CarInsuranceQuote.com today.