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In a Pure No Fault System, How Does It Work?

Author: Richard Greene  //  Category: Car Insurance

No-fault insurance is a largely misunderstood concept. The concept involves 2 requirements:

* It requires drivers to carry insurance for their own protection.

*Limitations are put on the ability of drivers to sue others for damages sustained

If your insurance is no-fault, the insurance carrier will pay you for damages up to policy limit amounts. This money takes place regardless of your fault in the accident (that’s why it’s called no-fault). If other drivers were involved, they would have coverage, but with their own auto insurance coverage.

In a system that is a true no-fault one, the driver or the vehicle would receive complete coverage with the insurance policy. In addition, the driver would not have the right to sue another vehicle’s driver for damages.

Currently twelve states use a no-fault system, and none really have a pure model. States put in a hybrid model mixed with the standard liability system. One can sue in specific instances, and it’s a great idea to read up on your own states particular model.

What are the benefits of no-fault insurance? This insurance guarantees every driver access to medical care immediately. One main intent is to decrease the administrative and legal fees associated with insurance claims. Theoretically, insurance premiums should go down accordingly.

Due to remaining liability issues as no state has in place a true no-fault mode, one’s insurance premiums do tend to go up however. Personal injury protection is one term that is used to refer to no-fault. Numerous states include varying coverages with this, but most involve injury expenses such as medical costs, funeral expenses, wages, and death benefits.

No state uses a pure no-fault model, and drivers can still be held responsible financially in some instances. Certain states allow lawsuits when the case reaches a certain dollar amount, while other states allow lawsuits based on severity standards.

Critics of the system argue that reckless or negligent drivers are not punished sufficiently. Also it is routinely seen that insurance premiums in no-fault states are the highest in the US. Proponents of no-fault insurance state that in areas with a high number of uninsured drivers, parties at fault are often unable to pay liability damages anyway. Also, those in favor say accidents are inevitable, so why punish those at-fault necessarily?

3 of the no-fault states permit drivers to make the decision between no-fault and traditional tort. New Jersey and Kentuck permit this decision, and if the driver does not make the decision the no-fault is assigned by default. In Pennsylvania the opposite is in effect, where the full tort option defaults.

Numerous states have changed their no-fault laws after trying it out. In the 1970’s 2 dozen states enacted laws, and and this point half repealed.

Want to find out more about personal injury lawyers phoenix, then visit RJ Hurwitz Law site on how to choose the best Phoenix car accident lawyer for your needs.

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