What is No-Fault Car Insurance

We assume that car insurance claims and reimbursements are strictly related to someone’s fault. So, when hearing the term “no-fault insurance” for the first time, we usually get a bit confused. There’s no worry, we are here to help you understand it. Plus, if you want to get better coverage for your car, you can always get online auto insurance quotes. We deliver quotes from the best companies in the area.

# car-auto insuranceNo-fault insurance means that you can make a claim on your own insurance for injuries from a car accident, no matter who is responsible for the accident. The insurance that pays no-fault claims is personal injury protection, or PIP. In no-fault states you generally can’t sue other drivers for economic losses (such as medical bills and lost wages) or pain and suffering unless you suffer serious injury.

With PIP, you can cover the following:

  • Lost wages if you are left unable to work
  • Your health insurance deductible
  • Medical bills that exceed your health insurance coverage
  • Services you can’t perform due to the car accident, such as childcare or house cleaning
  • Funeral expenses
  • Death benefits

There are 12 states in the U.S. that have adopted the no-fault insurance system.  The PIP coverage will be automatically included in car insurance quotes for those states. Only in Michigan, you can also use PIP to cover property damage.

PIP can be used to cover non-economic costs (such as pain, traumatic shock), besides medical costs. You should be aware that there is a maximum limit for which you can sue for non-economic damage. Each state regulates this limit.

No-fault insurance was designed with the purpose of speeding insurance claims. They also help the victims resolve further litigations and eliminate the costs associated with hiring a personal injury lawyers.

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