Out of the 50 US states, only 13 have adopted "No fault" auto insurance. A foundation based on fault is used by the other states. This is how insurers settle on when and how much they will pay out. The decision would be based on defining each person's degree of fault.
Coming up with this information can be expensive and time consuming. And it overworks a court system that is extremely overloaded already. The 13 states that make use of the no-fault insurance are Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
With no-fault, your insurance company pays no matter who is at fault. It will cover to the policy limit. You would sacrifice any privileges to bring a claim to any other drivers that may have been caught up in the accident.
Fault, in this case, wouldn't matter as medical and property would be compensated. The rationale is to not bog down the court system any further. Caps are placed on pain and suffering but other losses are covered.
There are actually two different types of no-fault insurance. The insurance company disburses to the policy limit for medical and loss of wages. But, you forfeit any privileges to take legal action. This system is not in use across the US. It is basically obsolete.
The modified no fault is used in the states that function with no- fault. In some cases you can still bring forth a claim but your damages and lost wages are paid for. If damages surpass a specific amount then it would be possible to recoup losses. The amount of cases allowed to approach the bench would be restricted to serious only.
There are merits to this system. Claims are processed quicker and eliminating attorneys keeps prices for insurance down. It keeps the number of lawsuits at a minimum which keeps the courts happier.
There are still some that see fault with the system claiming that if doesn't reward good drivers. Pain and suffering not being compensated for is a claim that some make. There are pros and cons with either plan.
Coming up with this information can be expensive and time consuming. And it overworks a court system that is extremely overloaded already. The 13 states that make use of the no-fault insurance are Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
With no-fault, your insurance company pays no matter who is at fault. It will cover to the policy limit. You would sacrifice any privileges to bring a claim to any other drivers that may have been caught up in the accident.
Fault, in this case, wouldn't matter as medical and property would be compensated. The rationale is to not bog down the court system any further. Caps are placed on pain and suffering but other losses are covered.
There are actually two different types of no-fault insurance. The insurance company disburses to the policy limit for medical and loss of wages. But, you forfeit any privileges to take legal action. This system is not in use across the US. It is basically obsolete.
The modified no fault is used in the states that function with no- fault. In some cases you can still bring forth a claim but your damages and lost wages are paid for. If damages surpass a specific amount then it would be possible to recoup losses. The amount of cases allowed to approach the bench would be restricted to serious only.
There are merits to this system. Claims are processed quicker and eliminating attorneys keeps prices for insurance down. It keeps the number of lawsuits at a minimum which keeps the courts happier.
There are still some that see fault with the system claiming that if doesn't reward good drivers. Pain and suffering not being compensated for is a claim that some make. There are pros and cons with either plan.
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