Tuesday, 23 December 2014

What Is No Fault Car Insurance – Find No Fault Insurance States With Bad Driving Car Insurance Accepted, No Deposit Required

Covering all your accident expenses under car insurance is rather an important thing. And we know that there are several coverage’s which come under account while talking about the car accidents expenses. 

In America, it is a compulsion that every driver gets the automobile liability insurance. There are generally four classifications in which car insurance is kept: No-fault, tort liability, choice no-fault and the last one is add-on. All the categories exhibit different subtle and significant differences. In all the differences, the major one comprise whether there are limitations on the right to charge and whether the insurer of the policyholder comes with payments of first-party benefits, irrespective of which driver’s fault caused the event of the accident. The following penning will take you through the no fault insurance claims clearing the questions like what is no fault car insurance and how does no fault car insurance work.

What it is?

The first question which arises is what is no fault car insurance? Well, as stated by the Insurance Information Institute, no fault insurance is defined as:

“The no-fault system is intended to lower the cost of auto insurance by taking small claims out of the courts. Each insurance company compensates its own policyholders (the first party) for the cost of minor injuries, regardless of who was at fault in the accident. (The second party is the insurance company and the third is the other party or parties hurt as a result of the accident.) This type of insurance is often misunderstood because the term itself implies a single insurance type. 

In reality, it's not quite that simple. "Pure" no-fault insurance describes car insurance that provides for no-fault payment of first party benefits and restricts the right to sue (what's referred to as the "limited tort" option). The first party (policyholder) benefit coverage is known as personal injury protection (PIP). Based on this definition, there are currently no states that have a pure no-fault system because all of them provide the ability to sue for non-economic or general damages (but only if and when those damages exceed a certain threshold).”

The states which have it:

There are total 12 states that hold this scenario of no fault car insurance.
  1. Florida
  2. New Jersey
  3. Michigan
  4. New York
  5. Kansas
  6. Pennsylvania
  7. Kentucky
  8. Hawaii
  9. Minnesota
  10. Utah
  11. Massachusetts
  12. Utah
The nine out of these twelve states are the no fault insurance states while rest three are choice states which consist policy based on the regular tort accountability law or no fault insurance. These three are New Jersey, Pennsylvania and Kentucky.
By a little awareness of this, you can get cheap no fault car insurance through several car insurance companies present today. To get the detailed description of what is no fault car insurance, you can consult your insurer or you can research a bit more on internet websites. In car insurance Florida no fault is getting known to everyone day by day.