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Automobile Insurance Coverage:Understanding No Fault Insurance Coverage

If you are in the process of purchasing a new or replacement automobile insurance policy, you may have some basic questions about a typical car insurance policy and what is contained in a particular policy of car insurance in this day and age. You may be wondering what is meant by no fault insurance coverage. Through this article, you will be provided with some basic information about no fault car insurance that is available in this day and age.

No Fault Car Insurance -- Defined

No fault car insurance is car insurance that requires the insurance companies of each person involved in an accident to pay for medical bills and lost wages (as well as some other costs) of their own insured. These companies are obliged to make these no fault payments up to a certain dollar amount. That dollar amount is established the state government.

States across the country have developed no fault schemes in recent years. With the ever rising number of lawsuits being filed, state governmental leaders across the United States believed that the no fault insurance process would work to curb at least some of the litigation that was occurring in the United States.

The Benefits of No Fault Car Insurance in Today’s World

As mentioned, one of the broader benefits associated with no fault insurance coverage in this day and age is a lowering of the number of smaller lawsuits that have been filed as the result of a car accident. Because individual insurance companies are now responsible for paying the claims of their own insured up to a certain level, there really have been far fewer disputed matters that have had to be litigated.

On a more direct, and personal, level, consumers have a greater deal of confidence in knowing that at least smaller claims arising from accidents will be dealt with in a quicker, more timely manner. Because a consumer does not need to depend upon the actions of another insurance company when it comes to a no fault claim, such a claim normally is settled and dealt with far faster and without the consumer having to spend a great deal of time working out the claim.

The Downside to No Fault

As with so many things in life, there are also some negative factors associated with no fault car insurance. For example, in some instances, the total amount of coverage available under a no fault plan ends up not being enough to fully compensate a consumer for his or her losses associated with a car accident.

In addition, when it comes to no fault car insurance coverage, such coverage does not compensate a person for pain and suffering.

For More Information

If you desire more information about no fault insurance, you will want to contact the insurance commissioner in your state who can provide you basic information about no fault insurance.


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