No-Fault Insurance Explained

If youre fortunate, or depending on how you looknormal manner. When all of a sudden she felt a
at it, unfortunate to live in one of the twelvebump and heard a scream. At first she thought
states that are under a non-fault auto insuranceshe ran over her cat who would occasionally
system, you can cause an accident, yet yourescape. She opened her car door and found half
insurance company wont pay for the otherof a body. Scared half out of her mind, she shut
parties damages.the car off and ran into the house and
If you live in a No-fault state (DC, FL, HI, KS, KY,immediately called 911.
MA, MI, MN, NJ, NY, ND, PA, UT) that means youThe driver was too scared to go outside at that
live in a state that both requires drivers to carrypoint. As far as she knew, the half body,
insurance for their own protection and placesbelonging to one of her neighbors, was still under
limitations on their ability to sue other drivers forthe car and the driver was certain the injuries
damages. Your auto insurance company will paywere serious. Her left rear wheel had crossed her
for your damages (up to your policy limits),body from her thigh on one side on the diagonal
regardless of who was at fault for the accident.to above her pelvic region. The driver later
Any other drivers involved will be covered bylearned that some strong man from across the
their auto insurance policies. Since all are requiredstreet came over and picked up the car so she
to carry insurance, in theory, there should be nocould get out from underneath.
uninsured motorists in those states. Stop laughing;The neighbor announced that she was feeling fine
the term in theory was used!and didnt want to go to the hospital. But the
These states opted for the no fault insurancepolice and ambulance didnt feel the same way so
system because it guarantees every driverthey took her the four blocks to the hospital.
immediate medical treatment in the event of anTurns out the neighbor was sunbathing behind her
accident. Further, it's intended to reduce the legalcar and somehow the driver didnt see her when
and administrative fees associated with insuranceshe walked to her car. She ended up with no
claims. Again, in theory, this should equate tobroken bones, no internal injuries; just a tire track
lower premiums. Unfortunately, often times thefrom her right thigh across to her left stomach.
liability issues that still remain will actually driveThe driver felt absolutely terrible, accepted full
premium costs up.responsibility, wanted to do everything and more
However, because no state is pure no fault,to make it up to her. The next day, the driver
drivers can always be held financially responsiblephoned the insurance company to explain to them
for the cost of injuries they cause in certainwhat had happened. They asked her two
circumstances thats the loop hole. Some statesquestions. #1 Does she drive? (yes) and #2 Does
allow injured parties to sue if their injuries meetshe own a car? (yes). The insurance company
certain standard for severity, while others allow itinformed the driver that due to No Fault insurance
when total costs reach a certain dollar level.the neighbors own car insurance would have to
Below is a classic case of a no-fault situation.cover the medical costs. The driver was clearly at
Neighbor lived in a four-plex apartment building. Itfault, yet the drivers insurance wouldnt cover the
had a 4-stall garage along with a 4-stall widedamages even though it was her fault.
driveway. Because the driveway was so wide itThe driver went as far as to tell the neighbor to
was second nature for the tenants to pull out ofsue her since it was her fault and she felt totally
their parking spots and turn around in theresponsible. The neighbor merely responded, It
driveway instead of backing into the street.was just an accident. The lesson here - next time
One Sunday afternoon, one of the tenantslay on the grass, instead of the drive way to
decided to go visit a friend. She got into her carsunbathe and risk the doggy doo.
and began backing out of the driveway in her