No-Fault Automobile Insurance: Is it Worth the Cost?
Joey Hudson
Twelve states in the United States make No-Fault Insurance programs available to drivers. New York, Florida and Pennsylvania are among those states. No fault insurance is available in Washington, D.C. as well. In the event of an accident, No-fault coverage extends to the policyholder only. No-fault automobile insurance is designed to decrease the number of lawsuits following automobile accidents.
Settlements obtained in a lawsuit are limited by No-fault insurance policies. Respective insurance companies are expected to pay for the damages to their policyholders involved in accidents, whether at fault or not.
No Fault insurance is offered for two primary reasons. They ensure that all drivers have access to medical care for injuries resulting from an accident, without questions. They also are aimed at decreasing subsequent lawsuits.
The other reason is to limit the amount of lawsuits that are filed for traffic accidents. Everyone will be deemed to be not at fault, no matter who causes the accident.
In some states, the premium for no-fault insurance raises the amount of premiums paid by all policyholders because the insurance companies have to pay related settlements, whether or not holder was at fault. No Fault insurance punishes safe drivers while rewarding those drivers with poor driving safety records by increasing rates and eliminating discounts. Comparison-shopping in the states where no-fault insurance is available can ensure the lowest insurance premiums possible.
Under No fault insurance, each party involved in an accident is required to file a claim with their insurance company. This is aimed at eliminating the abuse of unnecessary medical testing. Following accidents, some drivers will go to chiropractors for years in hopes of obtaining a significant settlement in a lawsuit. No fault insurance eliminates abuse of the medical and legal systems and allows those who need treatment to seek medical attention for injuries.
There are good and bad qualities to No fault automobile insurance because it there is no incentive for safe drivers to gain safe driver discounts.
No Fault does cut down the number of lawsuits and unnecessary medical costs and ensures all parties have access to immediate medical treatment for accident related injuries.
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