You may live in a state with no-fault
auto insurance. You need to understand what it is and how it
No-fault laws require drivers to
carry insurance for their own protection. Limitations are set on the
ability to sue other drivers for other damages.
First, you need to know if you live
in a no-fault, tort or choice state. Laws vary from state to state.
When you have an accident in a tort or no-fault state, your
insurance company will pay for the injuries you sustain.
If someone hits your car in a
no-fault state, your insurance company will pay to fix your car and
then go after the other guy's insurance company if they believe it
was his fault. Any other drivers involved are covered by their own
auto insurance policies.
In a torte state, you can have your
insurance company repair your vehicle. Or you can have the other
driver's company handle the details. If you do the latter, you don't
have to worry about reporting the accident to your insurance company
or pay a deductible.
No-fault is a fix to the traditional
tort system which allows the wronged party to sue the driver
responsible for the accident to recover for bodily injuries. Under a
no-fault system, no one is allowed to sue anyone. However, most
states have adapted the system as to not remove your right to sue.
Most states combine no-fault with tort systems and permit lawsuits
in certain cases.
Find out what kind of system your
state has to better understand what type of coverage you need.