Some states still have what is called “no-fault” insurance. This means that even if you aren’t at fault in an accident, if you get in an accident and you don’t have cheap inexpensive auto insurance, the guilty party’s insurance will not pay for your medical injuries. This type of insurance is said to speed up claims because your own insurance company pays for your claims, thereby decreasing the chance of someone overstating their injuries and trying to get more money than they should.
The no-fault insurance is referred to as Personal Injury Protection (PIP) and there are twelve states that still have this type of insurance. The amount of this type of coverage is determined by the state insurance departments. In these states the insured cannot sue the other party, even if they were at fault, for anything except when the expenses go over a certain amount, a monetary threshold, or when the accident causes death or disability to the person not at fault, a verbal threshold. Some of these states also let an injured persons sue for pain and suffering under certain circumstances.
No-fault cheap full coverage auto insurance can be very complicated as each state has different options such as the right to “buy back” the right to sue another driver. To do this the insured has to purchase more bodily injury coverage. There is a great need for PIP because it provides protection from all the uninsured drivers there are today. It gives the insured peace of mind that they will have their own medical expenses covered if in an accident with one of those drivers.
There is another negative factor regarding no-fault insurance, there is no coverage at all for any property damaged in an accident. The only thing to protect your property is to purchase Comprehensive and Collision coverage. Also, if you are at fault in an accident you may be held responsible for the other driver’s property damage so you need to also purchase liability coverage that will pay for that if necessary.
If you live in one of the twelve states with no-fault auto insurance, you should discuss your options with your insurance agent to make sure that you are covered for all circumstances.