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Understanding No-Fault Car Insurance

When living in a state that follows no-fault insurance laws, it's important that you understand what happens when injured in a car accident. Injured victims will likely file a claim with their insurance companies regardless of who caused the crash. Here are few basic things you should know:

  • No-fault car insurance means if you're in an accident, your insurance coverage will pay some (or all) of your out-of-pocket economic losses, regardless of who was at fault for the crash.
  • You can step outside of the no-fault system in every no-fault car insurance state if your injuries qualify under the statutory threshold.
  • Some form of no-fault car insurance is mandatory in around a dozen states, but it's available as an add-on to your car insurance policy in every state.
  • A no-fault claim is submitted through the "personal injury protection" or "PIP" provisions of a car insurance policy (this kind of coverage is mandatory in a no-fault state, but can you can also purchase PIP-type coverage on top of any traditional liability coverage in non-no-fault states).
  • No-fault car insurance can lead to a streamlined claim process and quicker payment, but "pain and suffering" and other non-economic effects of the accident aren't compensated.

What Does No-Fault Car Insurance Cover?

With a PIP claim, injured victims can typically get compensation for various economic or out-of-pocket losses resulting from a car accident. This usually includes:

  • Lost earnings (up to a certain amount) resulting from the injuries
  • Medical bills related to the car accident injuries
  • Cost of replacement services (errands and chores you can't do because of your injuries)
  • funeral/burial costs if someone died as a result of the accident

Most people fail to realize that with the no-fault scheme, pain and suffering are not eligible for compensation.

Contact a Lawyer

If you or someone you know has been injured in an accident, contact a lawyer immediately to review your case details. Here at Bolt Hoffer Boyd Law Firm we have a team of skilled attorneys dedicated to your success. Let us be your voice.

Call our office today at (763) 292-2102 or visit us online to schedule your free consultation.