Broadly, no fault car insurance, also known as Personal Injury Protection (PIP), represents any kind of insurance contract where the policy holder is reimbursed for losses by his insurance carrier, regardless of whose fault an automobile accident actually is.
No fault car insurance aims to give practical medical protection for people hurt in car accidents particularly in times when treatment is badly needed or when doctors have to recover costs. Thus, this also helps to eliminate lawsuits.
However, the amounts paid by no fault insurance policies are often insufficient to cover losses fully. No fault auto insurance does not cover suffering and pain too.
In many states, where no fault insurance is used, the policy often include compensation for health-related bills, lost wages and replacement services.
Replacement services are considered the cost to pay for somebody else to do something you would in most cases do yourself if perhaps you were not hurt such as baby-sitting.
In spite of popular beliefs, a no-fault insurance is not a substitute for your health insurance policy. Even so, if you are hurt in a car crash, you may use your health insurance policy and the no-fault insurance to cover your expenses and recuperate the actual losses.
In addition, a no-fault insurance can’t be used to compensate for physical damages in a vehicle accident. Therefore, if you had an accident and do not have collision coverage as part of your insurance policy, you will certainly have to pay for the damages to your motor vehicle or property, and your monthly premiums will probably increase.
No fault auto insurance doesn’t compensate for the non-economic damages in a car accident. Which means that suffering and pain, loss of pay and other injury related issue are not covered by a no-fault insurance policy. In addition to this, it cannot answer for the damages of the uninsured nor the under-insured in a motor vehicle accident.
In sum, a no fault auto insurance policy is essentially limited plan that deals only with a particular problem in an accident. And based on which state you live, a no-fault coverage features a limited application.
In Los Angeles, for example, exactly where a no-fault coverage is recognized and utilized, it also makes sense to get a more comprehensive and reliable motor accident policy. In case of accidents, a comprehensive insurance policy can help recover each economic and non-economic damages for either the insured or the victim.
However, no fault auto insurance has it advantage. When one gets involved in an accident, for example, a no fault auto insurance can help him collect from his insurance no matter who was at fault.
Your insurance coverage may ultimately affect your claim in an accident. Depending on how fault is determined by law in your state, getting a no fault auto insurance may influence the outcome of one’s claim in a automobile accident.
Recovery of losses in motor vehicle accidents will considerably depend on how you well you deal with the situation. To improve your chances of acquiring full compensation for your claim, you have to talk about matters and clear up the issues together with your lawyer.