How No-Fault Insurance Works 

Jun 30, 2023

Medical expenditures sustained from car accidents are covered by no-fault insurance policies. No-fault insurance doesn’t require determining fault to cover expenses and lost wages, unlike traditional car insurance. It is a mandatory add-on to any auto policy in 12 states in America but can be added on optionally in others.   


Determining fault in a car accident is not a consideration with no-fault insurance when covering medical expenses and loss of income. It is traditional to receive coverage for bodily injury liability, property damage liability, and personal injury protection when obtaining no-fault auto insurance. 


Bodily injury liability coverage will cover the medical expenses of individuals you injured in an accident you caused. Property damage liability coverage will pay for the cost of repairing another person’s property or vehicle if you are deemed responsible for the accident. 


Even if the accident was your fault, your vehicle and property can still be damaged, and you can suffer injuries, which is where personal injury protection insurance under no-fault insurance policies becomes crucial. The cost of the policy may increase due to the minimum personal injury protection coverage amount required by most insurance companies. 


The regulations regarding no-fault insurance can differ by state. Although no-fault insurance is mandatory in some states, the provisions and benefits can differ.   


You should aim to balance your personal injury coverage and liability coverage, regardless of the state’s no-fault insurance requirements. To guarantee that your no-fault insurance fits your situation, it is necessary to scrutinize your insurance provider’s particulars. 





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