3 Things To Know About No-Fault Insurance Claims

Car accidents can often result in serious damage. This damage occurs not only to the vehicles involved in the accident, but also to the people within the vehicles as well. A few states have chosen to adopt a no-fault system when it comes to auto accidents.

All drivers are required to purchase personal injury protection insurance, and this policy pays out immediately to cover unexpected costs no matter which driver caused the accident.

Learn more about no-fault insurance claims so you will better understand when you need to pursue additional compensation through a lawsuit.

1. No-Fault Insurance Claims Minimize Lawsuits

The primary purpose of no-fault insurance claims is to minimize the number of personal injury lawsuits filed within a given state.

It can take a significant amount of time and money to resolve a personal injury lawsuit in court. By requiring that all drivers carry a valid personal injury protection policy that will provide financial compensation after any accident, the need for lawsuits is reduced.

This doesn't mean that you will never need to pursue a personal injury case following an auto accident. It's always wise to meet with an experienced no-fault insurance attorney to determine the best course of action.

2. No-Fault Insurance Covers a Variety of Damages

Damages are at the center of any personal injury lawsuit.

The most common types of damages that people seek financial compensation for when filing a personal injury lawsuit include lost wages, the cost of medical care, and funeral expenses (when applicable). Personal injury protection policies pay for these types of damages in no-fault states.

Despite this broad range of coverage, there are some damages that cannot be compensated through personal injury protection insurance. These include emotional pain and suffering, and a change in one's quality of life.

An experienced attorney can help you determine if driver negligence played a large enough role in your accident to warrant filing a lawsuit to seek compensation for these types of damages.

3. No-Fault Benefits Apply to Out-of-State Accidents

If you are the type of person who likes to travel, your no-fault insurance coverage will protect you in the event you are involved in an accident outside your home state.

The personal injury protection provisions will kick in as long as the vehicle and the driver involved in the accident are listed on the no-fault policy. The one exception is a rental car, which qualifies as an insured vehicle for claims purposes.

An attorney will be able to help you navigate the claims process if you are involved in an out-of-state accident. Contact a no-fault insurance attorney to learn more.