Posts Tagged ‘no fault car insurance’

No-fault Auto Insurance Coverage Explained

Wednesday, September 28th, 2011

No-fault auto insurance coverage is a system where people who have been injured in a car accident file claims for their “reasonable and necessary” expenses to their own insurance company for payment. This system makes paying claims a much quicker and easier process than with the tort system of car insurance. Under the tort method of managing claims, accident victims have the right to sue the driver found responsible for causing the accident but they have to wait longer to receive compensation for their injuries.

A no-fault car insurance system applies to personal injury claims only and pays for medical bills, as well as rehabilitation and other expenses incurred by the accident victims. It covers the policyholder, his or her family members and passengers traveling in the policyholder’s vehicle.

Claims for property damage, such as repairs to the policyholder’s vehicle, are not covered under no-fault insurance. An investigation is conducted to determine which driver was at fault for the accident and the at-fault driver (and his or her insurance company) is responsible for paying for these expenses.

In many states which have adopted the no-fault auto insurance system, accident victims have the right to sue to collect damages from the at-fault driver if their injuries are serious and permanent in nature. For this reason, third party liability coverage is required in no-fault car insurance states. Drivers must have at least a minimum level of protection in place to drive legally.

Utah and Virginia Auto Insurance Coverage Comparison

Thursday, August 18th, 2011

Utah and Virginia have some characteristics in common when it comes to auto insurance requirements. Both states require registered vehicles to carry third party liability coverage, but Utah operates under a no-fault system and Virginia is a tort state for car insurance.

Utah Auto Insurance Coverage Requirements

Under Utah state law, drivers must have at least the following level of liability coverage in place:

  • Bodily injury coverage of $25,000 to pay for personal injuries or the death of one person in an accident
  • $65,000 in bodily injury protection to compensate all victims of the same accident
  • Property damage liability coverage of $15,000 to pay for repairs to the other driver’s vehicle and any public property damaged in the accident
  • Personal Injury Protection (PIP) coverage of $3,000

PIP insurance is used to pay for personal injury claims made by the policyholder and the occupants of his or her vehicle under the no-fault provisions of the policy.

Virginia Auto Insurance Minimum Requirements

Virginia drivers are also required to have at least a minimum level of auto insurance coverage in place.

  • Bodily injury liability coverage of $25,000 to compensate a single accident victim
  • $50,000 in bodily injury protection to pay for personal injuries and funeral expenses for two or more people injured in the same occurrence
  • Property damage liability coverage of $20,000 to cover damage to fences, sheds, buildings, sign posts and the other driver’s vehicle

Accident victims in VA have the right to sue to collect damages from the at-fault driver in an accident. In Utah, claims for compensation are made to the policyholder’s own insurance provider.

What Auto Insurance Coverage Do I Need in a No-fault State?

Friday, July 29th, 2011

Drivers who live in a no-fault state still need to have liability coverage in place to protect their assets. The term “no-fault” is a bit of a misnomer: insurance companies investigate accidents to determine which driver is legally responsible for the damages. People who have been injured in a motor vehicle accident will seek compensation for their medical bills and related expenses from their own insurance provider as long as the level of damages is below a threshold set by the applicable state.

The state will set a certain level of liability coverage which drivers must have in place to stay legal. A driver can choose to buy a policy with a higher policy limit if he or she wishes to do so; the higher the limit, the better the driver is protected from having to pay for damages following an accident personally.

Claims for personal injuries made by the policyholder and the occupants of his or her vehicle are paid though Personal Injury Protection (PIP) coverage. The state will probably set a minimum level of coverage which must be put in place. Drivers who have a good medical insurance plan may want to limit their PIP coverage to this level, while those residents who don’t have medical coverage or who have limited benefits can buy a PIP policy which will pay out a higher level of benefits.

Is Minnesota a No-fault State for Car Insurance?

Tuesday, January 4th, 2011

Minnesota is a no-fault state for car insurance purposes and buyers need to be aware of this fact then deciding how much coverage to buy. This means that when a car accident occurs, claims for injuries and damages incurred are handled by that person’s insurance company directly. Injured people do have the right to sue for damages following an accident, but this option is only available in the case of a serious accident.

Under state law, car insurance buyers must have at least $40,000 in Personal Injury Protection (PIP) coverage in place. This part of the policy provides coverage for “reasonable and necessary” medical expenses following a car accident. The $40,000 limit may sound like a lot of protection, but keep in mind that health care costs are continuing to rise over time. If you were seriously injured in an accident or there were multiple victims in your vehicle, it won’t take long for you to use up your available coverage.

Before making a decision to buy only the minimum amount of PIP required by law, consider whether you have a good health insurance plan in place that can pay for medical expenses following an accident. If you already have a good level of coverage in place through your employer or a private plan, you may be able to get away with limiting your coverage to the minimum amount required by law.