Out of the 50 US states, only 13 have adopted “No fault” auto insurance. A foundation based on fault is used by the other states. This system is how insurance companies determine how they will make their pay outs. The decision would be based on defining each person’s degree of fault.
The problem with this traditional rationale is that it can take up a lot of time and money. Plus, it crowds an already overcrowded court system. No fault is utilized in Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Your insurance company provides coverage regardless of fault. Policy limits are paid out. That is their end of the bargain but in turn you forfeit any rights to sue any other driver/drivers that might have also been involved.
Fault, in this case, wouldn’t matter as medical and property would be compensated. The intentions behind this kind of insurance are to keep these cases out of court. Placing confines on pain and suffering although paying for other losses is how the system is made up.
No fault comes in two varieties. Pure no fault will pay for medical and wage loss up to your policy limit. You relinquish any chances of bringing forth a lawsuit. This system is not in use across the US. It is, in essence, superseded.
States use what is called modified no fault now. In some cases you can still bring forth a claim but your damages and lost wages are paid for. If damages surpass a specific amount then it would be possible to recoup losses. Severe injuries only can go before the courts.
There are merits to this system. Claims are paid out much faster, no lawyers are involved, and this results in offering lower insurance premiums. It keeps the number of lawsuits at a minimum which keeps the courts happier.
Many do not like this system because it treats bad and good drivers alike. Many also feel that people are not rewarded fairly for pain and suffering. There are both benefits and drawbacks in using both systems.
