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What is No Fault Auto Insurance?

Under a no fault insurance based system, your auto insurance company pays no matter who is at fault in the accident.  By having this type of auto insurance you give up your right to bring a claim against the other driver involved in the accident if you weren’t at fault. 

No matter who is at fault in an accident, no fault insurance provides reimbursement for certain lost wages and medical expenses.  There is normally a set limit for the amount of lost wages that will be reimbursed for a driver on their auto insurance policy.  No fault insurance may also provide coverage for damages to property (fences, buildings, or a parked car) done in an accident.  Typically, basic no fault car insurance doesn’t provide coverage for damages done to vehicles involved in an accident.  No fault car insurance is used to help prevent lawsuits from being filed with the court for auto insurance claims.  Easier auto insurance claim settlements and less court time allow for cheap no fault insurance premiums. 

Most states have a fault based auto insurance system, but there are 13 states that have a no fault car insurance system.  These states include Kansas, Colorado, Pennsylvania, Florida, Massachusetts, Hawaii, New Jersey, Kentucky, Michigan, Minnesota, New York, North Dakota, and Utah.

If you are required by your state to have no fault auto insurance, make sure you compare auto insurance quotes from multiple no fault insurance companies before deciding which company to go with.  Also, see if you qualify for any auto insurance discounts.  This can drastically lower your auto insurance rate.  It is possible to find cheap no fault insurance.  All it takes is a bit of effort and research on your part.

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