What is no fault car insurance?
No fault car insurance is meant safe guard drivers from high financial risk. It indicates a system where drivers are required by law to carry auto insurance. This is for the protection of ones self and through this there are limiting factors in suing another driver for damage caused. Under no fault laws the insurance company will pay for all damages or up to the amount stipulated in the policy, no matter who was responsible the accident. True no fault systems do not exist, even in states that claim to carry no fault policies. Instead, elements of the liability system are also incorporated, thus lawsuits are still a viable option in select cases. No fault insurance results in immediate medical attention to drivers and reduced legal fees. This is beneficial to those insured because it means lower insurance premiums.
No fault car insurance is a kind of vehicle coverage by which victims of an auto accident can be compensated by their own insurance provider, no matter who caused the accident. This is different from what happens under the traditional tort system of compensating victims of accidents. With the tort system, the person(s) who is at fault is required to compensate any victims of the car accident. The idea behind no fault insurance is to keep small claims from being settled in our expensive legal system. To accomplish this aim, no fault insurance restricts the injured party’s right to sue the negligent driver in instances where the loss dips below a particular threshold. Two types of thresholds are typically used: verbal thresholds Uses a written description to determine when the injured party regains his/her right to sue. For instance, someone may regain tort rights if an accident caused a serious handicap, such as the permanent loss of a bodily ability. dollar thresholds A dollar threshol
