Why are the parties in an auto accident compensated by their own insurers rather than by the insurer of the driver at fault?
A – This change in accident insurance dates back to 1978, when the Quebec auto insurance plan was drastically amended in order to simplify and speed up claim processing. Private insurers agreed that they would no longer go after the insurance company of the driver at fault to recover indemnities paid out to the not-at-fault driver. The goal was to reduce the time and expense of settling a claim. Since 1978, auto accidents have been settled under the Direct Compensation Agreement, which all insurers use to settle claims. Are you 0%, 50%, or 100% at fault? To find out, the insurer consults the Direct Compensation Agreement, which covers virtually all possible accident scenarios.
Related Questions
- If I undergo a collision, and it is the other driver’s fault, will property damage coverage offer coverage to repair my auto if the at-fault party has no coverage?
- Why are the parties in an auto accident compensated by their own insurers rather than by the insurer of the driver at fault?
- What determines who is at fault for an auto accident?
