No-fault insurance is a type of automobile insurance that pays benefits to an injured person without regard to who was at fault in the accident. This video will help you understand what no-fault insurance is and how it works.
What is No-Fault Insurance?
The purpose of no-fault insurance is to pay for your medical bills and/or lost wages after an automobile accident, irrespective of who was at fault. No-fault auto insurance is a requirement in some states, but it is voluntary in others. Personal injury protection, or PIP, is another name for no-fault insurance. The purpose of no-fault insurance is to pay for your medical bills and/or lost wages after an automobile accident, irrespective of who was at fault. No-fault auto insurance is a requirement in some states, but it is voluntary in others. Personal injury protection, or PIP, is another name for no-fault insurance.
Michael Levites from JurisQ Legal Network is educating people about frequently asked questions in personal injury law. In his recent episode he has Hebert F. Lawrence from Law Offices of Herbert F. Lawrence over to talk on the subject in detail.
What do experts say?
Here’s what Herbert has to say when asked who pays for treatment sustained in car accidents:
“ Well, normally, when you purchase insurance in New Jersey, you’re offered something known as PIP that stands for Personal Injury Protection. Okay, and then front, as in most insurances, there are different levels of protection, the wisest thing to do is to choose a very high level.
Generally speaking, $250,000 is a an adequate level generally. But you have to opt for that, you don’t get it automatically. Many people want to save money, and they get the lowest coverage which is $15,000. Fortunately, it’s a false savings. Because if they have to use that coverage. Treatment is much more expensive these days than $15,000.”
Explaining further he says,
“So if you if you elect above the 15,000 that’s just for an example let’s say you get $100,000 verdict. But you only had 15,000 and PIP and your bills amounted to over $100,000. You could conceivably get nothing because your bills would eat up the difference. So it’s a much better idea when you’re purchasing insurance to get a higher level of coverage.”
How Does No-Fault Insurance Operate?
Being accountable for the results of one’s actions is one of society’s fundamental tenets. This fundamental principle is in conflict with a no-fault insurance system. In a no-fault insurance system, responsible drivers fund reckless ones. The at-fault driver is not discouraged from engaging in wrongdoing except from a premium rise.
Even if they have a spotless driving record, innocent victims’ premiums will probably go up as auto insurance system, the driver who was at fault for the collision has insurance to cover any losses.
Limitations on No-Fault or PIP Insurance Coverage
You should choose a coverage limit for your no fault policy that meets your needs, just like you would for other insurance coverages. If you’re in a car accident, this limit will influence how much your insurance company will pay out in claims. Your insurance premiums for this coverage are also influenced by it.
Examine your health insurance, what it covers, and the cost of your deductibles to help determine how much your coverage limit should be. You should also think about how additional costs, such as lost wages or necessary services, may affect your family in the event that you are injured in an accident. Additionally, it’s crucial to keep in mind that many states have PIP insurance minimums.
Check out the full interview by Michael Levites to understand more about no-fault insurance policy and other general yet crucial information on personal injury law.