What States Have No Fault Insurance?
Some states have enacted no-fault auto insurance laws in a effort to help control the cost of insurance. If you live in a no-fault state, it is important to understand the effects of no-fault insurance.
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Background
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Traditional fault insurance puts the responsibility of the costs of an accident on the party in fault. This can result in court battles to determine who was at fault and problems for victims of uninsured at-fault motorists.
Function
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No-fault insurance makes the individuals responsible for their own costs resulting from an accident without determining fault for payment purposes. An insured driver who has an accident would collect all costs from their own insurance company.
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Identification
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Thirteen states have enacted some form of no-fault auto insurance: Utah, Pennsylvania, New York, North Dakota, New Jersey, Michigan, Minnesota, Massachusetts, Kansas, Kentucky, Hawaii, Colorado and Florida.
Significance
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Proponents of no-fault insurance point to quicker payment of claims and reduced legal costs and lower insurance premiums as benefits.
Limitations
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No-fault insurance do not allow suing for pain and suffering reimbursement. All no-fault plans have a threshold amount of cost or seriousness above which traditional fault insurance rules apply.
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References
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Comments
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Joseph Doughty
Nov 01, 2009
Thanks for this article. States have the most trouble with the transition from at-fault to no-fault. Many people get caught unaware of their lack of coverage until it's too late. People need to inform themselves about their own auto policy coverage.
