Posts Tagged ‘no-fault auto insurance’

Will No-fault Auto Insurance Pay for all Medical Bills Following an Accident

Saturday, January 14th, 2012

The question of whether no-fault auto insurance will pay for all medical bills following an accident is one that many people may be wondering about. Your Personal Injury Protection (PIP) coverage will pay for medical bills stemming from an auto accident, but only up to the policy limit you have in place. In no-fault auto insurance jurisdictions, drivers are required to have at least a minimum level of coverage in place to comply with state laws.

Personal Injury Protection Coverage

Along with paying for medical expenses following an accident, PIP coverage also pays for other expenses. The exact losses covered under this part of an auto insurance policy vary, depending on the state, but may include:

  • Lost wages
  • Funeral expenses
  • Lost services if you are unable to care for yourself or your home as usual
  • Child care expenses

The PIP portion of the policy protects you, your family members and the passengers in your vehicle at the time of the accident. Even if you were not injured, other people in the vehicle can make a claim against this part of your policy.  If this type of protection is required in your state of residence, you must buy at least a certain amount of coverage.

Drivers always have the option of buying a policy with a higher level of protection than the state minimum if they wish. This coverage offers more protection than your health insurance plan does. It’s a good idea to buy as much PIP coverage as you can afford, especially if your personal health insurance benefits are limited.

Personal Injury Protection Coverage Limits

If the level of damages you sustain in the accident are higher than the amount of your PIP coverage limit, you may be able to sue the at-fault driver in the accident for the difference. The exact threshold you must meet to be able to take legal action against the other driver will depend on where you live. In a number of no-fault states, injured people retain the right to sue if their injuries are serious and result in a permanent disability or disfigurement.

Shopping for Personal Injury Protection Coverage

When you are looking for PIP coverage, it pays to shop around. Each insurance provider determines how much it will charge policyholders independently. If you take the time to get quotes from several companies before making a decision about where to buy your policy, you will be able to find the company which can provide you with the protection you need at the lowest rates.

If you have been involved in an accident and have questions about your Personal Injury Protection coverage, contact your insurance provider to find out what types of losses are covered and what your policy limits are. Keep in mind that if your health insurance plan pays for your claim, your auto insurance company will reimburse the health insurance company for the amount it paid out on your behalf. You will not be allowed to receive benefits from two insurance providers for the same claim.

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Posted in General Car Insurance |

Do I Need Uninsured Motorist Coverage in a No-fault State

Sunday, January 8th, 2012

The question of whether you need to have uninsured motorist coverage in place in a no-fault state is one that a number of people are wondering about. Despite state laws requiring drivers to have auto insurance coverage in place, too many people don’t comply and are driving without this protection.

For this reason, insurance companies offer protection against damage caused by drivers who do not have coverage. Other products are available to make up the difference between the amount of insurance the driver responsible for causing an accident has and the actual amount of damages caused.

No-fault Auto Insurance Overview

No-fault auto insurance is a system of dealing with claims for personal injuries sustained in an accident. The injured person would seek compensation for medical bills and rehabilitation expenses from his or her own auto insurance provider. The advantage of this system is that injured people can have their claims settled more quickly than if they are required to sue the at-fault driver to recover these expenses.

In a tort state, where injured people need to sue the at fault driver to collect damages for their injuries, it can take some time to collect the money owed. The no-fault system was put in place to make it easier for injured people to have their claims settled.

Even in states which have adopted the no-fault system for auto insurance purposes, injured people may still have the right to sue if they have sustained serious injuries in an accident. In this instance, the at fault driver’s third-party liability coverage will be used to pay for these expenses. Depending on the state, the injured person may also be entitled to compensation for pain and suffering and lost wages incurred following the accident.

Uninsured Motorist Auto Insurance Coverage

Uninsured motorist auto insurance coverage comes into play when the at fault driver in an accident either does not have any insurance or cannot be identified, such as in the case of a hit-and-run. This is the part of the policy which compensates the injured person for damage is not covered under the Personal Injury Protection (PIP) provisions of his or her auto insurance policy.

The policy holder’s own auto insurance provider would pay out on the claim up to the policy limit the driver has in place. In a situation where the fault driver is identified, the insurance company would then attempt to recover the amount paid out from that individual.

Underinsured Motorist Auto Insurance Coverage

Uninsured motorist auto insurance coverage comes into play when the at fault driver in an accident has some coverage but the amount is not high enough to fully pay for the damages he or she caused. In this instance, the at-fault driver’s insurance company will pay for damages to up to the policy limit and the underinsured motorist coverage is used to make up the difference (up to its policy limit).

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Posted in General Car Insurance |

What is No-fault Auto Insurance Coverage?

Wednesday, September 28th, 2011

Under a no-fault car insurance system, people who have been injured in a car accident make personal injury claims to their own insurance company. The advantage to policyholders is that they can have their medical bills and related expenses dealt with more quickly than under a tort system, where injured people sue the at-fault driver in an accident to recover damages.

Under this type of system, the right to sue to collect damages may still exist in some cases. In jurisdictions where it is allowed, this right is limited to circumstances where the accident resulted in serious and permanent injuries. For this reason, some level of third party liability coverage is required in most no-fault states. Drivers must maintain at least a minimum level of liability coverage in place to comply with their state’s financial responsibility laws.

No-fault doesn’t mean that it doesn’t matter which driver was responsible for causing the accident. An investigation will still be conducted after an accident to determine who was at fault, and that driver will likely have to pay more for his or her auto insurance coverage after the event. The insurance company uses an applicant’s driving record to determine the level of risk that he or she presents for insurance purposes and how much to charge in premiums if the company chooses to extend coverage to a particular driver.

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Posted in General Car Insurance |

Liability Florida Auto Insurance Minimums for Drivers

Friday, September 9th, 2011

Florida auto insurance coverage is offered under a no-fault system. In this state, people who have been injured in an accident make claims for their personal injuries and damages to their own insurance provider. For this reason, Personal Injury Protection (PIP) coverage is a legal requirement for all cars carrying FL plates.

At least $10,000 in PIP coverage must be put in place to comply with state legislation. This is the part of the policy which pays for the injury claims made by the policyholder. This part of the policy also pays for claims made by family members and passengers traveling in the vehicle.

Along with PIP coverage, all drivers in the state must also have at least $10,000 in property damage coverage. This insurance is used to pay for the cost to repair the other driver’s vehicle in an accident. It is also used to pay for the cost to repair or replace public property damaged in the accident. In this instance, public property includes fences, sheds, buildings, guard rails, sign posts, mail boxes, and fire hydrants.

Uninsured and underinsured motorist coverage is not required for Florida auto insurance buyers, but it’s a good idea for drivers to add this type of protection to the policy. Uninsured motorist coverage comes into play when the at-fault driver in the accident doesn’t have any coverage to pay for the damages caused in an accident. Underinsured motorist coverage is used to increase coverage available when the at-fault driver in an accident doesn’t have enough protection pay for the damages caused.

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Posted in Florida, USA |

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