You may have heard the term before but no-fault takes on a different meaning when talking about insurance. This type of accident occurs when a victim in an automobile accident or if a vehicle was damaged during an accident can file a claim with their own insurance company, no matter who was at fault.
Am I Entitlement to Benefits?
An example of this would be if you were at an intersection and you come to a stop. If the other car doesn’t stop, you will end up colliding. Both of you receive personal injuries and both vehicles are damaged in the accident. You and the other driver can reach an understanding that you will each file a claim with your own insurance company for the damages you received in the accident.
Insurance premiums Rise if you are at Fault
The no fault insurance claim will allow one person to make a claim on his/her own insurance without any complication or investigation. Normally, one person will sue the other person’s insurance if they did not cause the accident in order to get some type of compensation. With this type of policy claim, each vehicle owner will then file a claim with their own insurance to help pay for their medical, personal property damage, and vehicle coverage. This is sometimes not easy to file and some insurance companies will have an issue with it but in most cases, it is cheaper for each individual insurance company to handle their own customers claim as opposed to handling someone else’s’ claim.
It is important to point out that in many cases, the premiums that you are normally paying will increase by a certain amount. You may also be presented with a negligence claim for the pain and suffering if you were to be the one that caused the accident to happen. Its important to stay on top of your insurance policy at all times in order to handle these claims properly and as they come in.
In some cases, you may have to hire a lawyer in order to represent you if you are being sued for negligence. In many cases, the insurance company will hire and pay for an attorney to represent you in the court if your case should make it to that point.
In a no-fault insurance claim, it simply means that whomever is at fault is irrelevant. The issue is resolved with everyone turning to their own insurance company for payment for damages done and injuries caused by the accident. You will want to ask for assistance if you don’t understand your terms and conditions of your insurance policy. That’s why its important to read through and understand each policy accordingly when you take a policy out.