Q:What is no-fault insurance and how does it apply to my case?

A: No fault insurance and it’s applications to personal injury cases vary from state to state. Many states currently use a partial no-fault system, which is used in conjunction with other laws and regulations. Because of this wide variation, no-fault insurance is widely misunderstood, and can be very confusing for motorists attempting to file a claim. States such as Florida, Kansas, Kentucky, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania all use no-fault insurance, but with widely varied applications. If you are involved in an automobile accident in a state that uses the no-fault system, you should quickly contact a personal injury attorney familiar with how your states relevant laws interpret the no-fault concept. A knowledgeable personal injury lawyer will be able to help you determine how fault or no-fault laws might affect your case, and your right to collect compensation from others.

Q: “But how does No Fault work?”

A: In simplest terms, no-fault insurance states put no burden of blame on either driver, and regardless of blame, each individuals insurance company is responsible for his or her damages. This means that under a no-fault system, each motorist is responsible for carrying insurance that protects them in case of an accident, and limits their ability to sue any other driver for their injuries or damages. If you were involved in an accident in a no-fault state, the idea is that your insurance will reimburse you for damages and injuries up to your limit, even if you were at fault for the accident. Any other motorists involved in the accident would similarly be covered by their own insurance.

Q: “But what if my no-fault policy limit is too low to cover all my expenses?”

A: In a pure no-fault system, you would be entirely covered by your own insurance and would not have an option to sue another driver. However, no state currently employs a purely no-fault system, so you have the option to sue. All of the states that currently use the no-fault system do so on a partial basis, also employing parts of the standard-liability system, which allows lawsuits to recover damages from individuals who caused the damage. A personal injury attorney will be able to interpret the no-fault and standard liability laws applicable to your state and your specific case, and help you to pursue the course that will allow you the greatest possible settlement.
 

Q: “Under what circumstances am I allowed to sue?”

A: The fact that no-fault insurance requirements vary from state to state means that the best way to assess your potential to file a valid personal injury lawsuit is always to consult a personal injury attorney from your state. The interactions between no-fault and standard liability laws can be very confusing. Some states allow lawsuits for any severe injury, but each state has a different definition of severe. Other states allow a lawsuit if the total damages are equal to or more than a specific dollar amount. Some no fault states allow lawsuits for non economic damages, but only after a certain amount has been reached. These amounts vary from state to state, but if you contact a personal injury law firm, their experienced personal injury lawyers will already have intimate knowledge of the laws pertinent to their practice state.

Q: “How do I Know if I have No-Fault coverage, and what does it cover if I have it?”

A: A common term for no-fault policy coverage is personal injury protection. (PIP). If you scan through your policy description and see this term, it means you have no-fault coverage. If you read the description, you will quickly see what your personal policy covers. If you still have questions regarding your policy, contact your insurance company and they can explain your coverage. In general, PIP policies cover most injury related costs, such as medical bills, lost wages and loss of income, loss of consortium and services, funeral expenses, and wrongful death coverage. Damages are not usually covered, so a lawsuit must be pursued to be compensated for things such as pain and suffering, and other emotion related side effects of an accident or personal injury. Another type of insurance is also usually needed to cover the damage to a vehicle. The coverage of your no fault policy has a cap, or limit, as well, which means that any loss of wages or medical expenses above that number will not be covered.

The theory of no-fault insurance in a pure form would help to simplify the recovery process for injured motorists. The reality though, is that no-fault insurance, when used in conjunction with standard-liability laws, is a confusing and convoluted interaction of regulations. Although a pure no-fault system would simplify matters, it is very unlikely that system will ever be implemented. An attorney who is experienced in motor vehicle accident cases in your state will be able to guide you to the best recovery options for you.

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