If you live in one of the twelve states (DC, FL, HI, KS, KY, MA,
MI, MN, NJ, NY, ND, PA, UT) that are under a non-fault auto
insurance system, you can cause an accident, yet your insurance
company won?t pay for the other parties? damages.
This means you live in a state that both requires drivers to
carry insurance for their own protection and places limitations
on their ability to sue other drivers for damages. Your auto
insurance company will pay for your damages (up to your policy
limits), regardless of whom was at fault for the accident. Any
other drivers involved will be covered by their auto insurance
policies. Since all are required to carry insurance, in theory,
there should be no uninsured motorists in those states, I did
say in theory.
These states opted for the no fault insurance system because it
guarantees every driver immediate medical treatment in the event
of an accident. Further, it's intended to reduce the legal and
administrative fees associated with insurance claims. Again, in
theory, this should equate to lower premiums. Unfortunately,
often times the liability issues that still remain will actually
drive premium costs up.
However, because no state is pure no fault, drivers can always
be held financially responsible for the cost of injuries they
cause in certain circumstances ? that?s the loop hole. Some
states allow injured parties to sue if their injuries meet
certain standard for severity, while others allow it when total
costs reach a certain dollar level.
If you are involved in a accident, call the police no matter how
small a bump it was. Do not let the other person leave the
scene; if they try at the very least make sure you get their
number plate.
If you have a camera phone use it to take a photo of the car and
the driver if possible. It is worth buying a disposable camera
for a few $ and leave it in the glove compartment for just such
emergencies.
About the author:
Paul worked in various Insurance markets for 4 years before
starting Auto
Insurance.
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