Making Yourself Whole—How No-Fault Insurance Claims Work

If you are in a car accident and wish to recover your damages, you may be able to utilize your no-fault insurance coverage. These no-fault polices are available in many states and can help you get a quick payment from your own insurance company. Here are some things you need to know about no-fault insurance:

How Does No-Fault Insurance Work?

When filing a no-fault insurance claim, you will contact your own insurance company. You will enter a streamlined process of providing the necessary evidence to prove that you were injured and suffered damages due to the negligence of someone else. Your insurance company, rather than the negligent party's insurance company, will then pay you instead. These claims were instituted to help decrease the amount of litigation between each party, thus saving time and money for everyone involved. The main drawback, however, is that you may not collect the type of compensation you would if you litigated with the negligent driver's insurance, such as pain and suffering.

What Are the Benefits of No-Fault Insurance?

There are several benefits to no-fault insurance claims. One is the amount of time these claims take to process. Traditional claims can take several months. No-fault claims can be completed in a much quicker fashion, since the process is very basic. Another benefit is that the likelihood of lawsuits stemming from your accident is low if you go through the no-fault insurance claims process, since there is often no dispute with your claim.

Does Every State Allow These Claims?

No, not every state is a no-fault state, so not everyone will be able to take advantage of these types of claims. The states that are no-fault states often have different variations of the rules required for claims. Some will allow you to choose whether or not you want to purchase no-fault insurance while other states will require you to have it when you purchase your auto policy. Each state also has its own rules as to what they will and will not cover under your policy. You may find that while medical damages and medical bills will be paid, property damage may not qualify.

If you are planning to utilize your no-fault auto insurance to recover damages for an accident, be sure you speak to an attorney to make sure you understand what you will be getting. If you don't think the coverage will be enough, you may need to pursue other options with your attorney, such as McLaughlin & Lauricella, P.C.