What does no-fault insurance really mean?
Here’s a great article by Joel Farar, a partner attorney, and a top rated car accident lawyer in Los Angeles.
When discussing auto insurance options with an agent, the issue of no-fault insurance is bound to arise. Before assuming that this type of coverage is necessary, it pays to learn more about what the coverage is, the benefits it provides, and how those benefits fit in with current laws. Here is some basic information that will help you decide if securing this type of auto coverage is right for you.
A Basic Definition
As it relates to car insurance, no-fault insurance is a form of coverage that will cover damages that the client sustains in an accident. With this scope of coverage, the matter of who actually caused the accident is irrelevant. The insurance provider will process a claim for the damages, determine if the car is worth repairing, and arrange to pay for the cost of that repair. In the event that the cost of repairs exceeds the market value of the vehicle, the client is offered a settlement to total the vehicle.
The key here is that the client has protection in place even if other parties involved in the accident do not. That’s important, since some people do choose to drive with proper coverage, even if it means running afoul of current state laws.
Is Anything Other Than Damage to the Vehicle Covered?
Many no-fault insurance plans provide protection for more than the client’s vehicle. Medical expenses directly related to the accident are also part of the benefits included. Should the client sustain injuries that require trips to the emergency room or a hospital stay, the provisions within the policy will help cover the cost of treatment. This is different from the benefits provided by liability coverage, since those are generally aimed at covering expenses sustained by others who are injured as a result of the client’s actions.
No-fault coverage also provides benefits for other types of losses. For example, if the client must be out of work while recovering from the injuries sustained in the accident, a portion of the lost income is provided. That helps to alleviate some of the financial stress associated with not being able to earn a living for a few weeks.