2006-10-15 15:00:59 · 8 answers · asked by simply_made 4 in Cars & Transportation ➔ Insurance & Registration
No fault means that no matter who is at fault, each driver pays for their own damage, or their insurance company does. In theory this lowers insurance rates, because there is not disputes and lawsuits about who is at fault.
In practice this takes away the personal responsibility that each driver should have. If you are sitting at a traffic light, and someone runs into you, under a normal tort system, the person who hit you would have to pay for all your damages, because they were negligent in not stopping. Under no fault, your insurance pays for your damage, and you pay any deductible you have, and the person at fault does not have to pay for the damage they caused!
If you have driven in areas where there is no fault insurance, you will find that the drivers tend to be more aggressive. If they have an old car, they really do not care if the hit you, you have to pay for your damage and their car is not worth that much anyway!
2006-10-15 15:46:08 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
Usually "no fault" means that when there is an accident such as two cars colliding, each driver's insurance pays for his or her own expenses. This is intended to lower insurance rates by eliminating the need to file claims against the other driver and to go to court if necessary. Insurance companies tend to like no fault laws because the settlements are generally lower. Trial lawyers tend to not like them because they don't get as much business.
2006-10-15 15:12:41 · answer #2 · answered by rethinker 5 · 0⤊ 0⤋
The term "no-fault" auto insurance is often used loosely to denote any auto insurance program that allows policyholders to recover financial losses from their own insurance company, regardless of fault. But, in its strictest form, no-fault applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so called “limited tort” option. The first party benefit coverage is known as personal injury protection (PIP).
Under current no-fault laws, motorists may sue for severe injuries and for pain and suffering only if the case meets certain conditions. These conditions, known as a threshold, relate to the severity of injury. They may be expressed in verbal terms (a descriptive or verbal threshold) or in dollar amounts of medical bills, a monetary threshold. Some laws also include minimum requirements for the days of disability incurred as a result of the accident. Because high threshold no-fault systems restrict litigation, they tend to reduce costs and delays in paying claims. Verbal thresholds eliminate the incentive to inflate claims that may exist when there is a dollar "target" for medical expenses. However, in some states the verbal threshold has been eroded over time by broad judicial interpretation of the verbal threshold language, driving up costs.
Currently 12 states and Puerto Rico have no-fault auto insurance laws. Florida, Michigan, New Jersey, New York and Pennsylvania have verbal thresholds. The other seven states — Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah — use a monetary threshold. Three states have a "choice" no-fault law. In New Jersey, Pennsylvania and Kentucky, motorists may reject the lawsuit threshold and retain the right to sue for any auto-related injury. Colorado’s law reverted back to the tort liability system in July 2003.
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Take care – Ron.
2006-10-17 08:05:13 · answer #3 · answered by ? 2 · 0⤊ 0⤋
I suggest you to visit this website where onel can get quotes from the best companies: http://INSUREQUOTE.US/index.html?src=2YAyu6tcYpa7
RE :What exactly does "no fault" mean in NY State auto insurance.?
Follow 7 answers
2016-09-04 20:21:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It means that neither driver is "at fault" or liable for the other's injuries/damages. You must pay your own way, and only your own way. You do NOT have to pay for any damage or injury to another driver or vehicle. (You may still have to pay for injuries to your own passengers.)
2006-10-15 15:08:38 · answer #5 · answered by cyanne2ak 7 · 0⤊ 0⤋
It means you pay about 60% less for insurance.
When you have an accident, you pay your damages, bozo pays his.
2006-10-15 15:05:30 · answer #6 · answered by s2scrm 5 · 1⤊ 0⤋
That's a good question!
2016-08-23 08:51:04 · answer #7 · answered by janett 4 · 0⤊ 0⤋
It means no one was charged with the accident.
2006-10-15 15:10:31 · answer #8 · answered by firewomen 7 · 0⤊ 0⤋
I don't think this is feasible
2016-07-27 21:57:17 · answer #9 · answered by ? 3 · 0⤊ 0⤋