What is a fault based car insurance policy?


Car insurance is an exhaustive subject that covers a broad spectrum of topics. If you do research in this field, you might probably get frustrated and even tired with the number of options that you might have. Since it is not something that you can master in the matter of a day or so, you need to be absolutely sure that the policy you are going in for is in fact the right kind of policy for your vehicle at your budget. If for some reason you have a doubt regarding its usefulness, you should check to see if there are any other alternate options.

One of the requirements in a majority of the states across the country is to have a fault based policy. This is a policy wherein the party that is responsible for the accident pays for all the damages that have been incurred in the accident. This is done so that people will think twice about breaking the rules and driving fast. Since the party that is responsible for the accident will have to pay for both the damages, it is going to be an expensive affair and hence, might prevent drivers from driving recklessly on the roads.

While a fault based policy is not required in all states, it is an absolute necessity in some states.  If you are one of the drivers who has this policy, then you should know the procedure involved if you are involved in an accident. The first thing that you ought to do is to report the accident to your insurance provider and make sure that they have been informed about all the damages involved. Once this has been done, they will determine how much of the claim can be released, and how much of the expenses should be borne by you.

Finally, a fault based policy is often the more expensive option to have. Most of the people who do go in for this policy do so because they are forced to do so by the law. If it is possible, you should try and avoid this kind of policy. Even the claim procedure is quite complicated and you might have to work hard to get the money proving that you were not the guilty person. As one can deduce, this means footing the bills of the attorney and taking out a lot of time in order to pursue the case, none of which are things that you would want to do ideally. On the up side, you do get more money on the claims if you win the case, which is a definite good thing.