What are some of the facts that I should know about no-fault insurance?


No-fault insurance requires some minimum coverage that needs to be purchased to satisfy the requirements of financial responsibility and it is needed to do the registration of the vehicle and obtain the license plates.  Under this coverage the following factors are covered:

  1. No-fault (Personal Injury Protection) – the cost of medical expenses, loss of wages or earnings, and other related expenses such as transportation to the medical facility for the injured people such as the passenger or the pedestrians injured by your vehicle.
  2. Liability – other people as well as their property are protected against damages caused by your vehicle.
  3. Uninsured motorists – offers protection against the injuries that are faced by you, your family members, or fellow passengers might suffer in a hit-and-run accident or if the accident occurs with an uninsured vehicle.

Personal Injury Protection (PIP) – it is called no-fault coverage as it is meant to pay immediately irrespective of who is at fault and if there was any negligence, cover medical expenses, other economic losses (health, medical, loss of wages) etc.  The limit is set at $50,000 per person, the driver as well as the passenger injured in the vehicle, any other pedestrians who might have been hit by the vehicle.

The whole aim of this no-fault insurance is to extend immediate medical care and rehabilitate without wasting any time and as quickly as possible.  Due to its no-fault law, the suits that are filed because of auto accidents will only be brought on due to economic losses which exceed the no-fault benefits and in case of non-economic damage like pain and suffering or in case a serious injury is sustained.  The cover includes 80% of lost earnings/wages with a maximum of $2,000 per month for a period of up to 3 years.  The death benefit is $2,000 that is payable to the kin of the insured.

This is a personal injury cover and does not offer any cover on property such as repairs and damages caused on the vehicle that belongs to the insured or to the other party.  This is also primarily a health insurance and pays for the injury to the person and not the property.

All the members in the household of the insured are protected against losses which arise due to injuries that are sustained in the accident and economic losses thereof.