No- Fault Auto Insurance is a type of car insurance policy that basically covers for medical bills of each of driver when an accident occurs. Each driver and their passengers gets compensation from their insurance companies instead of having to go through numerous legal processes seeking compensation from the driver at fault.
The No-Fault policy limits the victim driver of the accident from taking legal action against the driver at fault unless the medical bills are too high beyond a certain amount or in case of too much property damage. When an accident occurs, the driver at fault’s insurance company pays a little more than the victim’s company to compensate for property damage. As a result, the premiums of the driver at fault will rise when they renew their contract for the next period.
Places with No-Fault Auto Insurance
No- Fault motor insurance is mainly province or state based and each state/ province might have a slight difference from another. In a some places this type of Insurance is compulsory while in others there are limitations. N0-fault car insurance is popular in Australia, Canada and the United States.
How much is a No-Fault Auto-Insurance
Costs of No-Fault car insurance will vary with the state or the province and premiums might be different for different companies. Unless you are a careful driver, your premiums will go up whenever you cause an accident and you have less chances of getting discounts from Insurers.
What are the disadvantages of no-Fault car insurance?
States with a No-Fault Auto insurance system are actually rated to have the highest premium rates. It is sometimes hard to lower insurance costs for consumers with this type or motor insurance and it can be quite discouraging. Reckless drivers can also take advantage of the No-Fault policy because the only punishment they get is raised premiums and a higher risk rating.
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