After a car accident, you want to recover and get back to your routine as quickly as possible. Depending on the insurance all involved parties have and state law, you may have limited options for pursuing a claim.
The Insurance Information Institute explains how no-fault insurance works. Understand how to recover financially and physically when involved in a car accident in a no-fault car insurance state like New York.
Breaking down the no-fault system
One primary goal of the no-fault system is to remove small claims from courts. Insurance providers in no-fault insurance states compensate customers for minor physical harm, no matter who bears responsibility.
“No-fault” usually makes drivers think about insurance policies in which a motorist’s policy covers specific losses, no matter who bears fault. At its roots, “no-fault” only applies in geographic areas where coverage providers pay first-party benefits. These areas also limit legal options parties may explore.
In true no-fault states, insured drivers must have personal injury protection, which is first-party benefits. Policyholders in states with comprehensive coverage get compensation for lost wages, medical costs, out-of-pocket expenses and funeral costs. Policies vary dollar limits on medical facility expenses, lost income and burial expenses.
Under specific circumstances, no-fault state drivers may take legal action for severe harm. These circumstances are the tort liability threshold. Medical bills costs are the financial threshold, and significant disfigurement and death are the verbal thresholds.
You may save yourself a lot of time and frustration by understanding how no-fault insurance works. The more you know, the better informed you are about making the right decision to recover.