How a No-Fault Car Insurance Liability Coverage Affect Injured Drivers

One requirement that all drivers in any part of the US are required to prove is the capability to compensate a person whose property they may damage or who they may injure in case of an accident. While this proof of capability may be shown through posted bonds or whatever state-approved means, the most basic is carrying an auto liability insurance policy.

While there are different types of automobile liability insurance coverage, three of the most common types are the limited tort, the full tort, and the no-fault or personal injury protection (PIP). In limited tort automobile liability coverage, the premium that a driver pays is lower compared to full tort coverage; however, as its name suggests, there is a limit as to what a victim in an accident can actually claim from the at-fault driver’s auto insurance provider, namely, the cost of medical treatment, but only for that which is related to the injury sustained in the accident. In full tort auto liability coverage, the parties involved in an accident have the right to file a civil suit against each other for purposes of proving fault and seeking compensation for whatever damages the victim in the accident may have, and will still, suffer. Compensation covers cost of medical treatment, lost wages, and pain and suffering among others.

The third type of automobile liability insurance coverage, the no-fault or personal injury protection (PIP), covers medical expenses needed by the injured driver and his/her passengers, lost wages due to days off from work, and funeral expenses if the accident is fatal (no-fault coverage, however, does not compensate a person for his or her damaged property; a separate property damage liability insurance will have to be purchased by the driver for this purpose.

No-Fault car insurance liability coverage presents drivers the following benefits:

  • faster payment of compensation since there is no more need to file a lawsuit to show who really is at fault in the accident
  • payment of lower premiums as there are no longer court fees to be paid
  • the drivers involved in the accident are paid by their own insurance provider, regardless of whose fault the accident is

Irrespective of the type of liability insurance a state requires on drivers, the Spiros Champaign Law Firm, explains that the most common problem encountered by car accident victims is having their claims paid or receiving the right amount of compensation, that is, of course, assuming that their application for claims is approved in the first place – a thing that has been a source of discouragement to many drivers because it appears that many insurance providers are more prone to denying claims rather than approving and paying these.

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