Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jan 30, 2020

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No-fault car insurance is a very popular term in the auto insurance industry but there is also much confusion regarding what no-fault auto insurance is and how it offers liability protection in the event of an accident.

No-fault auto insurance is based on laws that prevent having to prove fault in an auto accident, thus removing the question of liability in order to file a car insurance claim.

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While there are still many ways for a driver to be at-fault (such as reckless driving or operating a vehicle with extreme negligence) most common car accidents are determined to be neither driver’s fault, and each parties respective auto insurance policies will pay for damages to their insured policyholder.

In some states, drivers can choose between coverage under no-fault auto insurance laws or traditional tort liability (Kentucky, New Jersey, and Pennsylvania) but only 10 other states have mandatory no-fault car insurance laws in place.

The list of states who currently operate solely under no-fault auto insurance law:

  • Florida
  • New York
  • Massachusetts
  • Kansas
  • Michigan
  • Minnesota
  • North Dakota
  • Utah
  • Hawaii
  • Puerto Rico

How much is no fault car insurance?

When no-fault auto insurance laws were first introduced they were viewed as a great way to lower car insurance costs, streamline the claims process, and reduce the financial burden on courts.

While the latter parts are true the consensus of whether or not these laws have lowered car insurance rates is still debated. As far as drivers are concerned, however, no-fault car insurance laws certainly provide a number of benefits over traditional tort liability.

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Faster Claims Handling

With no-fault auto insurance, your car insurance policy pays for your damages regardless of who was at fault. Traditionally, auto insurance companies may delay paying a claim until fault is established.

Reduced Liability

Ever hear stories of people being sued for $10,000 for a case of whiplash? It happens all the time, but in states without no-fault insurance laws, your right to sue is limited to accidents which are caused by extreme negligence, certain injuries, and a small list of other reasons.

Frivolous lawsuits for minor injuries are much less common.

The key to buying auto insurance is understanding the type of coverage you are purchasing. In states where you have a choice whether or not to purchase no-fault car insurance, it’s important to understand your options as you usually waive your right to sue (except for limited events) by choosing no-fault coverage.

Would you buy life insurance without understanding the terms of coverage?

How about a new car without reading the warranty and specs?

Auto insurance is not just a necessary expense but also a key financial tool, but many drivers still do not understand the coverage they pay for until its time to file a claim.

Expand your knowledge of the policy you write a check for every month today by contacting local auto insurance companies who can explain your coverage options.

Compare auto insurance rates by using our FREE quote tool today!