Within the twelve no fault insurance states, seven states enforce no fault as a monetary threshold. No fault auto insurance law describe monetary threshold as the dollar limit an insured person must first exceed before they can sue the person responsible for the injury. Otherwise, the injured person has to collect the reimbursement from their own no fault policy provider. These seven monetary threshold states are: Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah. You can read more about monetary threshold at “Basics of No Fault Insurance.

The injured individual will need to file a general no fault claim with the carrier, explaining the basic details of the accident. The carrier will then review this information, make a decision regarding approval, or request more information. Once a claim is approved, the injured insured will usually be required to complete additional insurance claim forms relevant to medical expenses and lost wages.

Read how to process no-fault insurance claim

Once the expenses paid have reached the policy limits, the injured individual may be able to collect money for additional relevant expenses by suing the party who was at fault in the accident. Each no fault state has its own guidelines regarding when an injured individual may sue the at-fault driver. Insureds should learn the no fault policy limits and litigation procedures within their respective states.

If litigation does become a reality, the injured party should consult with an attorney prior to embarking on this process. Some attorneys specialize in no fault auto insurance claims and they will provide advice and guidance through this legal procedure. It is important to have someone knowledgeable on the team because this person will make sure that all paperwork is filed within the required time frames.

The auto insurance carrier will guide the injured insured through the no fault insurance claim process. Once the maximum payment has been received under this insurance policy, the injured party may be able to sue the party responsible. It is recommended that an attorney be retained during this process to ensure that the maximum amount of compensation is obtained through litigation.

The insurance claim process should be detailed within the insurance policy and the no fault law that exists in the state. There are several steps and both the insurance carrier and the victim, or his or her survivors, share responsibility in the claims process. It is important to adhere to the filing deadlines in order to receive the maximum amount of compensation.

Filing No Fault Insurance Claim

The claim should be filed with the insurance carrier by the injured party within 30 days of the accident. Appropriate forms can be obtained from the carrier or the state insurance commissioner. The claim form will include information such as accident date, accident details, and a requirement to provide proof of damages for which payment is being requested. The insured should then file an insurance claim relevant to specific losses such as lost wages and medical expenses. The forms for these can also be obtained through the insurance carrier or the state.

Once it has received the initial claim submitted by the insured, the insurance company will establish a claim file. It will provide the claimant with a claim number and additional claims forms specific to the case. The claimant should provide this claim number to hospitals and doctors when seeking medical treatment. If the claim is approved, the insurance carrier will usually make the benefit payments within 30 days of the expense and notification to the insurance company.

If the claim form is incorrect or incomplete, processing time may be delayed. If the claim is not filed within the statute of limitation time frame, the benefits under the no fault provisions may be denied. The insurance carrier also has requirements to pay the injured insured within a specific period.

No fault insurance provides an injured party with compensation for injuries sustained in an automobile accident, regardless of who was at fault. The injured party is compensated directly by his or her auto insurance carrier rather than litigating the issue with those responsible. In exchange for this easier and expedited payment method, the insured is limited in the right to litigate the issue further.

The Commonwealth of Puerto Rico and twelve U.S. states have no fault insurance provisions. Drivers within these states must have no fault coverage, with the exception of Kentucky, New Jersey, and Pennsylvania, where drivers may choose from either fault or no fault. All insurance companies providing coverage to drivers within these states must offer no fault insurance to their policyholders.

No Fault Insurance Providers

These insurance carriers range from the large companies like GEICO, Allstate, and State Farm to the smaller entities operating within the state. Some states have insurance companies that cater only to employees of the government and other member organizations that fund the company. An individual can retain this coverage after he or she has left the employ of one of these entities and the premiums for this coverage are often much lower than those of the large carriers.

When a driver takes up residence within a no fault insurance state, obtaining auto insurance coverage within the state is one of the first things that must be done. Most states stipulate a certain window of time within which the driver’s license, vehicle registration, and auto insurance must be updated. Drivers who do not follow these guidelines may be subject to fines if they are discovered or are pulled over by a police officer for another offense.

Obtaining no fault auto insurance is not difficult because the topic will usually be initiated by the insurance carrier during the application process. In the states of Kentucky, New Jersey, and Pennsylvania, the individual will need to select between fault and no fault insurance coverage at the time of the initial insurance application and each renewal period. It is mandatory that drivers within no fault insurance states possess the relevant no fault auto insurance coverage during their period of residence.

Pennsylvania, New Jersey, and Kentucky laws permit auto policyholders in their states to select between fault and no fault coverage. Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New York, North Dakota, and Utah mandate no fault auto insurance coverage for residents. These states have either a quantitative monetary or qualitative verbal threshold for injuries prior to tort liability entitlement.

The no fault provision within auto policies reduces premium costs and allows injury payments to be expedited. The irony of this is that several of the no fault insurance states have the highest auto insurance premiums in the U.S., New Jersey being one. However, this may be because the financial savings resulting from no fault coverage makes it a popular option in places that have a higher risk of automobile accidents.

What To Do When Shopping for Cheap No Fault Insurance

When shopping for no fault auto insurance, consumers should conduct research in order to find the best deal. Some Web sites provide quotes from several different insurance carriers, allowing an individual to view the coverage details and price of each policy side by side. If the consumer already has a preferred insurance carrier and will be moving to a no fault state, he or she should consult with the insurance agent to get a price quote for no fault coverage.

Finding cheap no fault insurance is not difficult, but it will require some shopping around. The Internet is a great source of information, as is calling insurance carriers that provide coverage in no fault states. Though no fault coverage is designed to reduce insurance premiums, it does not hurt to reduce them even more by finding the cheapest rates on no fault policies.

Minimizing insurance fraud is a big plus for states, insurance companies and clients. Having no insurance fraud, or minimizing the cases of insurance fraud saves car insurance companies millions per year. Not only that, but the benefits will affect the agency’s insureds through cheaper premiums as well as honest and reasonable pricing by the insurance company. One state that has implemented a system of action to prevent no-fault auto insurance fraud is Florida.

One of the ways Florida No-Fault Insurance minimizes insurance fraud is, in certain situations, by requiring the injured insurance carrier to undergo an examination by an independent health care professional. If the insured person wants to collect relevant compensation with their insurance claim, she or he must abide by this process.

This method is effective and it benefits all parties involved. It helps clients with continuous low premium insurance coverage. It also helps the state minimize no-fault auto insurance fraud while giving the insurance companies the profit their business seeks. I would like to see more effective ways to decrease no-fault fraud, but on the bright side, Florida’s insurance system is heading in the right direction.

Auto Insurance is one of the most important purchases one can make. It will protect you and your family in many ways. This video, featuring Lisa Laliberte, explains thoroughly what auto insurance is, it’s benefits, the different components that are included in an auto insurance policy, and what you may and may not need included within the policy. Watch this video on insurance basics to make better financial decisions for you and your family.

Liability Insurance Coverage
Liability Coverage pays for the injuries or damages you cause other people or their property. There are two types of liability coverage:

1. Bodily Injury Liability
2. Property Damage Liability Odor

Each state has its own law of determining the minimum coverage for the above liability coverage. New Hampshire, South Carolina, Virginia, and Wisconsin do not require drivers to carry any liability coverage. However, you still do this kind of coverage. It is recommended that you carry more than your state minimum coverage for your protection.

Medical Payments Coverage Protection

1. You and your passengers
2. You as a pedestrian injured by a car
3. You as a passenger in someone else’s car

Medical Payments Coverage Particulars

1. Pays medical bills up to $5,000 per person
2. No deductibles
3. No waiting periods

No-Fault -Personal Injury Protection (PIP; only in states like Florida and Michigan)

1. Pays for lost wages
2. Rehabilitation expenses

Read more about No-Fault Insurance and check out all the states that offers no fault insurance policy at “Basics of No Fault Insurance“

The third kind of insurance coverage is the uninsured and Underinsured Motorist Coverage. Uninsured Motorist Coverage pays for you and your passengers when you get in an accident with uncovered motorist. This kind of coverage will compensate for:

1. Medical bills
2. Rehabilitation expenses
3. Low wages
4. Pain and Suffering

Collision and Comprehensive Coverage

This coverage is required in many states because, in most states, the uninsured and under-insured coverage policies apply to bodily injuries, but does not apply to damage on one’s vehicle.
Collision
Collision Coverage applies when you are in an accident involving:

• Another Vehicle
• Objects
• A telephone pole
• A guardrail
• A building
• An overturned vehicle

Comprehensive Coverage
Comprehensive Coverage applies to losses involving:

• Fire
• Theft
• Vandalism
• Broken glass
• Hitting an animal
• Flood or hail damage
• Other damages not caused by a collision

Deductible

This kind of coverage has a deductible, or the amount you pay before the insurance company pays for the damages. The common deductibles for a collision is $500 or $1000. For comprehensive coverage, it is $100 or $250.
If your vehicle is being financed, your lender requires you to carry this kind of coverage until the loan is paid off. Important to note: No insurance provider will pay to repair a car for more than its worth.
Other services provided by insurance providers (optional, but highly recommended):

• Towing and Emergency
• Road Service Coverage
• Rental Car Reimbursement

How Automobile Insurance Rates Are Determined:

• Your residence
• Your Age
• The car you drive
• How often you drive
• Type of coverage
• Amount of coverage

Low Cost Auto Insurance Tips for Teens

1. Keep teens off your policy as long as you possible can.
2. Think older cars for younger drivers. (This will lower your premium.)
3. Get your child on the least expensive car in the house.
4. Ask for discounts when shopping for auto insurance for:

• Being a good driver (avoiding tickets and accidents)
• Having multiple Cars
• Partaking in driving programs
• Having good grades

5. Stay honest and accurately provide your information. If you’re not honest, it will come back to haunt you eventually. And, most likely, it will cost you even more.

Please feel free to leave your input and/or share these tips.

5 Tips For Lowering Your Auto Insurance Rate

1. Shop around. Prices ranges sometimes from up to hundreds of dollars. Policy pricing is always changing. Shopping around will help you find a better rate.
2. Improve your credit score. Even I didn’t think of this one. Who knew your credit score will effect your auto insurance rate?! Times really have changed.
3. Buy a safe car. There is no doubt that a safer car will improve your chances of getting a nice deal.

Raising your deductible might be an option

4. Raise your deductible. Increasing your deductible by $1,000 can reduce your rate by 15%. That’s well worth it, in my opinion.
5. Eliminate Collision coverage as necessary.
6. Intentionally look for discounts. If you want a lower auto insurance coverage, you have to search for it.

I hope this video was beneficial to you in learning how to get a better deal on your next auto insurance coverage.

Under NY common law and the Federal RICO statute, GEICO is seeking over $9 million in treble and compensatory damages. It also wants to prohibit payment of over $8 million in pending related claims. Four months prior, GEICO filed several lawsuits against other individuals thought to have submitted similar fraudulent no fault claims.

“No-fault fraud has become rampant in New York”

GEICO New York operation Regional Vice President Seth Ingall stated, “No-fault fraud has become rampant in New York and knows no boundaries. GEICO will take immediate and decisive action to defend our policyholders and will use all available remedies to pursue those who seek to steal from New York consumers.” Mr. Ingall went on to say that regulatory and legal reform of New York no fault laws, providing insurers with effective ways to deal with such fraud, is well past due.

The insurer works with state, federal, and local agencies and law enforcement bodies to uncover no fault insurance fraud. It also continues to increase public awareness regarding the issue. The Insurance Information Institute reports that fraudulent no fault claims within New York are higher than the U.S. average by 111 percent.

According to the National Insurance Crime Bureau, property and casualty insurance fraud adds about $250 to average insurance premiums each year. GEICO’s experience reveals that no fault insurance fraud is not limited to certain healthcare providers or medical specialties. It is a broad-spanning issue that requires immediate legislative changes.

Source: Business Wire. Insurancenewsnet.com. GEICO Files 3 New Lawsuits Challenging Thousands More Suspect No-Fault Claims Totaling $17 Million.