No fault auto insurance states are states in which no fault policies are active. New york, Florida, Michigan are the well known states. Understanding how each of the local no-fault insurance states deals with accidents starts with knowing the states that offer no fault car insurance coverage. This article is your guide to all twelve no fault states.
You will learn:
No-fault insurance coverage allows for an insured person to get compensation for losses, even if he or she was the party causing the loss. Automobile insurance is the most common type of policy that has a no-fault clause. The insurance company will pay the insurance claim of its insured even if that person did cause the auto accident. A provision of this clause is that the insured is limited in his or her right to pursue litigation regarding the issue.
Twelve states within the U.S., and also the Commonwealth of Puerto Rico, either require or make optional no-fault auto insurance clauses. In Pennsylvania, New Jersey, and Kentucky, auto policyholders may choose between no fault auto insurance and tort liability restitution options. The policyholders are required to select between the full tort and the no-fault limited tort offerings at the time they obtain or renew their coverage. Full tort is the default option in Pennsylvania, whereas no-fault is the default selection in New Jersey and Kentucky.
During the years 1970 through 1975, 24 states enacted no-fault laws, and several have since repealed those. In addition to the three states mentioned above, Florida, Michigan, New York, Hawaii, Kansas, Massachusetts, Minnesota, North Dakota, and Utah each have no-fault insurance laws. In New York, no-fault clauses resulted in a surge of claims from 1995 to present day, creating a fraudulent industry of no-fault claims. As a result, New York shortened its claims reporting and medical bill submission windows.
Helpful Links To the No-Fault States
To read more about each state individually click on the appropriate state.
The states that do not have no-fault laws offer auto policyholders full and limited tort options. This means that the policyholder can seek money through litigation for medical expenses, pain, and suffering resulting from injuries caused by an auto accident for which the policyholder was not at fault. The limited tort option in these states means that an injured party will only be able to recover a limited amount of money through litigation.
In these states, the court must consider the injury to be serious in order for it to award damage payments. Selecting the full tort option will result in higher insurance premiums. However, it can also result in the recovery of thousands of dollars due to an accident in which the person was not at fault. Check your state’s auto insurance laws to find out if it is a no fault insurance state or it follows tort auto insurance provisions.