Pros and Cons of No Fault Insurance
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UPDATED: May 24, 2021
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No Fault Insurance has been gaining press lately, thanks to specific states that require this type of insurance. No Fault Insurance has caused a considerable amount of controversy, thanks to the set-up of the insurance itself. To simplify the concept, No Fault Insurance is an insurance type in which the insurance holder uses their own insurance for any accidents or insurance claims, even if the accident was not their fault.
Every type of insurance coverage has positives and negatives. No Fault Insurance has some benefits and some consequences, making it a perfect type of insurance for some, and the wrong type of insurance for others. Those who live in states that allow car owners to choose between various types of insurance will want to go over the pros and cons of No Fault Insurance before making their final decision.
The Pros of No Fault Insurance
One of the major benefits of No Fault Insurance is the general amount of coverage that you receive with the insurance itself. You do not need to worry about suing another individual for any accidents they may have caused, especially when dealing with those who are not covered by car insurance. Your own insurance policy will cover your own bills and damages, regardless of the party “at fault” during the accident.
Another benefit of No Fault Insurance comes in the form of the speed with which payments process for any necessary claims. Insurance agencies do not have a choice, as the coverage specifically states that they must cover the damage. No “at fault” disputes and no interrupting court cases helping to make the process quick and painless.
The Cons of No Fault Insurance
One of the major drawbacks of No Fault Insurance is the fact that individuals will have to pull out claims on their own insurance, even when they did not cause the accident. This can be difficult for many, as premium rates can go up, even thought the insurance holder was not at fault.
Because of the “no fault” stance in no fault states, the individuals who have caused the accident cannot be sued. Individuals have no choice, and cannot sue the individual who caused the accident for the damage or for any of the pain and suffering that may be caused because of the accident. While this helps to avoid any potential lawsuits, it allows bad drivers to get away “scot-free”.
No Fault Insurance policies can be great insurance policies for many of the drivers on the road. With that being said, there are plenty of people who would rather utilize the regular, traditional insurance practices. Anyone who is looking into this insurance type should check out the lowest quotes for No Fault Insurance. The free quotes that we bring you will make it easy for you to choose the cheapest insurance available, whether it be No Fault Insurance of any other type of insurance coverage.