You’re driving along and suddenly another car rear-ends you. The other driver says it was your fault, but you know it wasn’t. Now what?
No-fault insurance, a.k.a. personal injury protection (PIP), is a type of insurance that covers you in the event of an accident, regardless of who is at fault. It is typically required by law in dozen states, and it can cover a wide range of expenses but not car damages. They are covered by your liability or collision insurance policy.
Twelve states require drivers to carry PIP as part of their no-fault insurance policy. PIP covers medical expenses and, in some cases, funeral costs, lost wages, and other damages.
Not all accidents are covered by no-fault insurance. If you are involved in an accident that is not covered by your policy, you may be able to file a claim with the other driver’s insurance company or sue the other driver directly.
Is no-fault insurance optional?
No-fault insurance is NOT optional in 12 states. Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New York, North Dakota, Utah, New Jersey, and Pennsylvania.
In some states, no-fault insurance is required to cover only certain types of expenses, such as hospitalization and rehabilitation. Medical payment insurance is required in some states to cover these expenses.
What does no-fault insurance cover and what does not?
No-fault insurance covers hospital, funeral, and medical expenses caused by a car accident. It also covers income losses if you’re unable to work.
No-fault insurance does not cover property damage or injuries to people who were not in your car. Also does not cover damages to other property, such as another car or a fence, nor does it cover injuries to the other driver or their passengers.
In conclusion…
No-fault insurance is a great option if you want to cover as many risks as possible and protect yourself from economic losses. It can help you recover from an accident and get your life back on track.
But if you get in a car accident without an insurance and you’re not in fault you can visit stablemark.com for tips on what to do in such a case.