No-fault auto insurance does not mean that an insurance company does not ascribe fault to a particular individual in an auto accident. When someone has this type of insurance and is in a collision, payments for medical bills and automotive repairs will come from his or her own insurance provider, no matter who was at fault.

On behalf of Joseph Caprara of CBLAW posted in Car Accidents on Friday, October 3, 2014.

No-fault auto insurance does not mean that an insurance company does not ascribe fault to a particular individual in an auto accident. When someone has this type of insurance and is in a collision, payments for medical bills and automotive repairs will come from his or her own insurance provider, no matter who was at fault.

The benefit of no-fault insurance is that people do not have to deal with another person’s insurance company or wait for insurance providers to determine who caused an accident. This can mean that people are able to receive settlements sooner than they would otherwise. Additionally, if the other person involved in the accident does not have insurance, someone with no-fault insurance is still covered.

With no-fault insurance, an insurance provider will still identify an individual or individuals as being responsible for a collision; this can be anywhere from zero to 100 percent responsible. An insurance provider may do its own investigation into an accident, so even if police deem that no one is responsible, the insurance provider may still consider an individual to be at fault. If someone has been deemed responsible to any degree for an accident, even a small amount, their premiums may go up.

Even if someone is going through their own insurance provider following an auto accident, they may still need to negotiate in order to obtain a fair settlement. Insurance providers often want to settle for the lowest dollar amount, and people may end up paying for medical care or vehicle repairs out of their own pocket if a settlement is not satisfactory. A personal injury lawyer could assist someone who is dealing with an insurance provider and help them obtain a settlement that is appropriate for their circumstances.

Source: IBC, “No-fault Insurance: What’s it All About?,” Oct. 2, 2014