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No-Fault Auto Insurance |
With no-fault automobile insurance policies, the policyholders get paid for their losses from the insurance company regardless of whose fault the accident was. The reality of it is of course that close adherence will be taken to the state law requirements that maintain jurisdiction over the insurance (and require no-fault). The stricter ones may also restrict your ability to sue. Though even then you may have the ability should there be serious circumstances that aren’t addressed within the system. The laws include verbal agreements (thresholds) and monetary limits which often fail to holdup due to those abusing the no-fault system.
Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Massachusetts, Minnesota, North Dakota, and Utah currently use No-Fault auto insurance in their insurance requirements for motorists. Florida, Michigan, New York, New Jersey and Pennsylvania use verbal thresholds while the rest utilizing monetary thresholds.
Some Specifics
New York: There has been a significant increase among medical payments made in the New York for personal injury. This is due in many ways to fraud. The millions of dollars lost in this area alone are costing policyholders serious increases in their annual premiums. The trends are still getting worse. There is legislation on the agenda now, which would require claimants to prove more to actually receive benefits. Other fixes such as allowing insurers to hold payment until they are sure the payments being asked for are necessary. The idea behind it is placing the burden on those claiming to prove they actually need the benefit, while deterring many fraudsters from even bothering trying.
Michigan: The highest no-fault payments in the US are in Michigan where there is an unlimited personal injury benefit by law. As a state Michigan is 57% higher than the national average. This means very expensive premiums since the companies have to pay all of that from somewhere (the policyholders’ pockets). Many simply don’t drive thus avoiding it. With it comes a whole other kind of medicine, one which flourishes within all of the spending. There are legislative proposals arising which could include limiting the benefit, recovering more of it in other health insurances, and rewards for those who can get themselves treated.
New Jersey: The judicial branch recently favored a fee schedule which sets the rates for various treatments that are often used for auto accident victims. This limits what the insurance companies have to pay for care under their policies to a uniform scale. It’s implementation took a lot of effort to research, develop, and bring this through to law. Much of the work was done by the New Jersey Medical Society. In the end, many unneeded costs are being cut, while victims are actually receiving treatment instead of hassle.
Florida is also experiencing a noticeable rise in automobile insurance costs as well as some government focus on correcting it within their legislative branch. Among all the No-Fault states, there are changes underway mostly due to abuses of the systems as they currently exist.
Reference: https://low-insurance.org/top/no-fault-auto-insurance/.
For more information regarding no-fault auto insurance in your area, contact your local independent agency for details.
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