|
Liability insurance is your main financial defense
against catastrophic damage you might cause to
others or their property. But it's not always
clear who's to blame for an accident, and proving
fault, when it is possible, can entail delays
and expensive legal action. Meanwhile, the victims
may not get paid.
Enter no-fault insurance, an attempt to take
the fault out of liability. The idea is to have
accident victims' medical expenses paid by their
own insurance companies, regardless of who is
to blame for the accident, thereby eliminating
the costs and delays of legal actions.
Plans that reduce the fault element in some way
have been enacted in about half the states and
the District of Columbia. Some of those states
have adopted "add-on" plans that increase
the benefits you can obtain from your own insurance
company but do not restrict your right to pursue
a liability claim. No-fault laws vary greatly,
but they do tend to have some elements in common.
Your insurance company pays you and others covered
by your policy for medical bills, lost wages,
the cost of hiring people to do household tasks
you are unable to perform as a result of injuries,
and funeral expenses up to specified limits.
No-fault plans don't pay for property damage.
This is covered by other parts of the policy.
No-fault plans don't pay for pain and suffering.
For that you have to be able to sue someone.
You usually can't sue others until expenses of
the type covered by the no-fault insurance exceed
a certain level. By the same token, you are immune
to suits by others until their costs exceed that
limit.
To protect themselves against fault-based suits
permitted under no-fault regulations, drivers
in some states must also buy traditional liability
insurance. But liability payments may be reduced
by compensation received under the no-fault provisions.
Add-on no-fault plans generally provide benefits
similar to, but less generous than, the pure no-fault
programs, and the injured person has the right
to sue for pain and suffering.
|
