No-Fault vs. Tort Liability (Non No–Fault) Car Insurance
In the event of an accident, the way in which claims are settled varies by state. States in which both parties involved in the accident receive compensation from their own auto insurance company and have a limited ability to sue, regardless of who is at-fault for the accident, use the no-fault auto insurance system.
Typically, states that do not employ a no-fault auto insurance system use a tort liability system. In these states, the at-fault party is responsible for paying the other party’s damages. If a dispute arises a party may sue to determine negligence in a court of law
No-Fault Car Insurance
States that utilize a no-fault auto insurance system require drivers to carry car insurance liability coverage, which helps protect them from lawsuits in the event of an accident. The main purpose of this system is to lower costs and facilitate timely medical payments because you receive compensation through your own insurance company rather than through litigation against another party. Depending on the state, drivers may still bring suit in certain circumstances, such as in the event of severe injury or death.
There are currently 12
states that use variations of the no-fault auto insurance system:
| Florida Hawaii Kansas Kentucky Massachusetts Michigan || || Minnesota New Jersey New York North Dakota Pennsylvania Utah |
Auto-Owners offers car insurance in 26 states, including 8 states that employ the no-fault auto insurance system. For more information on the legal requirements in your state, or for a discussion about obtaining car insurance from Auto-Owners, locate an independent agency in your area and speak with a knowledgeable auto insurance agent today.