What Is a No-Fault Insurance Law?
Updated on September 6, 2022 | by Benjamin Garfield
Most drivers are familiar with the insurance requirement to file a claim with their insurer after being involved in an auto accident. This requirement does not indicate that the policyholder is at fault. Instead, it is a necessary notification to your insurance company. This notification lets them know to start investigating the circumstances of your collision to determine what next steps need to be taken.
What Are No-Fault Insurance Laws?
Like the typical insurance policy requirements, these insurance laws require each driver to file a claim with their own insurance company after an accident. In states with no-fault auto insurance laws, drivers must purchase personal injury protection (PIP) when obtaining auto insurance. PIP is necessary coverage that people living in no-fault insurance law states must add to their coverage policy. The term “no-fault insurance laws” can be misleading because it is usually used to denote an auto insurance system in which a driver’s insurance will pay for certain losses regardless of who is at fault. Conversely, the term strictly applies to states where insurance carriers must pay first-party benefits, and there are zero restrictions on a driver’s right to file a lawsuit.
Which States Have No-Fault Insurance Laws?
There are currently twelve states that have no-fault insurance laws, as well as Puerto Rico. No-fault insurance law states include:
- New Jersey
- New York
- North Dakota
The no-fault laws in each of these states have varying thresholds of application. For example, the last seven states on the bulleted list above operate via a monetary threshold, whereas the first five have verbal requirements. In a few states, drivers may reject the no-fault lawsuit threshold and sue for accident-related injuries on their own grounds. States that allow drivers to reject the no-fault lawsuit threshold include New Jersey, Pennsylvania, and Kentucky.
Do No-Fault Laws Affect Car Insurance Prices?
The price of auto insurance has been steadily increasing over the last few years. For example, in the State of Florida, drivers paid the 5th highest insurance bills in the United States. PIP premiums, which are a requirement in no-fault law states, increased 25% in 2015 and 2016. These conditions led to a recent Florida House vote to repeal the no-fault law. For additional information regarding new laws that can impact your personal injury claim, consider consulting with a personal injury attorney.
What Do I Do If I Live in a No-Fault Law State and Have Been Involved in an Auto Accident?
Due to the complicated nature of personal injury incidents, the best way to protect yourself and your rights are to retain legal representation. Some attorneys offer free consultations, as the Florida no-fault insurance law specialists at Michael T. Gibson P.A. Insurance coverage, fault laws, and liability can be highly complex to navigate without proper legal advice. After a car crash, injury victims are faced with several issues. These problems include medical expenses, property damage costs, and time off work. If injuries are severe, medical treatment may be extensive and time-consuming. Employing the services of a legal professional can help ease the tension associated with each of these stressors.
If you live in a no-fault law state and have been involved in a motor vehicle crash, the most important thing to focus on is your recovery. If you have issues regarding the result of your accident or are unsure about a recent Senate bill’s impact on your case, contact a legal professional. As always, your medical care takes precedence above all other elements of your case. Document your condition, keep track of your medical treatment, and get plenty of rest.