A number of states have passed 'no-fault' laws meaning
that a person injured in an accident is covered by his or
her own insurance. In these states the injured parties do
not have to prove who was at fault. However, if the amount
of damages in an accident goes over a 'threshold-level' most
of these states allow persons to sue the driver who may be
considered at fault.
No-fault states are different from tort
states. In tort states payments to injured parties are
only made after responsibility for the accident has been established
and then the person responsible pays for damages.
No fault was enacted to save consumers money. In many cases
the expense of law suits to determine responsibility for an
accident were pushing up the costs of insurance to all drivers
and making it hard for injured parties to be compensated.
In most no-fault states, PIP or personal
injury protection insurance is required to cover the cost
of a driver's injuries when there is no-fault.
Other Auto Insurance Terms & Definitions
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