During the last several decades, many states have passed some sort of no fault car insurance legislation that is designed to help drivers quickly seek financial relief and file timely car insurance claims. However, many people mistakenly believe the term to mean that no one is actually at fault in a car accident, but this simply is not the case. The term no-fault car insurance simply means that drivers deal with their own insurance companies—regardless of who is at fault. This allows drivers to quickly file claims, seek medical treatment and repair their vehicles instead of waiting for insurance companies to determine who is at fault.
In most cases, no fault car insurance coverage will provide the same type of coverage as standard comprehensive collision coverage in most states. Typically, many no-fault car insurance policies will provide coverage for accident damage repair, bodily injury as well as personal injury protection.
The only real difference with no-fault car insurance is that you will probably be required to file a claim with your own insurance company, even if the other driver is at fault. However, if you are found to be not at fault in the accident, your insurance premium rates should not increase. If the other driver in the accident is at fault, your insurance company should negotiate settlements with the other party’s insurance company, and collect damages at the company level.
Even if you live in a no-fault car insurance state, you are not legally required to maintain comprehensive collision insurance. If you are the legal titleholder on a vehicle, you can still choose to maintain only the legally minimum required amount of insurance on your vehicle. In almost all cases, you are only required to maintain liability car insurance coverage.