The Ins and Outs of No Fault Auto Insurance
No fault insurance can seem like a complicated subject, so it's best to start with a clarification of just what it means. It operates under the assumption that each driver has his or her own insurance policy. In the event of an accident, all damages are paid by each driver's respective insurance policies, with the intention that no legal actions will be taken by any party. No one is considered to be at fault, which removes the need to sue and lowers any legal and administrative costs involved in filing the claim.
The fact is that there is no state where every driver is fully insured, which means a fully no fault system is possible. Most states allow for the traditional liability insurance option as well as no fault. Under the liability system, each driver is responsible for his or her own actions and the damages he or she might cause. Research the state driving laws before signing up for a no fault policy in Illinois, just in case there are any particular statutes that apply.
There are a lot of pros to the no fault system. It provides medical coverage for anyone in case of bodily injury caused by a car accident. It also lowers legal and administrative costs, since no one will be sued. All of this also results in lower premiums for the policy holder.
In insurance jargon, the no fault cause is called personal injury protection, or PIP. Under PIP are other options, such as optional basic economic loss, or OBEL. The PIP packages vary from state to state, but they usually include medical compensation, wage compensation, loss-of-service compensation, funeral costs, and death benefits.
Each state has its own PIP rules and regulations. As an example, Pennsylvania, Kentucky and the District of Columbia do not require PIP, and may choose to insure themselves under the liability system instead. This is preferable for many drivers, since the no fault system does not apply to everyone, and there is always some level of personal liability in any system.
There are some cons to the no fault system, some would say. Chief among these is the cost. No fault insurance does not have to be prohibitively expensive, however, searching the Internet might turn up some great insurance deals. Another con is the essence of the system itself. No fault means that no one involved in an accident is held liable, and someone who is clearly at fault may get away freely.
Sometimes there are accidents when no one actually is the cause. They are inevitable when there are just so many drivers out there. Under a no fault system, everyone is protected, no matter what the circumstances.