No-fault insurance covers all risks stated within the policy regardless who is at fault. The no fault automotive policy will provide protection in the way of covering medical payments. Such protection is referred to as: Medical Payments coverage. Persons residing in “no-fault” auto insurance states are well-advised (too) to carry uninsured motorists insurance.
Once again (and in other words), no-fault insurance implies: If an individual is involved in an automobile accident; or their car is damaged, the only entity he or she needs to contact is his or her automotive insurance carrier. It does not matter who is at fault: whether it is the policyholder or the other party as to the accident.
No-fault insurance protection will pay for lost wages and medical bills specified within the terms of the no-fault insurance contract or policy. Expenses above and beyond what is stipulated within the no-fault insurance contract are not covered. Additionally, as it pertains to no fault insurance; laws are different from one state to the next.
The legal stipulations of the (respective) state must be considered alongside the terms of the contract. The rules of the state may come into play when an insured is technically not at fault; however, must pay out-of-pocket expenses beyond the limits set by his or her automobile policy. In such case: one option, which may be available to the insured is to sue the person who is truly responsible for the mishap.
Certain states have laws in place according to who can sue whom: This is particularly true where injuries incurred are severe. Other states have rules where (once again) a party can sue the responsible party with respect to fault if the non-responsible party is required to pay out-of-pocket for damages beyond the scope of the insurance contract.
States such as New Jersey and Pennsylvania have enacted what is referred to as an Optional Modified Plan. The plan allows the persons seeking automotive insurance two ways to go: One way is to purchase insurance where the insured does not have the latitude to sue the other party: even if the other party is technically at fault. The second option overrides the restrictive no-fault guidelines; and allows the person, not responsible for the accident to initiate legal proceedings against the individual at fault.
Particular states are not considered no-fault insurance states. In the preceding case, assignment of accident fault is left up to the insurance carrier. No fault insurance has its advantage. The policyholder, inside a no-fault insurance state can receive immediate assistance from his or her insurance provider. In other words, he or she will not need to wait for their insurance company to battle it out with the other carrier as to which party is mainly at fault.