Do you live in a no fault auto insurance state? Many people do not know what this means or how it works. But, in every situation, it defines what you need to do after a car accident occurs. If you have car insurance, it is essential for you to understand what your coverage offers. Who lives in a no fault state, then?
What Does No Fault Mean?
In general terms, no fault auto insurance means the driver’s own policy covers the losses from an accident. In an at fault state, the car insurance policy of the driver responsible for the incident generally pays for the damages for the victim’s vehicle. In a no fault state, fault does not matter. If you cause the accident, your policy pays for the losses you suffer. The other driver’s policy pays for the losses to their car. This is a simplistic way of covering losses in accidents.
However, there are limitations on this. In some cases, drivers can sue the other driver when costs are exceedingly high or accidents and losses are severe. This can mean different things in each state. It might mean you need additional coverage for your driving liabilities.
Which States Have This Requirement?
There are 12 states as well as Puerto Rico that are no fault states. These includes:
- New Jersey
- New York
These states have verbal thresholds. This means individuals in these states can sue for severe injuries or pain and suffering when verbal thresholds occur. A description of the severity is all that is necessary to file a lawsuit.
In the following states, a monetary threshold exists. This means individuals can sue the other driver for losses when the losses reach a specific monetary value.
- North Dakota
The state sets these minimum monetary values.
In these states, the driver can reject the lawsuit threshold as noted. And, they can then retain the right to sue for any type of auto injury that occurs.
- New Jersey
There are additional stipulations here.
Take into consideration what your state’s laws are. You need to choose auto insurance right for your needs. You also need to meet the state’s requirements. Your agent will work closely with you to determine what type of coverage is best for your needs. Every situation is unique, but all drivers should be up to date on how to file a claim if an accident occurs.
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