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The laws of the state in which the accident occurs determine who pays for the damages from an automobile accident. Basically, in a no-fault insurance state, fault is not placed on either party, and each driver generally submits a claim to his or her own insurance company instead of establishing blame. Many states, including Florida, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, Pennsylvania, and others, have some form of no-fault insurance laws. No-fault auto insurance is widely misunderstood, and is applied differently in every state that offers it. If you are in an automobile accident, you should contact an experienced personal injury firm to discuss how the relevant state law views fault and to determine how fault or no-fault laws may affect your right to recover damages for injuries.
How no-fault insurance works

“No-fault insurance” describes any automobile insurance system that requires drivers to carry insurance for their own protection and limits their ability to sue other drivers for damages. In an accident under a no-fault system, your auto insurance company will pay for your damages up to your policy limits, no matter who was at fault for the accident. Other drivers involved in the accident are covered by their own automobile insurance policies.

Under a pure no-fault system, drivers would be entirely covered by their own policies and could never sue any other driver for damages, but no state currently uses a pure system. All no-fault states use parts of the no-fault system and parts of the standard-liability system, under which a party is responsible for the cost of damages he or she causes, so lawsuits are permitted under some circumstances in all states.

The amount and type of no-fault insurance required varies from state to state. Some states allow injured parties to sue if their injuries are severe, while others allow suits if the total costs reach a certain dollar level. Many modified no-fault systems pay for economic damages up to the policy limit, but allow the injured party to sue for non-economic damages if the amounts of these damages are greater than a specified amount. These thresholds also vary from state to state. Therefore, you should contact a personal injury law firm experienced in car accidents if you are in an accident in any no-fault state to determine and analyze the relevant laws.

Choice no-fault
Choice no-fault insurance laws create two classes of insured drivers in some states by retaining parts of both the no-fault and the traditional fault-based systems. Pennsylvania and New Jersey have implemented versions of choice no-fault laws. Under a choice system, drivers choose whether they want to be insured under a no-fault plan or retain some traditional tort rights similar to modified no-fault. For example, if a driver chooses a pure no-fault plan, he or she may not be able to sue negligent drivers for non-economic damages, but he is also immune from such suits. However, if the driver retains traditional personal injury suit rights, he or she can sue other drivers who have also chosen to retain their tort rights, but, in exchange, they can sue him or her. An experienced attorney can help you work through the complicated issues regarding fault, whether you are in a fault or a no-fault state.

A no fault insurance policy
If you live in a no-fault state, the no-fault part of your auto insurance policy is usually called personal injury protection (PIP). Different states’ PIP packages cover different expenses, but benefits generally include most injury-related expenses, including medical costs, lost wages, compensation for loss of services, funeral expenses, and death benefits. Some damages, such as pain, suffering, emotional distress and inconvenience, are generally not covered by no-fault insurance coverage. Also, medical expenses or lost income above any established limits are not covered, and other insurance coverage is typically needed to cover physical damage to vehicles.
Conclusion

Although no-fault, in its purest form, would arguably simplify recovery of damages for automobile accident injuries by entirely eliminating any concept of fault, no state currently has a pure no-fault system, and it is unlikely that any state will ever adopt one. The current no-fault and fault systems vary significantly from state to state, and can be very confusing. An attorney experienced in motor vehicle accident cases will be able to help you sort through the applicable state laws and choose the path for recovery that’s best for you.

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Many drivers ignore motor vehicle insurance requirements, cannot afford to purchase insurance, or carry insufficient insurance. Uninsured motorist coverage is a form of insurance that pays for bodily injury that results from an accident with a driver who is legally responsible for the injuries, but has no liability coverage. Underinsured motorist coverage pays for bodily injury that results from an accident with a driver who has liability insurance with limits that are lower than the injured party’s underinsured motorist coverage limits. If you have been involved in an accident with an uninsured or underinsured driver, it is important that you contact an attorney at an experienced personal injury law firm immediately so you do not waive valuable legal rights.

Uninsured Motorists
Typically, uninsured motorist coverage protects injured drivers if the at-fault driver has no insurance. Uninsured motorist coverage can also apply when someone is injured in an accident with an unidentified hit-and-run vehicle. If a person has uninsured motorist coverage and is in an accident with an uninsured motorist, he or she can collect from his or her insurance company to recoup damages. If you are involved in an accident with an uninsured motorist, you should consult with an experienced personal injury attorney before you file a claim with your insurance company to ensure that you obtain all of the coverage available to you.

Underinsured Motorists
Underinsured motorist coverage provides compensation for injured drivers when the at-fault driver does not have enough insurance coverage to compensate the injured party in full for his or her injuries. An “underinsured motorist” is generally a person who is responsible for the injuries, but who has opted to purchase only the minimum policy required by law. If a person has purchased underinsured motorist coverage is in an accident with an underinsured motorist, he or she may be able to collect from his or her insurance company to recoup damages that are greater than the responsible party’s limits.

Collecting benefits
In order to collect underinsured or uninsured motorist benefits, a party generally must first establish that the underinsured or uninsured driver was at fault and that he or she suffered significant injuries. In the case of underinsured motorist benefits, the injured party must also collect the at-fault driver’s policy limits before collecting under his or her own insurance policy. An insurance company is typically entitled to a credit for any recovery received from the underinsured motorist’s policy.

Stacking Insurance Coverage
Uninsured and underinsured motorist coverage is “stackable” in some states and under some policies. Stacking uninsured or underinsured motorist coverage may permit a person to add together either insurance coverage from several motor vehicle policies or insurance coverage for several vehicles listed on one policy. In some cases, a person may select stackable coverage at the time he or she purchases the insurance.

Uninsured and underinsured motorist coverage protects a person if someone who does not have adequate insurance injures him or her in an automobile accident. If you are in an accident with someone who is uninsured or underinsured, do not settle with the other driver’s insurance company without first contacting an experienced lawyer. Some underinsured motorist policies are not required to pay if the insured person has settled with the other driver’s insurance company. This can be a very costly mistake. Therefore, you should consult with a personal injury law firm experienced in dealing with automobile accident cases before you settle any portion of your claim. An attorney can provide you with the information and support you need to obtain the best result available to you.

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