No-Fault Auto Insurance

Posted on by Forest in Autos, Car Insurance

No-Fault Auto Insurance – I had never heard of no-fault insurance so when I saw it I had to go and find out a little more. So what is it and is it a good idea?

No-Fault Auto Insurance

It doesn’t mean that you get out of accidents and are insured for things to not be your fault, that would just be insane! However it is a type of insurance that is available for people who don’t want to wait to get the cash to fix up their car, fix themselves up or whatever is needed after an accident.

With typical insurance “fault” has to be determined before the insurance company of the causer of the accident pays out. This is a process, that like any involving potential dig into a profit-making companies profit, can take time.

However no-fault means that your insurance company will pay out to you straight away. Fault will still be determined and this can affect your deductibles and if you premiums will rise but the hold-ups will be something you can avoid.

No-fault auto insurance isn’t 100% perfect though and does have some ups and downs like any other. It costs more, you are bound by rules affecting your ability to sue in many cases and of course if you are at fault your premiums may sky rocket.

Still, it’s very interesting and something to consider.

If you are interested then it is definitely worth reading more on Wikipedia’s No-Fault Insurance page.

Do you use No-Fault Auto Insurance and has it worked as advertised? Have you used it in the past and dropped it for any specific reason? Are you thinking about getting it?