Allowing to file lawsuit against the other negligent driver is a system known as ‘tort’, that is used by most states. The insurance companies have to be convinced that it was their own insurer that was at-fault for the accident. Having to prove that to insurance companies can be time-consuming and frustrating because they will try their hardest to not have to pay anything.
Just because all evidence is provided to them that does necessarily mean that it proves the claim to them, insurance companies will sometimes still deny the claim even if they have all the facts. This is when the person will need to hire a litigator to file the lawsuit against the driver. However, there are some states that use the ‘no-fault’ rule because pursuing a claim the other way is expensive and takes up too much time.
No-Fault Insurance Definition
If a driver filing a claim resides in a no-fault state, the process is a breeze in the park when compared to the other states using the tort system. The claim gets submitted to the person’s own insurance company, not the other driver’s insurance company. Regardless of who had the fault in the accident, the person’s insurance company will pay for all the damages and injuries that were endured because of the accident.
There is no worry about the insurance company denying a claim. It is a worry-free process without having to prove and show evidence of who was at fault to the insurance companies. The ‘no-fault’ system is much more efficient and a painless process.
But with every advantage, comes a disadvantage, and the ‘no-fault’ system isn’t any different. There is a limitation to the awards that a person can get through the ‘no-fault’ coverage. In a more traditional insurance claim, those filing a lawsuit could be compensated for everything like, general and specific damages, but with the ‘no-fault’ insurance claims, general damages cannot be claimed. General damages from an auto crash are things that cannot be calculated like, pain and suffering. Yeah, it is an easier way to file a claim, but if someone gets damages that are general, they will not be compensated for it, which they are more than likely to endure after an accident.
The Reasoning Behind No-Fault Insurance
A main reason why some states have adapted this coverage is due to it being quicker, less expensive, and practically hassle-free. Any dispute that tries to be made through a ‘no-fault’ coverage is not relevant at all. Because of that, insurance companies just asses the damages and pay the insurer. Quick and easy.
There are circumstances that will allow the person to file a lawsuit against the other careless driver, but that is only when the damages and injuries that the driver endured were severe and significant. Most claims do not even end with a lawsuit because the ‘no-fault’ coverage reduces the possibility of disputing a claim.
States that Adapted No-Fault
- D.C
- FL
- HI
- KS
- KY
- MI
- MN
- NJ
- NY
- ND
- PA
- UT
However, within these states, there are variations. Some states use ‘choice no-fault’ which gives the person the ability to choose whether they want the no-fault or the insurance system that is more traditional. Even amongst these states, they each have their own laws explaining what can be claimed through the ‘no-fault’ system. Most will allow specific damages to be claimed, but some of these states will have property damages be claimed through the other driver’s insurance company, not their own. It may be helpful to speak with an attorney from the Percy Martinez law firm.
A personal injury lawyer with over 20 years of experience, Ryan Malnar serves Colorado Springs with honesty & integrity.
