No fault insurance, also known as Personal Injury Protection or PIP Insurance, is a type of car insurance coverage that helps pay for medical bills if you’re injured in an accident regardless of who is at fault for the accident. This type of insurance is not available in all states, but in some states it is actually required.
No fault insurance was introduced in the 1970s. The idea behind this type of insurance was to simplify the process of deciding who is at fault for the accident. Below are examples of what could be covered under this type of insurance policy if you or your passenger were to be involved in an accident:
• Funeral expenses
• Lost income as a result of your accident
• Your health insurance deductible
• Services that you may not be able to perform due to an injury, such as child rearing or house cleaning
• Expenses that exceed your health insurance coverage (depending on the state in which you live)
Items that will not be covered under this policy are damage to your vehicle, damage to other people’s property and medical expenses that exceed your coverage limit unless you live in a state that offers an exception to this rule.
If you are involved in an accident and live in a state that has no fault insurance, below are tips and information regarding this type of claim.
• Submit your claim to your insurance company rather than the “at fault” insurance company.
• Your insurance company pays damages to you regardless of who is at fault.
• You aren’t guaranteed a settlement and you will be limited in damages received.
• Pain and suffering are not damages you can receive in a no fault insurance claim.
• You do not have the burden of proving who was at fault.
It’s important to know if your state requires this type of insurance and even if it doesn’t, it can be advantageous to research PIP Insurance to see if it’s right for you.