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There are twelve states in the United States which have No-Fault Insurance programs, including New York, Florida and Pennsylvania. No fault automobile insurance is also available in Washington, D.C. In the event of an accident caused by you, No-fault insurance coverage extends to your car only and not the other party. The main reason for no-fault automobile insurance is to decrease lawsuits following traffic accidents.

In states where there is no-fault insurance, you are limited to how much you can obtain in a lawsuit and each company will pay for the damages to the car of the drivers who were involved in an accident through no fault of their own.

There are two reasons why some states have No Fault insurance. The first is to make sure that all drivers have access to immediate medical care if they are involved in an accident, without questions.

No Fault insurance limits the amount obtained by clients in lawsuits filed following traffic accidents. Everyone involved is deemed to be not at fault, no matter who causes the accident.

In some cases, the cost of no-fault insurance raises the amount of insurance premiums for all policyholders because the insurance companies have to pay out, whether or not their insured was at fault. This type of insurance punishes safe drivers who maintain a good driving record while rewarding those drivers with poor driving safety records. Comparison-shopping in the states where no-fault automobile insurance is available can ensure the lowest possible insurance policy premiums.

Under No fault insurance, each party involved in an accident is required to file a claim with their insurance company. This is aimed at eliminating the abuse of unnecessary medical testing. Following accidents, some drivers will go to chiropractors for years in hopes of obtaining a significant settlement in a lawsuit. No fault insurance eliminates abuse of the medical and legal systems and allows those who need treatment to seek medical attention for injuries.

No fault automobile insurance has both good and bad qualities. On the bad side, it offers no incentives for safe drivers by offering a safe driver discount.

However, it does manage to cut down on frivolous lawsuits and unnecessary medical costs and insures that anyone in an accident can receive the medical attention they need.

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