| No Fault Insurance : The Biggest Advantages |
 |
 |
 |
| Written by Asif L Shaikh |
| Friday, 08 April 2011 23:55 |
|
Exactly What is No Fault Auto insurance? A no fault insurance policy, often known as Personal Injury Protection (PIP) insurance policy, automatically pays for your medical-related bills, lost wages as well as some injury related expenses, regardless of whether you were responsible for the motor vehicle accident. The amount of cash that you get is determined by your PIP benefits limits, which you'll find are listed in your policy declarations page.
Exactly What is No Fault Auto insurance? A no fault insurance policy, often known as Personal Injury Protection (PIP) insurance policy, automatically pays for your medical-related bills, lost wages as well as some injury related expenses, regardless of whether you were responsible for the motor vehicle accident. The amount of cash that you get is determined by your PIP benefits limits, which you'll find are listed in your policy declarations page. Not all states require you to carry a no fault auto insurance and each one has different limits on their policy. You verify your states PIP limits to see the exact amount of your benefits. Example: New York is a no fault state that offers the following PIP benefits: The cost of a basic PIP coverage is $50,000. 80% of your lost wages from work are covered and up to a maximum of $2,000/month for three years. Maximum of $25/day for replacement costs for one year. These cover bills you have to pay due to your accident like hiring a cleaning person, baby sitter, traveling expenses etc. A $2,000 death benefit for people listed as beneficiaries under your PIP benefits. This could be for your spouse, parents, or kids. Pros of No Fault Insurance The most important benefit of holding a no fault policy is that you are certain receive money (up to your policy limits). In fault states, the amount of money you can get is not definite since it depends on how much you can prove the other vehicle owner was responsible for your car crash. This really is pretty inconvenient simply because you have to gather evidence against the other car driver and go through the steps involved in filing an auto accident claim against another driver's liability car insurance. Another benefit of having a PIP policy is you get your money more quickly. The reason being that you are doing work directly with your own insurance company instead of another driver's policy provider. The auto accident settlement process against another insurance company can take anywhere between a few months to years to finish. This can mean that you would have to wait until the end of the car accident settlement before receiving a check for your medical fees and lost income. Below are some other added benefits of having a no fault policy: You don't need to pay a high deductible for your medical expenses. Your medical bills are paid much faster. Your lost income wages are recovered. You do not have to prove someone was at fault for your crash. You can't be sued if you caused an auto accident. You save time by not filing a auto accident claim. You save money by not hiring an expensive personal injury lawyer. However, your PIP benefits only cover up to your policy limits. If your medical bills are more than your policy limits, then you will have to start a accident claim and follow the same steps as if you lived in a fault state. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Read more about http://aftercaraccidents.blogspot.com/2011/01/how-to-negotiate-more-money-from-car.html and personal injury settlements |