| Read 3 Drawbacks of No Fault Insurance |
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| Written by Asif L Shaikh |
| Saturday, 09 April 2011 00:16 |
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A no fault insurance policy pays for your car crash losses, even if you are not at fault for the car accident. Yet still, I have found 3 main disadvantages of having a no fault auto insurance policy.
A no fault insurance policy pays for your car crash losses, even if you are not at fault for the car accident. Yet still, I have found 3 main disadvantages of having a no fault auto insurance policy. The first draw back is that... 1. You Still Have to Cover Car Damages Despite what people think, a no fault insurance policy doesn't really pay off all of your damages. If you were in a accident, you might still have to pay for your vehicle repair. This is because the policy only will pay for your car accident injury fees and lost working income source. If you'd like cash for any car repairs, you will have to proceed with the same basic steps as someone who lives in a fault state. Consequently you will have to begin a accident claim from the other vehicle driver's liability auto insurance or collect money from your own auto collision coverage. The drawback with this is that getting money for your auto repair are usually confusing and stressful. A lot of people don't understand how the claims process works. They make a number of rather simple mistakes that wind up costing them lots of money. Most people do not understand that the insurance company works hard to give them the minimum settlement possible because, they are after all, a business looking for profit. Because of that, many drivers have complained about getting incredibly low settlement checks that will not fully cover their repair prices. It's possible to steer clear of the frustration of launching an auto accident claim against another car driver by getting compensated from your own collision coverage. Nonetheless, in this case you will have to pay your insurance deductible, which is usually roughly $500 per car accident claim. The next downside of a no fault car insurance policy is that it.... 2. Doesn't Necessarily Pay All Your Medical Bills Should you be injured in a collision, your no fault car insurance policy will simply cover your medical charges up to your insurance policy limits. If your medical charges are more than your policy limits, you'll need to start an car accident claim with the other driver's auto insurance company. Then again, before you can think about your insurance claim, you'll have to exceed your no fault state's minimum cash threshold. This cash threshold is the minimum amount your medical charges must be before you can file a auto accident claim against another vehicle driver. Almost every no fault state has a different cash threshold. So before you even start seriously considering filing an auto insurance claim, you will have to check if your total medical fees fulfill your state's threshold requirements. Or else you will likely need to pay for your costs from your very own own pocket, which sometimes can easily set you back a lot of money. The third problem with having a no fault car insurance policy is that.... 3. You Aren't Getting Money for Pain and Suffering Having a no fault policy prevents you from being compensated for your pain and suffering from the accident. It really is a big disadvantage to this car insurance policy because in virtually all personal injury settlements, the largest amount of your cash settlement is because of your pain and suffering. In case you're significantly injured and want more money, you'll need to surpass your state's "injury threshold". This injury threshold is basically the state considering your injuries and concluding if they are severe enough to start a personal injury claim. As you can tell, the question of "serious" vs "non serious" injuries is often rather subjective. If your state is convinced your injuries aren't absolutely serious, then you will not be able to be compensated for your injuries. That is why its essential you fully understand your no fault state's requirements and the way to calculate your personal injury settlements. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Read more about insurance claims and injury settlements |