No Fault Car Insurance coverage laws are popping up across the country, and consumers are quickly becoming the victims of much more than traffic accidents. There are a number of reasons why the true cost of this type of auto insurance coverage is higher than most drivers can or are willing to pay. The idea was to streamline the claims process and in some instances, requiring the claim to be paid in as little as 30 days.
What’s No Fault Auto Coverage?
No Fault Car Insurance is a new type of auto insurance coverage that places the responsibility for repairs arising from a traffic accident, not on the individual that is responsible for the accident, but on each individual automobile owner. This means that if someone runs into your car, you are responsible for the damages they caused to your vehicle. You will also be responsible for any injuries you sustain along with the injuries of any passengers in your vehicle, despite of who is at fault for the fender bender.
What Should You Know about No Fault Insurance Coverage?
Personal Injury Protection (PIP) is a mandatory choice in the states with No Fault Insurance coverage laws. These policies cover the insured for any injuries sustained. But in a “No Fault” system, it leaves a lot of room for fraud. There have been issues with the laws governing who can report the medical status of the claimant making it easy for bogus claims to be filed costing the insurance companies millions and increasing the premiums for the honest policy holder.
Clinics that provide the medical diagnoses for the insurance coverage claims are, in some jurisdictions, subject to extremely limited regulations in how they receive their licenses. In some cases, it has been found that these so called clinics do not even have medical personnel but are staffed by what amounts to be witch doctors.
In Detroit, policy holders have been required to purchase PIP policies that have no cap to the damages that are paid pushing premiums as high as $6000 per year. This has also increased the prospects for fraud, as the damages that are paid can now be for the life of the victim. Now all one has to do is find an appropriate clinic, who will claim that the victim requires lifetime care which then results in a fraudulent insurance coverage claim that can be valued into the millions quite easily.
No Fault Insurance coverage is about the same as letting people get away with a hit and run; however, in those cases there’s legal recourse should the perpetrator be apprehended. In the states that have chosen to require these types of insurance coverage policies, the victim of a car accident is then victimized again as they will most likely face an increased premium, even though they were not at fault.
Instead of calling it “No Fault” Insurance coverage, perhaps it should be renamed: “No Accountability” Insurance coverage.
Related Links to Insurance Coverage:
Basics of Auto insurance Coverage
Learn more about auto insurance coverage
Problems with No-Fault Car insurance
