Auto Insurance No-fault auto insurance and other auto liability systems

Phabbyfundz

Active member
State auto liability insurance laws fall into four broad categories; no-fault, choice no-fault, tort liability and add-on. The major difference are whether there are restrictions on the right to sue and whether the policy holder's own insurance pays first party benefit up to the state maximum amount, regardless of who is at fault in the accident. These alternative systems has evolved over time as consumers, regulators and insurers have sort ways to lower the cost and speed up the delivery of compensation for auto accidents.
The term "no-fault" auto insurance is often used loosely to denote any auto insurance program that allows policy holders to recover financial losses from their own insurance companies, regardless of fault. But in it strictest forms no- fault only applies to state laws that both provide for the payment of no-fault first party benefits and restrict the right to sue.
 

Mandy96

Valued Contributor
These seem like they have similarities amongst them. This can be very confusing if one is not careful or probably if the person does not know much about insurance generally. It takes an agent’s advice to know which is the right to purchase to avoid making mistakes that might be costly
 

btaliat

VIP Contributor
I wish you explain the other three. But in another word, the insured auto insurance policy can sue the company if his compensation is delayed or wants to be denied. This is because the most easy insurance to be denied compensation is auto since most time, the evidence against it is always sketchy.
 

Chibson

VIP Contributor
Sometimes when people want to purchase insurance package, it is very important that they understand the different laws guiding insurance policies. One of the best way of understanding this is to have an agent who will explain it to you. There are people that have been denied their compensation because of the simple mistake.
 

Mataracy

VIP Contributor
Though this is my very first time of hearing about this very important policy and it really look good.
In this case what I understand about the liability here is that an insured can cause accident to another person and its the duty of the insurance company to pay or repair the damages.
 

Wisdom01

Valued Contributor
Does that mean the the no fault package is only executed if the state laws covers for it, because it seems its the insurer that would benefit more , since they would get the coverage for the risk and would be able to recover the financial losses from the insurance company
 
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