Traditional auto insurance relies on the tort of liability. If a person is at-fault for an accident,then he must compensate the victims under the law. The funds will only be released to the injured party after blame has been determined. The coverage is always for the damages incurred by the other party and not one’s self. However,some states deviate from this school of thought in favor of a no-fault system.

What is No-fault Auto Insurance?

Under this system,it does not matter who caused the accident,even when a car accident law firm can prove it. Those who were injured in the aftermath will get compensation by their own insurance providers. There is no need to go to court just to prove the other person’s negligence. The funds can thus be released faster and with a greater amount of certainty. This also solves the problem of collisions with uninsured motorists. Note that the implementation of this system differs from one state to the next.

The Right to Sue

One consequence of this system is that victims are restricted from seeking damages from the other parties through the courts. This has good and bad sides. Courts are no longer burdened with tens of thousands of auto accident cases each year. They can hear other cases and lessen their backlogs. On the other hand,this could limit the maximum amount that victims can recover. There are a few no-fault states that have retained the right to file lawsuit for civil damages.

The Right to Choose

There are states that let motorists choose between the traditional liability and no-fault systems. In short,no-fault insurance is optional. It is possible to switch once they renew the contract. Those who do not make a choice may get either of these systems by default. Check with your state and your to learn what the default option is.