The Difference Between No-Fault Coverage and Traditional Tort Coverage
Indeed, all drivers make it a point to know everything about their auto insurance policy that they can. Unfortunately, the subject can be somewhat confusing and complicated â€” especially to new drivers who’ve just procured auto insurance coverage. Even those who had been driving for a considerable amount of time should be attentive to new changes in insurance policies of their respective states, and new options and coverage being instituted by the auto insurance sector. Needless to say, every driver should self-educate and be an informed consumer for his own good. With up-to-date information and know-how you can benefit from your auto insurance policy. Two types of coverage that most people are unfamiliar with are no-fault coverage and traditional tort coverage.
No-fault coverage was instituted to help drivers avoid costly legal expenses. With this coverage the parties involved in an accident will merely have to file a claim for damages with their respective insurance provider regardless of who is at fault. This is generally true to all small claims. Advocates of no-fault coverage assert that this coverage is a better deal than the traditional tort coverage due to many advantages it can offer the policyholder. Some of the main advantages of no-fault coverage are that the policyholder â€” on average â€” pays lower auto insurance premiums, he or she won’t have to spend time or money going to court to settle accident claims, and he or she will likely see faster insurance claim payouts. Some states will allow a no-fault policyholder to go to court in cases where the accident is extremely serious and the dollar threshold or limit has been reached.
Traditional tort insurance coverage, on the other hand, mandates that the injured party be allowed to seek accident compensation directly from the party at fault. It takes into account the person that is at fault and to what extent in order to determine what the at-fault party and their insurance company have to pay. To many, traditional tort coverage gives more justice to the injured. This is because, under this sort of policy, the insured receive compensation not only for economic-related costs, like medical bills and lost wages, but the person will also be able to get remunerated for pain and suffering incurred in the accident.
As with driving itself, when it comes to auto insurance coverage, it’s always good to be ahead a few good steps. It’s important to know everything there is to know about this topic, as it could potentially affect your future. Auto insurance is such a significant subject and safety device for all drivers. Therefore, dedicate yourself to being a well-informed policyholder, familiar with premiums, your policy’s fine print and the details about your coverage options. It is also important to compare auto insurance quotes on an annual basis to ensure that you have the best deal.