What is the concept of auto nofault and personal injury protection?

Answer 1

Auto nofault:

Many people have heard the term "no-fault insurance." However, do you understand what that actually means? In short, a no-fault insurance system is an auto insurance policy required by state law in which each driver purchases auto insurance that protects him or her and limits his or her ability to sue other drivers for damages while also protecting him or her from being sued for damages by the other drivers in most cases.

Therefore, if you are involved in an auto accident, your insurance company will pay your damages, up to your policy limits, regardless who was At Fault. These limits must meet your state's minimum coverage if your state is a "no-fault" state. The other drivers involved in the accident would be covered by their insurance policies. The theory behind this system is to ensure every motorist would receive immediate coverage for damages, thereby reducing the law suits resulting from an accident. This would, in turn, help keep insurance premiums down.

Personal Injury Protection:

Personal Injury Protection is a form of car insurance that is designed to compensate for an injured person's bills, specifically things like medical bills and fees incurred as a result of a car accident. Personal Injury Protection (also called PIP) sometimes will also cover things like a person's lost wages due to their inability to work as a result of a car accident, and any other damages associated with an automobile accident. A lot of Personal Injury Protection policies even compensate for funeral costs as well as pain and suffering. The great thing about PIP is that it is "no-fault" insurance coverage. This means it covers not only the person who is insured but also other people in the insured party's vehicle at the time of the accident, as well as any people hit by the insured person's vehicle. It is designed to pay out to an injured person regardless of who caused the accident or which driver owns policy with that coverage. Another good thing about Personal Injury Protection being no-fault is that the person owning the Personal Injury Protection will not have their insurance premiums increased should they need to file a Personal Injury Protection claim. Personal Injury Protection is only available in some states. But a lot of the states that do not offer PIP do offer Auto Medical Payments coverage (also called AMP). Some states have both PIP and AMP.