No fault auto insurance will pay for claims regardless of who is at fault. This type of insurance was developed to reduce the cost of liability charges that are bound to happen with lawsuits and the lengthy time it takes for claim adjustments.
The states that don’t go by no fault auto insurance are called Tort states. In these states the fault is decided at after an accident occurs and the insurance company for the driver at fault will pay up. But in no fault states both parties are covered for medical costs and wages without deciding which party is at fault.
There are negatives to no fault insurance that could cause inflation of premiums. This system causes increased insurance fraud and makes Insurers purchase their own medical bills. Still in all states premiums are decided by accident rates and density of population.
Located in Worth, Illinois, Reta Insurance Agency can help you get the best out of your auto insurance. Contact us for a quote today!