No-fault car insurance can be a controversial topic and has been in the state of Michigan. It is a type of insurance that helps those who have it reduce the chances of heading to litigation or reducing potential litigation costs. This insurance pays personal injury claims promptly most of the time includes personal injury protection (PIP). It helps to pay the medical care of each insured person after an accident.
When a car accident occurs and patients are rushed to the hospital in a no-fault insurance state, if the patients file claims with their providers, the insurance companies must pay those claims. The claims must be paid even without knowing who was at fault for the accident. The claims filed typically cover medical expenses and lost wages if the patients miss time away from work.
Here's where the controversy surrounding no-fault insurance comes in. This type of insurance policy does not cover property damage. So, when you are involved in an accident, the medical bills and lost wages are covered, but the damage to your car is not covered and the damage to the other car is not covered. This means you can still be held liable for damage claims. This is why residents in no-fault states should also acquire property damage liability coverage.
Those who criticize no-fault insurance point their fingers towards an increase in possible fraudulent claims. These policies make it easier to obtain payment for medical costs, injuries and lost wages. Because of this, fraudsters tend to stage fake accidents and fake injuries in an effort to defraud insurance companies for money.
Those who argue in favor of this insurance argue that car accidents are a common occurrence and that victims should be given access to medical treatment as quickly as possible.
The basics of no-fault insurance can be confusing to some. An experienced motor vehicle accidents attorney can help guide you through this type of insurance if it is something that might interest you.
Source: esurance, "No-Fault Car Insurance," accessed June 09, 2017