If you are in a car accident with someone who is not covered by their own insurance, it can leave you in a major bind when you have damages. However, you can utilize a no-fault policy in some states to help you get a payment from your own insurance agency. The following are some things you should know about no-fault insurance policies:
How No-Fault Insurance Works
The first thing to do when filing a no-fault claim is to contact your insurance agency. This will kick off a process that will require you to provide evidence that will demonstrate your losses, injuries, and other damages due to the negligence of another person. Your insurer will then pay you directly instead of getting paid from the negligent party. No-fault insurance began as a way to decrease the amount of time spent going back and forth between both parties involved. Keep in mind when you are making a no-fault claim, you cannot recover any kind of pain and suffering. You would have to sue the negligent party in order to do that.
Benefits of No-Fault Insurance
One of the prime benefits of no-fault insurance is the short amount of time it takes to process your claim. Regular insurance claims can take many weeks or even months to process. No-fault claims are much faster because of the basic, streamlined process. You will also benefit from not having to deal with any lawsuits coming from the claims process. There is no one there to dispute your claim since you are using your own insurance, so there is no one to halt the process while you look for additional proof.
No-Fault Insurance is Location Dependent
The only downfall of no-fault insurance is the fact that it is not available in every state. Also, each state has their own rules regarding no-fault policies, so you will have to do your research based on where you live to determine if this type of insurance is beneficial to you. Some states will let you choose whether or not you want to purchase a policy to add on to your existing insurance while others will require you to have it.
If you want to use no-fault insurance to get compensated for your damages after a car accident, be sure to speak with your insurance agent to make sure you know how much you will be entitled to. If you think the coverage will not pay out enough, you may need to consider a lawsuit. For more information, contact companies like McHugh Insurance.