No-fault auto insurance is mostly adopted in places where the use of courts is relatively expensive and time consuming. This aspect of car insurance requires that the victims or the injured parties involved in a car accidents should seek compensation from their own car insurance, irrespective of who is to be blamed for the accident. With No-fault auto insurance, a lawsuit is not usually permitted unless the situation is really uncontrollable. However, if serious injuries cases occurred such as death, permanent loss of a body part, disfigurement, and any other form of serious concern; then lawsuits will be considered in those cases.
Categories of No-fault Auto insurance plans
There are many types of No-fault car insurance plans as practice in several countries, but they all should fall under these categories. They are:
The Modified no-fault plan
In this type of no-fault auto insurance plan, the injured person is only allowed to sue if the amount of damages exceeds that of the verbal threshold or the monetary threshold as the state’s law permits. However, in this plan, any amount that is less than what is stated must be collected from the victim’s own insurers respectively.
The choice no-fault plan
This type of no-fault insurance plan permits the injured person to select between the no-fault coverage in order to pay lower premiums or to pay higher premiums if the party wants to have the right to sue. However, this is seen as an outdated type of no-fault plan because most of the states that practice this have now modified the system, with restrictions on the right to sue.
The pure no-fault plan
In this type of no-fault plan, any lawsuit attributed to an accident is totally not permitted, and the injured parties would be required to collect payment from their various insurers. It is important to know that, there hardly seen a state practicing a pure no-fault auto insurance plan and this has result to so many contentions as to whether or not the system is effective as part of the car insurance plans.
The add-on plan no-fault plan
This is considered to be a two-faced type of no-fault auto insurance plan, because it is always flexible and it allows the injured parties to chose whether to sue or to collect insurance from their respective insurance companies. In this type of plan, the injured party will be allowed to sue for damages involve for pain and suffering, and other unserious cases.
In the end, I will like to draw people’s attention that the no-fault car insurance plan has been widely supported by many because they believed that trying to determine the fault in a lawsuits as a result of an accident will take some times to ascertain the real cause; and this will delay payment to the injured parties. But, the no-fault car insurance plan will allow payment to be done by the injured party’s insurer and it is considered as the fastest means of means of saving the life of the injured victim.