"No fault state....."

[DizBelle]

What the heck does it mean to be in a "no fault state"?

 

[CowboyCO]

It means that law enforcement will not assign fault in an auto accident. The insurance companies have to sort it out...

 

[momrek06]

It means that law enforcement will not assign fault in an auto accident. The insurance companies have to sort it out...

We lived in MA, our auto insurance was much higher in MA than CA as CA is "fault"!!!

There actually are times in "no fault" states when it is someone else's fault...DS was rear-ended while he was stopped at a red light. A man on a cell phone was not paying attention and plowed right into DS. This man's insurance paid for everything...car rental until car was fixed and all the repairs to DS' car. DH was hit by a man running a stop sign. DH was hurt. This man's insurance paid for all medical bills, DH's rental car until it was fixed and all repairs to DH's car.

 

[DebbieB]

I work in insurance. In a no fault state, each person in an accident pays for their own medical bills (their insurance pays), regardless of whose fault it was. It has nothing to do with damage to the vehicles themselves, the vehicle owner at fault pays for that.

 

[Geoff_M]

I work in insurance. In a no fault state, each person in an accident pays for their own medical bills (their insurance pays), regardless of whose fault it was. It has nothing to do with damage to the vehicles themselves, the vehicle owner at fault pays for that.

If that's the case, then the definition varies by state. In Michigan, "no fault" means, that each person's insurance pays for individual car damage as well as medical bills. The police will still assign fault. With most insurance companies here, if you are not found "at fault" by the police they will not make you pay the deductible.

 

[Diva of Dragons]

CA also has "no fault" divorce, hence the plethora of "irreconcilable differences" celebrity break-ups.

 

[DizBelle]

I work in insurance. In a no fault state, each person in an accident pays for their own medical bills (their insurance pays), regardless of whose fault it was. It has nothing to do with damage to the vehicles themselves, the vehicle owner at fault pays for that.

Will your insurance company try to recover those medical costs from the other party/other party's insurance company?

 

[DizBelle]

If that's the case, then the definition varies by state. In Michigan, "no fault" means, that each person's insurance pays for individual car damage as well as medical bills. The police will still assign fault. With most insurance companies here, if you are not found "at fault" by the police they will not make you pay the deductible.

So, you don't have to have liability coverage on your insurance as you'll never have to pay for someone else's damage/injuries? Does that seem right to you? Isn't this giving license to drive wrecklessly since you'll never have to be responsible for damage/injury you cause to someone else?

 

[INDISMOM]

So, you don't have to have liability coverage on your insurance as you'll never have to pay for someone else's damage/injuries? Does that seem right to you? Isn't this giving license to drive wrecklessly since you'll never have to be responsible for damage/injury you cause to someone else?

I would think they would still have liability unless all of their driving is done in Michigan. In Indiana it is against the law to drive without at least liability insurance.

 

[mnasmom3]

Michigan auto insurance minimum coverage requirements:

Bodily injury and property damage liability and personal injury protection required
Liability limits: 20/40/10
No fault insurance IS required.


I don't think being a "no fault" state encourages wreckless driving. If I'm at fault in an accident, I have to pay my deductible.

 

[Violet Crayon]

Will your insurance company try to recover those medical costs from the other party/other party's insurance company?

What I understood in Michigan is that the insurance company will "sue" the other one to cover the costs, and then your policy (if you were at fault) will go up to cover those costs.

Our experience in Michigan with "no fault"
My boyfriend was changing lanes when a woman sped out from a side street, and my boyfriend was determined at fault for entering another lane. She was screaming at us that she would sue us for everything we had (there was a tiny dent on both of the cars). The police came and informed the woman, who turned out to be from Ohio, that she was in a "no fault" state and would have to go through her insurance company. We were given a ticket (which my boyfriend wrote a letter and brought to the judge who dismissed the ticket). The companies had a court date to determine what happened and it was optional to show up. The woman apparently showed up in an upper-body and neck brace arguing she could hardly walk, and they didn't buy it, and she (her insurance) was only awarded the costs to fix the tiny dent. Because she was so ridiculous the insurance company called my boyfriend to tell him the decision and that it was so minimal his policy would not change.

I like it better because I do not want to deal with being personally sued for an accident.

 

[DizBelle]

If that's the case, then the definition varies by state. In Michigan, "no fault" means, that each person's insurance pays for individual car damage as well as medical bills. The police will still assign fault. With most insurance companies here, if you are not found "at fault" by the police they will not make you pay the deductible.

Michigan auto insurance minimum coverage requirements:

Bodily injury and property damage liability and personal injury protection required
Liability limits: 20/40/10
No fault insurance IS required.


I don't think being a "no fault" state encourages wreckless driving. If I'm at fault in an accident, I have to pay my deductible.

I can't reconcile these two statements...

Each person's insurance pays for individual damage as well as medical bills but you still have to have liability insurance - which if the first statement is true will never be used. How is that possible?

 

[Geoff_M]

I can't reconcile these two statements...

Each person's insurance pays for individual damage as well as medical bills but you still have to have liability insurance - which if the first statement is true will never be used. How is that possible?

"No fault" only concerns the coverage of actual monetary expenses related directly to the accident (car and medical) it doesn't cover non-monetary damages like "pain and suffering" and such in the case of death or serious injury. You can still be sued for such things. The liability coverage may also be needed if you get in an accident out-of-state.

Here's an Info Sheet from the state: Link

I will say that the collision part of the "no fault" insurance is optional. If your car is nearing the end of its life and has little "book value", it's common to drop that portion of the coverage as it won't pay out much if you wreck the car.

 

[DizBelle]

"No fault" only concerns the coverage of actual monetary expenses related directly to the accident (car and medical) it doesn't cover non-monetary damages like "pain and suffering" and such. You can still be sued for such things.

I don't think that liability insurance is supposed to cover "pain and suffering" so I still don't get why you have to have it if it will never be used.

Or is the purpose of liability coverage to cover "pain and suffering"?

 

[DizBelle]

any more comments?

 

[Geoff_M]

I don't think that liability insurance is supposed to cover "pain and suffering" so I still don't get why you have to have it if it will never be used.

Or is the purpose of liability coverage to cover "pain and suffering"?

"Liability" is "liability" it doesn't matter if your talking about real damages such as replacing a fence that your car destroys in an accident or for non-monetary injuries ("pain and suffering", "lost wages", etc.) Here's the relevant section from Michigan's FAQ:

Residual Liability Insurance - Bodily Injury and Property Damage
The no-fault law protects insured persons from being sued as a result of an auto accident except in certain special situations. In general, you can only be sued:
(a) if you cause an accident in Michigan in which someone is killed, seriously injured, or permanently disfigured;
(b) if you are involved in an accident in Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan;
(c) if you are involved in an accident in another state; or
(d) for up to $500 if you are 50% or more at fault in an accident which causes damages to another person’s car which are not covered by insurance.

 

[DizBelle]

"Liability" is "liability" it doesn't matter if your talking about real damages such as replacing a fence that your car destroys in an accident or for non-monetary injuries ("can and suffering", "lost wages", etc.) Here's the relevant section from Michigan's FAQ:

Does this mean that the PP was wrong when they said that "no fault" meant that your insurance covers you and their insurance covers them and your insurance will never cover them even if the accident was your "fault"?

No fault prevents you from being sued except in certain situations? But doesn't have anything to do with what damages your insurance has to cover?

Why is it so hard to get a clear meaning of "no fault"?

 

[Shelton123]

I always thought it meant that the state you live in isn't on a fault line

 

[Geoff_M]

Does this mean that the PP was wrong when they said that "no fault" meant that your insurance covers you and their insurance covers them and your insurance will never cover them even if the accident was your "fault"?

Generally speaking, the PP is correct. This assumes that the accident doesn't involve any of the "a" through "d" exceptions I posted.

Generally speaking, if two Michiganders run into one another each drivers' insurance pays for their own car repair/replacement (if they have collision coverage) as well as their own medical bills. The only "suing" generally allowed is for the not-at-fault driver's insurance company go after the "at fault" driver's company for the amount of the deductible.

 

[tink_n_pooh]

it means you will pay more for car insurance