"No fault state....."

[DizBelle]

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.

So, the most that any insurance company (whose driver "caused" the accident) will be responsible for to another party (the "victim" if you will) is the amount of the victim's deductible? Still doesn't make sense to me.

So, The driver of a 1979 hunk of junk hits and totals a 2009 Mercedes. The most that the insurance company of the hunk of junk driver is responsible for to the insurance company of the Mercedes driver is the amount of the Mercedes driver's deductible (probably around $500).

How can the driver of the hunk of junk (or his insurance company) NOT have to pay for the wrecked Mercedes? That really doesn't seem fair.

 

[DVC-Don]

No Fault here in New York refers to medical bills only. Every one in your car is covered for medical bills (and loss of income) by your insurance company reguardless of who is at fault for causing the collision. Minimum coverage is $50,000 per person (more can be purchased). Under certain circumstances the person at fault can be sued for damages. This would be any fractured bone, extended loss of work, significant scaring, exceeding the coverage limit or death. That's where the liability coverage kicks in.

I find many police officers tell people "don't worry, it's no fault" without understanding what "No Fault" insurance means. (I was a police officer before my current career.) It's understandible, they are trained in motor vehicle/criminal law, not insurance law and/or regulation.

 

[MELISAZACK]

In PA - no fault means you are responsible for your own medical bills if you are injured in a MVA - regardless of fault - In PA there is no subrogation for the cost - your premiums do not increase from that either since it is state mandated that we must pay that way.. ONce you run out of medical under your auto you go to private health for your coverage - if you don't have it then you pay for the rest of your treatment out of pocket - you still can't go after the other person for the bills... You may however possibly put a Bodily Injury suit against them depending on your other coverage - when the suit is settled that is where you recover the out of pocket expense you put out for your medical treatment.

 

[mnasmom3]

So, the most that any insurance company (whose driver "caused" the accident) will be responsible for to another party (the "victim" if you will) is the amount of the victim's deductible? Still doesn't make sense to me.

So, The driver of a 1979 hunk of junk hits and totals a 2009 Mercedes. The most that the insurance company of the hunk of junk driver is responsible for to the insurance company of the Mercedes driver is the amount of the Mercedes driver's deductible (probably around $500).

How can the driver of the hunk of junk (or his insurance company) NOT have to pay for the wrecked Mercedes? That really doesn't seem fair.

He doesn't have to pay because we are in a no fault state and everyone is responsible for insuring their own car. (assuming he can't be sued under the conditions previously posted)

The value of the car doesn't matter. The mercedes owner uses his own insurance to get his car repaired as does the hunk 'o junk owner. The deductible doesn't have anything to do with the amount that may be recovered in a lawsuit. The deductible is the amount the driver pays to use their insurace. In this case, the mercedes likely has broad form full coverage and won't pay a deductible since he wasn't at fault. He'll contact his insurance company and file a claim. The junk driver would go through their own insurance company for repairs and pay a deductible since he was at fault. A driver being sued is covered for amounts they can choose. There is a min amount which I posted previously, but you can buy more. The amount you buy would be the max amount the insurance would pay if they needed too on their policy holders behalf. Example: the coverage I bought would pay up too $100,000 to someone suing me for property damage.

 

[DebbieB]

See these links. It all depends on what state you are in.

http://insurance.lawyers.com/No-Fault-Auto-Insurance.html

http://www.insurance.com/faqs/autofaqdetail.aspx/index/17

http://www.autoinsuranceindepth.com/state-minimums.html

 

[Jennabeth]

So, the most that any insurance company (whose driver "caused" the accident) will be responsible for to another party (the "victim" if you will) is the amount of the victim's deductible? Still doesn't make sense to me.

So, The driver of a 1979 hunk of junk hits and totals a 2009 Mercedes. The most that the insurance company of the hunk of junk driver is responsible for to the insurance company of the Mercedes driver is the amount of the Mercedes driver's deductible (probably around $500).

How can the driver of the hunk of junk (or his insurance company) NOT have to pay for the wrecked Mercedes? That really doesn't seem fair.

So say the 2009 Mercedes is hit by a hunk of junk that has no insurance, then who pays? I live in Michigan and while sometimes I hate "no fault" I do like knowing that if I'm in an accident, my car will be covered. I also like knowing that if I have no money and have to buy a hunk of junk, I only have to pay to insure my junk (meaning very little $ for insurance), not everyone else's new car. I does give you control over how much you have to pay for car insurance.

 

[DMickey28]

Each state is very different in their definition of No-Fault. Some apply to medical only, some apply to everything.

As for Michigan, it doesn't matter who's fault the an Property Damage accident is you go to your own insurance company. End of story. I am not 100% sure on Bodily Injury and it's been too long since my fuzzy mommy brain worked in claims so I am not going to even try to say anything about that.