No Fault Insurance Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of No Fault Insurance, written in plain English, along with examples of how it is used.
What is No Fault Insurance?
n.It is a kind of automobile insurance where an insured when meets with an accident can claim for damages to person or property by proving that the accident actually occurred.In this case the insured need not prove that he was not responsible for the accident or some other party was responsible for the accident.It has an advantage of providing quick payment of damages and helps in avoiding legal proceedings and premium costs.
History and Meaning of No Fault Insurance
No Fault Insurance is a type of automobile insurance in which an insured is entitled to claim for damages caused by an accident without having to prove fault. This type of insurance was introduced in the United States in the 1970s to help reduce the number of legal proceedings and premium costs associated with accidents, and to provide quick payment of damages to the parties involved in an accident.
Examples of No Fault Insurance
- In New York, drivers are required to carry No Fault Insurance coverage of at least $50,000 in case of injury resulting from an automobile accident.
- After a car accident, an insured can submit a claim to their No Fault insurance company for medical expenses and lost income, even if they were responsible for the accident.
- Under No Fault Insurance laws, injured parties are limited in their ability to sue for damages in court, which can reduce the time and expense of legal proceedings.
- Liability insurance - insurance coverage that pays for damages or injuries caused by the policyholders' negligence or mistakes.
- Personal injury protection (PIP) - a type of insurance coverage that provides medical and other related expenses to the driver and passengers involved in an accident, regardless of who was at fault.
- Uninsured motorist coverage - insurance that protects drivers in case of an accident caused by an uninsured motorist.