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The Elements of No Fault Auto Insurance

The Elements of No Fault Auto Insurance

The term ‘no fault auto insurance’ often confuses consumers a lot since most people assume that the term implies drivers are never held accountable for causing accidents. However, this notion is false and misleading as no fault auto insurance actually means that the insuring party will be held accountable for any accidents caused by a vehicle they have insured under this system regardless of where the fault lied.

The no fault system was designed with a view of eliminating lawsuits in case of small accidents, thus ensuring that the courthouses and the legal system by extension was not overloaded with such cases. And although cheap auto insurance companies ensure that motorists get back on the road as quickly as possible, it does not mean that a lawsuit cannot be filed, since individual states determine which kinds of accidents offer the option of initiating a lawsuit.

States that have implemented the no fault system use the same rules to assign blame in the event of an accident. Should the system find you to be the cause of the accident, then you can look forward to paying higher premiums.

In Louisiana, auto insurance firms have a system in which fault is determined and is based on a number system from zero to a hundred percent. Any driver who attains a ranking higher than zero is deemed to be at fault and this is noted in their insurance coverage records.

The no fault system is provided by specific states, and to get the best online car insurance firm offering the best rates, one needs to compare auto insurance quotes online. This will give you a wide range of choices from which to choose from. You can look for most vehicle insurance firms online and get cheap auto insurance quotes online from them.

A number of drivers who are against the system have argued that the no fault auto insurance system gives drivers leeway to cause accidents. They argue that bad drivers are rewarded for their driving since they are not given any incentives to drive safely on the roads, and that by avoiding lawsuits they are more likely to grow into repeat offenders.

On the other hand, supporters of the no fault system point out that the system protects drivers since they own liability insurance, and an increase in premium would be much better than paying for a lawsuit which can, of course, be very expensive.

It does not matter if you live in a state with a no fault system or not; most auto laws are complicated and the best way to get around them is to have a direct car insurance agent supporting you. This is especially true when trying to understand no fault auto insurance.

-Mike