In most states, there is an auto insurance policy which insures drivers in the event of an traffic accident. Sounds familiar, doesn’t it?  But here’s the twist, it covers every party regardless of whose fault it is!  Yes, you’ve heard it right; it means that nobody would be at fault.

Some states, in order to reduce the number of lawsuits, have opted to make certain small  auto accidents faultless, especially when it’s just a small automobile incident. Their purpose in this is to reduce the loading on courthouses and even the legal system.

You may be wondering how the No Fault system may affect you; just like anything in life, it has a lot of advantages and a lot of disadvantages. One of the advantages is that you’ll be saving a lot on law suits. Since it is no longer to blame each other, there would be no point anymore in going to the courthouse. On the other side, there are also a lot of disadvantages: responsible drivers no longer have incentives for driving safe therefore roads become more dangerous; since there will be no lawsuits, there would be much more repeat offenders; drivers are given leeway for accidents, in other words bad drivers have nothing to be afraid of; and lastly, you could become a victim of intentional accidents for fraudulent purposes targeted on insurance companies.

Some states have compromised this No Fault system. For example, in New Jersey, auto insurance companies use number systems to identify the at fault driver. This number system would range from 0-100 percent. If a driver gets 100%, it means he is the only person who could be blamed for the accident. When a driver’s ‘fault percentage’ is higher than 0, he is one of the persons to be blamed for the accident and thus insurance companies will be noting this in his records. As a result of this, he may be surprised that his premium has inflated since the previous month.

Since each state has its own rules and guidelines regarding car insurance policies, it has become considerably more complicated for drivers to get the best insurance policy. Having said this, it would be best to consult the help of professionals. Of course you could drive to their offices, but why not do it online? It will save you a lot of time, not to mention fuel. InsureDirect.com has 20 years of experience finding the best insurance quotes from their 30 major insurance carriers. Why not use our expertise for free? Come on, give it a try. There’s nothing to lose!

– Mike