Post Date March 20, 2012 –  Admittedly, the inequity in no-fault auto insurance claims lies in the settlement of smaller claims. Under the no-fault auto insurance policy system, surveys  have shown one-half the claimants with losses of $2500.00 or less are fully compensated, one-third get substantially more than their loss actual amount, while one one-sixth receive substantially less than the actual loss  sustained.  This is in contrast to nearly three-fourths of those with an at fault accident claim exceeding $25,000 failed to collect 25% of their true  financial loss.  A Basic Auto Insurance Protection Plan , like they have in New Jersey, would cut benefits sharply on a majority car insurance claims.  A number of other features are nothing but a political hot potato.

At present,  hospital and medical costs may be recovered under a tort claim regardless of the benefits outlined in their own car insurance policy. State and Federal Courts hold that failure to pay any part of the property damage is a reward to the driver whom caused the at fault accident.  Under a No-Fault Car Insurance Plan, collateral benefits are deducted on the theory that no one should profit on a hospital bill.  Both approaches are valid legal principles depending upon whether car insurance is third person liability or first person compensation coverage.

-Mike  

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602