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An Example Of No Fault Insurance
by Ina Segurian
http://www.gapinsurances.com

There are some states which use a non fault insurance
system. Here is an example of how a no fault insurance
system,which is the law of the land in several states,
(DC, FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, UT ),
could affect you.

The non fault states are: DC, FL, HI, KS, KY, MA, MI,
MN, NJ, NY, ND, PA, and UT. In these states drivers
are required to have coverage for themselves and also
coverage which places limits in their ability to sue
other drivers. Your company pays for your damages even
if the other driver was at fault. The other driver is
covered by theri own auto insurance policy. The idea
is that since everyone is required to carry insurance,
there will be no ininsured drivers. Well, at least the
idea makes sense.

These states opted for the no fault insurance system
because it guarantees every driver immediate medical
treatment in the event of an accident. Further, it's
intended to reduce the legal and administrative fees
associated with insurance claims. Again, in theory,
this should equate to lower premiums. Unfortunately,
often times the liability issues that still remain
will actually drive premium costs up.

However, because no state is pure no fault, drivers can
always be held financially responsible for the cost of
injuries they cause in certain circumstances - that~s
the loop hole. Some states allow injured parties to sue
if their injuries meet certain standard for severity,
while others allow it when total costs reach a certain
dollar level.

Below is a classic case of a no-fault situation. Neighbor
lived in a four-plex apartment building. It had a 4-stall
garage along with a 4-stall wide driveway. Because the
driveway was so wide it was second nature for the tenants
to pull out of their parking spots and turn around in the
driveway instead of backing into the street.

On one occassion, a tenant was going on an errand and
began the usual process of pulling into the driveway to
turn around. She was surprised when she felt a bump.
When she got out to investigate, she found that she had
run over a neighbor who was still underneath her car.
Understandably upset, she ran into her apartment to
call EMS.

While in her apartment, a neighbor from across the
street, having seen the accident, ran over and was able
to move the car enough to allow the victim to crawl out
from underneath. The driver was convinced that she had
caused her neighbor some serious injuries.

The victim stated that she was fine and did not want to
go to the hospital. However the police and paramedics
insisted and wound up transporting her to the hospital.
It turns out that the "victim" was sunbathing behind
her car, out of sight of the driver. Fortunately, she
suffered no broken bones and no internal injuries. She
did, however, have a tire track from her right thigh
to her stomach.

Feeling guilty, the driver accepted full resopnsability
and wanted to do whatever was necessary to make it up
to her neighbor. So, she called her insuance company
to explain the situation. The insurance company wanted
the following information: does the victim drive and
does she have her own car. The answer to both
questions was "yes". The driver was then told that due
to the no fault insurance issue, the victims own car
insurance company would have to cover the victims
expenses, even though the driver was clearly at fault.

Interesting theory, no?

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