What is no-fault automobile insurance?
About half the states have some form of no-fault law that requires drivers to carry insurance that will pay for their medical bills and lost wages — up to certain dollar amounts — regardless of who was at fault in an accident. The intent of no-fault laws is to eliminate injury liability claims and lawsuits in small accidents. The advantage of no-fault insurance is prompt payment of medical bills and lost wages without any arguments about who caused the accident. But most no-fault insurance — which is often referred to in policies as Personal Injury Protection (PIP) — provides extremely limited coverage: • No-fault pays benefits for medical bills and lost income only. It provides no compensation for pain, suffering, emotional distress, inconvenience or lost opportunities. • No-fault coverage does not pay for medical bills and lost income higher than the PIP limits of each person’s policy. PIP benefits often fail to reimburse fully for medical bills and lost income. • No-fault often
