What is “No fault” Insurance?
In 1975, the Minnesota Legislature passed a “No-Fault Statute” regulating insurance you must have to operate a motor vehicle. It allows those who are involved in an automobile accident, regardless of who is at fault, to recover costs for medical bills, lost wages, and other economic losses. No-fault insurance will pay for medical expenses including medical, surgical, hospital, x-ray, chiropractic, rehabilitation services, prescription and ambulance, and provide mileage to and from treatment. The No-Fault Act also pays for wage loss including 85% of the injured person’s gross income to a maximum of $250 per week.
There is a lot of confusion surrounding Ontario’s No-Fault Insurance Program. It does not mean that those drivers who cause accidents are unaccountable, nor does it mean that all those involved in accidents are automatically assessed as equally at fault. The No-Fault Insurance Program simply means that you deal with your own insurance company for any claim you make. If the other party is determined to be at fault in the accident (according to pre-established rules), your insurance company will then re-coup the claim from the other party’s insurance company. This process is designed to ensure that anyone involved in an accident will be covered, even if the other party isn’t insured. It sounds like a good system, right? Be forewarned, however, that those “Rules” to determine fault can be quite confusing and counter-intuitive. And, if you are found to be even 5% at fault, you will be liable for the deductible and will face increases to your insurance premiums that will typically last for
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