Auto accidents could produce serious injuries and economic losses for the victims. In states where no-fault insurance is required, the requirements and guidelines for filing a lawsuit could be more restrictive. Companies such as Freeway Insurance can help guide you to the best coverage for you based upon your unique needs and requirements within your state. They can prevent some victims from filing a claim to collect compensation.
Before an auto accident victim starts a legal claim, they must review the current insurance laws and determine how the laws can affect their right to sue. Some states may give auto owners options, such as full or limited tort insurance, that could override some restrictions.
What Is No-Fault Insurance?
No-fault insurance is a form of personal injury coverage that provides coverage for medical needs after an auto accident. Instead of filing a claim through the at-fault driver’s insurance carrier, the victims file a claim through their owner insurer to get payments for the medical expenses required to treat their auto accident injuries. Victims that need help understanding no-fault insurance start by contacting an attorney right now.
Why Do Some States Follow No-Fault Insurance Laws?
Many states implement a no-fault insurance system to decrease the number of auto accident laws filed in their state. Under the circumstances, auto accident victims cannot file a personal injury lawsuit just because they were injured and the at-fault driver didn’t have auto insurance.
The states require drivers to purchase personal injury protection insurance in addition to auto liability insurance coverage. Vehicle owners must show proof of insurance coverage whenever they apply for a tag or renew their existing auto tag.
Under What Circumstances Can Victims Sue?
Since the no-fault auto accident system is restrictive, the victim’s injuries must meet specific guidelines. The injuries must cause significant disfigurement, bone fracture, loss of organ function, loss of bodily function, or a disability that will last longer than 90 days.
Before the claimant can start a legal claim, they must have medical records that show their injuries meet the required criteria. If a victim dies as a result of their injuries, their family can start a wrongful death lawsuit against the at-fault driver.
Are There Coverage Limitations With the PIP Insurance?
Yes, most personal injury coverage policies have coverage limitations, and the claimant may seek compensation if their coverage is maxed out by their medical expenses. It is recommended that auto owners review the limitations of their coverage and determine if they need supplemental policies. No-fault states may decrease the victim’s rights to sue the at-fault driver, and if they don’t have enough coverage, they still cannot get compensation through a legal claim.
What Happens If A Driver Doesn’t Have the Insurance?
If the driver doesn’t have PIP or auto insurance, they will face penalties for non-compliance with local insurance laws. They may also face administrative penalties that prevent them from getting their auto tag renewed. The authorities may also revoke their registration or impound their automobile. If they caused an accident and didn’t have coverage, the state can increase their penalties and fines.
Auto accidents may lead to profound injuries, but they may not be eligible for a lawsuit under restrictive no-fault laws. After an auto accident, victims must familiarize themselves with existing laws to determine if they can sue. In most no-fault states, auto accident victims must have life-altering injuries before they can sue. By consulting an attorney, victims can determine if they are able to collect compensation through a legal claim.