No Fault Auto Insurance

No fault insurance in general is a term used
to describe an auto insurance system that
 requires drivers to carry insurance for
their own protection and places limitations
 on their ability to sue other drivers for damages.

In a pure no fault system, drivers would be completely covered by their own policy, and would be barred from suing another driver for damages.
 
If you have an accident, under pure no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault.
 
Other drivers involved would be covered by their auto insurance.

Since no state is pure no fault, drivers can be held financially responsible
for the cost of injuries they cause in certain circumstances.
 
States actually use parts of both the no fault system and the standard liability system
 (under which you're financially responsible for the cost of damages you cause).

Some no fault 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.

That's why liability insurance is still so important,
and why and every no fault state requires it.

Twelve (12) states and Puerto Rico currently have some sort
 of  no-fault auto insurance laws.

Five (5) states have verbal thresholds.

Seven (7) states — use a monetary threshold.

Three (3) states have a "choice" no-fault law.

 In New Jersey, Pennsylvania and Kentucky,
motorists may reject the lawsuit threshold and
 retain the right to sue for any auto-related injury.

Colorado’s system reverted back to the tort liability system in July 2003

Brief history of the No-Fault concept

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