Having a no-fault coverage is just a part of the whole package of automobile insurance coverage. It’s not a replacement for any other type of car insurance but an additional instead. On top of this, drivers also have the need for liability insurance, especially within jurisdictions that still operate under the “at fault system.”
How it works
Liability insurance covers and pays for expenses incurred by the other driver and its passengers, if any, in case you are found to be the one responsible for the collision. This type of plan does not cover any of your own injuries. In states that operate under the no-fault system, the liability insurance takes place when the other party’s PIP coverage has been exhausted.
Liability insurance coverage has two main coverage types. They are:
- Bodily or physical injuries – primarily answers for medical costs
- Property damage – pays for repair or replacement of the vehicle
Every policy has its limits that dictate how much your insurance provider is going to pay against a claim when you are the one at fault. This maximum amount is typically predetermined and indicated on the policy document.
Ensuring rightful and proper coverage
Most jurisdictions require liability car insurance coverage at a minimum. In some states, you may need a no-fault coverage as an additional policy. Knowing which coverage you need is for your own good interest.
To determine the proper and correct form of coverage you have to secure, speak with your car insurance agent. They will certainly provide you with the best option to not just save money but also be compliant with the law. They are knowledgeable about minimums and can answer whatever question you may have regarding claims and coverage.
There’s no saying when an automobile accident will occur. Even the most careful drivers find themselves being at fault. Proper coverage ensures that liability and burden brought by a collision are lessened when you know what you need.