The Mechanics of No Fault Insurance in Los Angeles

Share:    

The Mechanics of No Fault Insurance in Los Angeles

Broadly, no-fault insurance, also called as personal injury package (PIP), refers to any type of insurance contract where the insured is compensated for losses by his insurance company, regardless of whose fault in an accident.

No fault insurance aims to provide basic medical coverage for people injured in car accidents especially during times when treatment is badly needed or when doctors need to recover fees. In a way, this also helps to eliminate lawsuits in small accidents.

However, the amounts paid by no fault policies are often not enough to cover losses fully, notwithstanding that no fault insurance does not compensate pain and suffering as well.

In many states where no fault insurance is recognized and used, the coverage often include compensation for medical bills, lost wages and replacement services.

Replacement services are the cost to pay someone else to do something you would normally do yourself if you were not hurt such as baby-sitting for example.

Contrary to some beliefs, a no-fault insurance is not a substitute for your health insurance. However, if you are injured in a car accident, you can use your health insurance and the no-fault insurance to cover your expenses and recover the losses from the liable party.

In addition, a no-fault insurance cannot be used to compensate for physical damages in a car accident. This means it has no effect on claims for damages, especially if you live in a no-fault state. Hence, if you had an accident and do not have collision coverage, you will definitely pay for your own damages and your premiums are likely to increase because of this.

And most of all, a no fault insurance does not compensate for the non-economic damages in a vehicle accident. This means that pain and suffering, loss of consortium and other injury related issue are not covered by a no-fault insurance policy. In addition to this, it cannot answer for the damages of the uninsured nor the under-insured in a motor vehicle accident.

In sum, a no-fault insurance policy is essentially limited plan that deals only with a specific issue in an accident. And depending on which state you live, a no-fault coverage has a limited application.

In Los Angeles, for instance, where a no-fault coverage is recognized and used, it also makes sense to get a more comprehensive and reliable motor accident policy. In case of accidents, a comprehensive insurance policy can help recover both economic and non-economic damages for either the insured or the victim.

However, no-fault insurance has it advantage. When one gets involved in an accident, for example, a no-fault insurance can help him collect from his insurance no matter who was at fault.

Your insurance coverage may ultimately affect your claim in an accident. Depending on how fault is determined by law in your state, having a no-fault insurance may influence the outcome of one's claim in a car accident.

Recovery of losses in motor vehicle accidents will significantly depend on how you well you handle the situation. To improve your chances of obtaining full compensation for your claim, you have to discuss matters and clear up the issues with your attorney.

POST COMMENT

Burial Insurance - Everything You Need to Know A Guide To Renters Insurance In Los Angeles Rates For Motorcycle Insurance Policies Securing Flood Insurance In New Jersey Understanding How Your Florida Insurance Policy Is Rated Florida Average Insurance Costs The correct way Senior citizens Can find the very best Insurance Policy Information About Insurance in Califon, NJ Find The Best Trip Cancellation Insurance For You - 5 Tips The Basics of Motorcycle Insurance All about Bodily Injury on Insurance Rates Everything to Know about Insurance Premiums Apartment Building Insurance-NCAIG