No-fault auto insurance is used by a number of states to offer a different type of coverage after a car accident. With this type of insurance, no one is blamed or held responsible for the accident. Instead, each person’s own Minneapolis auto insurance covers the medical bills and damage to his/her vehicle. Although this form of insurance policy can be advantageous in some cases, it also leads to a number of problems.
One of the drawbacks of no-fault auto insurance is that it doesn't always offer fair premiums to drivers. Since the insurer has to compensate for the wreck of the insured driver, regardless of who is at fault, it has to increase the auto insurance premiums to cover the losses. In some instances, good drivers don’t necessarily get a great discount on their auto insurance premiums. This makes the policy more expensive for the careful or responsible driver.
Lack of Benefits
Another potential problem with no-fault auto insurance system is that it doesn't usually provide the benefits you need. This kind of insurance policy doesn't provide any benefit for suffering and pain. In some instances, the limitations that insurance providers have set on other items can be rather less, as well. Most states set a maximum amount of financial support that you can get for medical benefits. For instance, you want to file a complaint against the person who is held responsible for the accident. In other instances, you might simply want to turn in a claim on your medical insurance and pay the amount out-of-pocket.
As the medical limitations for this kind of insurance policy are relatively low, some drivers want to take the person responsible for the accident to court. They have to sue the driver at fault in order to get the money needed to cover all medical expenses or damages. Although this move can sometimes work, it entails additional legal expenses to the equation. Aside from the additional cost, it also takes a long period of time to go through the court system.
In some cases, there are individuals who may not be able to qualify for no-fault car insurance. If you have involved in several car accidents in the past that were identified as your fault, your auto insurance premiums may be very high that you can’t afford them. For that reason, you can either stop driving your vehicle or take the risk of driving without auto insurance. You can also transfer to another state where no-fault auto insurance is optional.
If you want to know more information about no-fault auto insurance, give Lancette Agency a call at 651-264-1230. We can help you understand how your policy works and make it affordable for you.