It is mandatory that all vehicles on the road must have automobile insurance coverage in the United States. If an automobile accident should occur, an injured party can choose to recover damages sustained from that accident through his or her own insurance company, instead of going through the other driver’s insurance company.
This type of insurance is known as no-fault auto insurance. It is government-mandated auto insurance where an injured party who was involved in an automobile accident can choose to recover a specific amount of damages from their own insurance policy, regardless of who was at fault in the accident. The amount of damages that can be collected is based on their insurance policy’s liability limits. Recoverable damages can be it the form of lost wages, medical care or any other accident related expenses.
A condition of a no-fault insurance claim is that the injured party cannot sue the other driver for any emotional distress, pain and suffering, or any other additional damages. No-fault insurance was designed to alleviate the burden of long and costly court battles over which party was at fault in the accident and to what degree of fault.
As of December 2010, there are 12 states, along with Puerto Rico, that offer some form of no-fault auto insurance. The amount of coverage provided to an insured varies by each state.
1. Florida
2. Hawaii
3. Kansas
4. Kentucky
5. Massachusetts
6. Michigan
7. Minnesota
8. New Jersey
9. New York
10. North Dakota
11. Pennsylvania
12. Utah