In most states, traditional tort liability systems are observed. This means that in a car accident involving two parties, the amount that car insurance providers pay will depend on each driver’s level of fault. If you’re not the driver-at-fault, the other driver’s insurance company will pay for the damages your vehicle incurred as well as for personal injury expenses.
What No Fault Car Insurance Basically Means And How It Works
The basic goal of the Florida No Fault Car Insurance Law is to lower the cost of premiums for drivers who get into accidents. Normally, car insurance providers will have to worry about two things when a driver gets into a car accident:
- The costs of litigation to determine who the driver-at-fault is
- Providing quick payments for injuries that a driver sustains in an accident
With No Fault Car Insurance Laws in place, the victim’s insurance provider would only pay for his claim. In most cases, there will be no changes in the victim’s risk level. On the other hand, the driver-at-fault will be paid his claim but will be charged a higher premium as a consequence. Why? Because his car insurance provider will consider him a high-risk driver for causing the accident.
Benefits Of No Fault Car Insurance
The Florida No Fault Insurance Law makes it possible for drivers to receive payments for injuries faster. In accident-prone areas of the country, many drivers cannot afford to pay for liability damages that they cause. This law ensures that injured victims of road accidents are well compensated for.
Critics of this law argue that negligent and reckless drivers can go un-prosecuted, with only raised premiums as punishment.
When you get in an accident, generally, your risk level increases regardless of who’s at fault. With the Florida No Fault Car Insurance Law or similar laws implemented in other advocating states, the driver-at-fault is the only one who gets an increase in risk and subsequently an increase in his or her premium payments (this depends on the policies of his insurance provider though).
Florida No Fault Car Insurance Costs
On average, the cost of insurance premiums is very expensive in states where the Florida No Fault Car Insurance law is observed. This no fault insurance costs average around $1665 in 2010 against the national average of $1553. Many people believe that these rates are regulated by the government and therefore, choose not to shop around for better Florida No Fault Car Insurance quotes. This shouldn’t be the case though, since many car insurance providers do give cheaper and more manageable rates; you just have to know where to look.
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