What does "no-fault" auto insurance mean?

Question

I live in California which, I think, is a no-fault state. What ramifications does that have if I'm in an accident? Does it matter, in any way, whether the accident is my fault or the other driver's fault? Thanks you.

Answer 1

First of all... California is NOT a no-fault state. You are required to carry minimum liability coverage in California. However, faults ARE assigned. (I'd know... I live here!)

The idea of no-fault is you are covered no matter what, supposedly less money spent litigating and less paperwork.

Answer 2

I'm not sure as in Maine auto insurance is mandatory.

Here's a link to a page I found explaining no fault insurance:

http://www.autoinsuranceindepth.com/no-f...

And here is one more specifically about California auto insurance:

http://www.autoinsuranceindepth.com/auto...

Answer 3

Well, no fault means something different in each state.  Generally, it means that you have to collect under your own policy.  

California, by the way, is NOT a no-fault state.  It IS a "no pay no play" state, so if you're NOT at fault, and you have no insurance, you CANNOT get paid by, or sue, the at fault party.

So, if you cause an accident in CA, you (or your insurance) are responsible to pay all bodily injuries, medical payments, and property damage - unless you hit an uninsured car.

Answer 4

It means that the insurer will pay for your damages even if the accident was your fault

Answer 5

For car insurance the best way to get a low rate is do a policy comparison on car policies. Make certain that you pick similar policies with the same limits, car model, zip code, etc so that all things are a good comparison.



What I always recommend is an online comparison quote at http://www.lowratetoday.com since they have discount insurers and can give multiple quotes on car insurance polices.

Answer 6

idk

Answer 7

Your insurance company pays your damages regardless of who was at fault in the accident.   The other guys insurance pays his damages.  

Sounds great but if your insurance company feels the accident was your fault,  they can still jack up your rates as a result of the accident.   Also the other side can still sue you if they feel you were at fault.

Answer 8

The only thing "no fault" means is your medical bills (funeral expense & sometimes lost wages & essential services) are paid by your own policy no matter who is at fault in the accident.  The real name is PIP (Personal injury protection) state.  

So, someone is always at fault in an accident, whether you are in a PIP state or not.  Some accidents are 50/50, in which case each company pays 50% of the total damages & both parties would be considered at fault.

If you have PIP coverage on your policy, you are in a PIP state, if you only have medical payments on your policy, you are not.  If you need clarification, call your agent.