Despite the benefits of having a no fault auto insurance policy, it does have several limitations on the amount of money you can receive from your insurance company. By understanding these limitations, you will know what actions you need to take in order to get more money after you car accident.
Here are some of the disadvantages of having a no fault insurance policy:
1. Your Property Damage is Not Covered
If you have a no fault auto insurance policy, then you will not get any money for your vehicle and property damage. This is because your no fault auto insurance only pays for your medical bills and lost wages.
To get money for your car repair and other property damages, you will have to follow the same procedure as if you lived in a fault state. This means you will have to file a car accident claim against the other driver’s liability insurance or collect under your own collision coverage.
When you start a car accident claim, it is important that you avoid making silly mistakes that can end up costing you thousands of dollars.
Read Starting Your Auto Accident Settlement Claims to avoid making common mistakes.
Getting money for your car repair can be confusing and stressful. Most people don’t know how the car accident claims process works or how they could be ripped off by dealing with a tough car insurance adjuster.
Read Car Accident Claims : How to Get Money for Car Repairs to get an overview of the settlement process.
Filing an accident claim under your collision coverage has its advantages and disadvantages as well. The good news is that you won’t have to deal with another driver’s insurance company. The bad news is that you will have to pay a high deductible. I discuss the pros and cons of choosing collision coverage in
Auto Accident Claim :Should You Use Auto Collision Insurance to Pay For Car Repair Costs ?
2. Your Medical Bills are too High
Your no fault auto insurance policy only pays up to your policy limits. In order to make up for what your benefits do not cover, your insurance company allows you to file a car accident claim against the driver who was at fault for the accident.
However, before you can file an auto accident claim, you must meet your no fault state’s minimum cash threshold. The cash threshold is the minimum amount your medical bills must be before you can file a car accident claim against another driver.
Each state has a different cash threshold. Before you start thinking about filing a car accident claim, see if your medical expenses meet your state’s requirement.
Read No Fault Car Insurance : States with Cash Threshold
When your medical bills are more than your policy limits, you will have to file a personal injury claim against another driver’s insurance company. The procedure to file your personal injury claim would follow the same procedure as if you lived in a fault state.
Getting money from your personal injury settlements is difficult and can be extremely stressful. Most people are unsure of how much money they can actually get from their personal injury claim.
Use the Personal Injury Settlements Calculator to determine how much your settlement is worth.
3. Does Not Cover Your Pain and Suffering
Another limitation of a no fault auto insurance policy is that it does not compensate you for any pain and suffering as a result of your car accident.
To make up for this limitation, you can file a personal injury claim if you meet your state’s “injury threshold”. An injury threshold is a lot more subjective than the cash threshold because each state has a different definition to what it considers “severe”.
In most auto accident settlement claims, the biggest amount of your final settlement comes from your pain and suffering. So it is important you understand when your injuries meet your no fault state’s injury threshold requirements.
Read No Fault States with Injury Thresholds
Bottom Line
Having no fault auto insurance has its benefits and disadvantages. The benefit of having a no fault auto insurance is that you are guaranteed to receive money, regardless of whether or not you caused an accident. The disadvantage is those benefits may not be enough to cover your medical bills or compensate for your physical and emotional stress.
If you live in a no fault state and you want more money than what your insurance policy offers, you should start considering if you can start a car accident claim or personal injury settlement. `
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