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An Example Of No Fault Insurance
by Ina Segurian
http://www.gapinsurances.com
There are some states which use a non fault insurance
system. Here is an example of how a no fault insurance
system,which is the law of the land in several states,
(DC, FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, UT ),
could affect you.
The non fault states are: DC, FL, HI, KS, KY, MA, MI,
MN, NJ, NY, ND, PA, and UT. In these states drivers
are required to have coverage for themselves and also
coverage which places limits in their ability to sue
other drivers. Your company pays for your damages even
if the other driver was at fault. The other driver is
covered by theri own auto insurance policy. The idea
is that since everyone is required to carry insurance,
there will be no ininsured drivers. Well, at least the
idea makes sense.
These states opted for the no fault insurance system
because it guarantees every driver immediate medical
treatment in the event of an accident. Further, it's
intended to reduce the legal and administrative fees
associated with insurance claims. Again, in theory,
this should equate to lower premiums. Unfortunately,
often times the liability issues that still remain
will actually drive premium costs up.
Since, even in theory, no state is purely non fault,
drivers can still be held financially responsible for
injuries caused by them. The victim may still have the
right to sue if the injuries meet certain standards of
severity.
What follows is an example of a no fault case. In this
case, a person lived in a 4-plex apartment building
with a 4-stall garage and a 4-stall uncovered driveway.
Often, neighbors used the wide driveway to turn around
before heading out into the street.
On one occassion, a tenant was going on an errand and
began the usual process of pulling into the driveway to
turn around. She was surprised when she felt a bump.
When she got out to investigate, she found that she had
run over a neighbor who was still underneath her car.
Understandably upset, she ran into her apartment to
call EMS.
The driver was too scared to go outside at that point. As
far as she knew, the half body, belonging to one of her
neighbors, was still under the car and the driver was
certain the injuries were serious. Her left rear wheel had
crossed her body from her thigh on one side on the diagonal
to above her pelvic region. The driver later learned that
some strong man from across the street came over and picked
up the car so she could get out from underneath.
Fortunately, however, the victim was not injured and
insisted to the police and ambulance that she did not
want to go to the hospital. They insisted, however and
she agreed to go. Fortunately there were no broken
bones or internal injuries. Apparantly she had been
sunbathing in the driveway and was out of sight of the
driver.
The driver felt responsible and terrible and wanted to
help her neighbor by making it up to her. So she
her insurance company to report what happened. Her
insurance company, while toalking to the lady, learned
that the victim had her own insurance and car. Since
they were in a no fault state, the driver was told that
the victims own insurance would have to cover any
claims, regardless of who cause the accident.
Interesting theory, no?
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