In the event of a car accident, the at-fault driver’s car liability insurance provider would be the injured driver’s first source of compensation for all the damages that would resulting from the injury – this is if he/she lives in a tort state. In he/she lives in a no-fault states, however, a then his/her own insurance provider will pays for his/her medical treatment and lost wages no matter whose fault the accident is.
Carrying auto liability insurance or a state-approved bond, which will show a driver’s financial capability in compensating anyone who he/she may injure in an accident, is a requirement in all U.S. states in the US. This requirement is meant to make sure that people who are injured by reckless, negligent and irresponsible drivers will receive compensation.
Car liability insurance provides those who get involved in road accidents with the much needed financial safety net; this is why all US states, with the exception of New Hampshire, declare it mandatory for all drivers.
Under a tort-liability policy, physical injuries and damage to property (like vehicle, fence or house) are covered by the at-fault driver’s bodily injury liability policy and property damage liability policy, respectively. A no-fault policy, however, while covering a policy holder’s own medical treatment and lost wages, does not pay for damage to property. For this coverage, the policy holder will need to purchase a separate property damage liability insurance, which will cover any property that he/she may damage in an accident.
There are currently 9 states which require the no-fault system: Utah, North Dakota, New York, Massachusetts, Michigan, Minnesota, Kansas, Hawaii and Florida. The states of Kentucky, New Jersey and Pennsylvania are known as the “choice states” as these allow their drivers to choose between the tort and no-fault car liability insurance policies; all other states require the tort-liability policy.
Despite the car liability insurance being a mandate, the Insurance Research Council says that 1 in every 8 drivers in the US is uninsured. Thus, for a driver’s assured protection (if ever he/she figures in an accident wherein the driver at fault is either uninsured or underinsured) as many as 20 states and D.C, require drivers to also carry the Uninsured Motorist (UM) / Underinsured Motorist (UIM) coverage. These 20 states are Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, Wisconsin and Illinois.
Each state determines the minimum amount of UM and UIM coverage that drivers should carry. In states where UM and UIM coverage are not required, drivers are free to purchase these from their insurance providers.
Uninsured motorist coverage refers to the (total) absence of coverage on a vehicle; it is designed to cover all economic losses and damages due to accidents involving an uninsured driver, a stolen vehicle and, in some states, an unidentified hit & run. Underinsured motorist coverage, on the other hand, is intended to cover the amount in excess of the policy limit of the underinsured motorist.
In no-fault states, colliding with a driver, who is uninsured or underinsured, may not really present a big problem since claims are filed by each driver with their own insurance provider. Uninsured/Underinsured motorist coverage, however, will provide the innocent victim the extra financial protection which he/she may still require to fully recover from the accident.
According to Toronto car accident lawyers, “Cars and vehicles are a valuable asset for independent individuals. They enable people to travel, earn wages, engage in social activities, and have the freedom of going wherever they please. However, car accidents happen far too frequently, resulting in expensive car repairs, lost wages, and even death or serious injury. When a car accident is the fault of one specific party, it is greatly unfair to expect the innocent party to waste their time and resources dealing with the situation, especially in the event of a wrongful death.”
However, dealing with car insurance providers can be extra challenging as many insurance firms find ways to deny or delay insurance claims. Making a claim is a legal process; having an experienced car accident lawyer to deal legally with