States With No-Fault Car InsuranceSome states have a "no-fault" system where auto insurance companies pay the medical bills, rehabilitation costs, and lost wages of the policy holder regardless of who's at fault.
No-fault systems came into place due to the sometimes long and costly process of determining who is at fault after an accident.
The good part of a no-fault system is that you get personal injury payments without having to figure out who's at fault. The bad part is that you cannot sue the other driver for pain and suffering or other emotional distress (unless the injuries are severe or caused by severe negligence).
Currently, there are 12 states that have no fault insurance:
- New Jersey
- New York
- North Dakota
Living in a state with no-fault insurance doesn't mean you can drive without insurance. If you have an accident and carry no insurance, you can be held accountable for the damages.
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