Most of the personal injury claims arise from vehicle accidents and two-wheeler accidents which involves some insurance company.
The settlement of personal injury compensation claims happens at the level of the insurance companies and insurance settlers, with only a small percentage of cases going to the court. If you are involved in a car accident like a collision with another vehicle, it is normal that both drivers will have their car insurance, and the victim or plaintiff will file a compensation claim with the insurance company of the other driver who is at fault. There is a legal process of filing the claim by proving the fault of the erring driver. The insurance companies hire lawyers to settle the case at a minimal expense; you must also engage a DLY Back Injury Attorney to handle your case and get the right compensation efficiently.
No-fault insurance systems for personal injury claims
Although establishing the other driver’s fault is most critical for winning cases of compensation for personal injury, there are some exceptions too. Some no-fault states follow a different claim settlement method in which both parties involved in a car accident make a claim against their insurance policy regardless of which party was at fault and responsible for the accident. The states of Hawaii, Florida, Kansas, Massachusetts, Kentucky, Minnesota, Michigan, New York New Jersey, North Dakota, Utah, Pennsylvania, and Puerto Rico, have no-fault auto insurance laws.
The no-fault systems aim to keep small claims of car accidents from out of court and restrict the ability to sue by using the insurance route for allowing an injured person to recover costs.
Types of auto insurance systems
No-fault auto insurance – Having no-fault auto insurance entitles the holder to claim compensation for minor injuries from the insurance company directly, no matter whose fault it is. The compensation includes medical costs, lost income, and wages, and other out of pocket expenses arising from the accident. Although the insurance company in a no-fault state pays the driver’s benefits, restrictions apply for filing a lawsuit.
Choice no-fault – Some states do not make it mandatory to make use of no-fault insurance that allows people to choose between a regular car insurance policy and no-fault insurance policy.
Tort liability – This is the other name of the traditional car insurance policy. The driver responsible for causing the accident is liable to pay compensation to the victim. The settlement happens at the level of the insurance company failing in which the injured person can file a lawsuit.
Add-on – Some states allow add-ons that enable a driver to receive compensation from his or her own insurance company. The arrangement is like that of the no-fault insurance but with restrictions on lawsuits.
The modality of working of no-fault insurance
In no-fault insurance, the insurance company, the second party, compensates the policyholder or the first party after an accident without considering who was at fault. A driver in a no-fault state must carry a Personal Injury Protection (PIP) coverage that varies according to states.
Check your insurance policy and the state rules before filing a personal injury claim.