When Claiming Compensation after a Car Crash, the Biggest Problem is not Your Insurance Policy, it is rather Your Insurance Provider
All states in the U.S. require drivers to carry proof of financial responsibility or proof that they are capable of compensating anyone they might injure in a motor vehicle accident wherein they are at fault. The purpose of carrying financial responsibility, or liability coverage, is to be able compensate an accident victim for the bodily injuries that he or she sustains and for all other costs or losses resulting from the injuries.
In 48 states, proof of financial responsibility can be shown by carrying auto liability insurance. The type of insurance coverage that drivers need to carry though, depends on the “liability” system recognized in the state where they reside. In states where the “fault” system is recognized (also called “at-fault” or “tort liability” system), the tort insurance coverage is what drivers will need to purchase.
Under the “fault” system, accident victims get compensated either by the at-fault driver’s insurance company and/or by the at-fault driver himself/herself if the victim decides to file a civil lawsuit against him/her. Compensation should cover cost of medical treatment, loss of income, pain and suffering, and damage to property.
In “no-fault” states, however, accident victims can recover financial losses from their own insurance providers, regardless of who was at fault in the accident. One major advantage this system has over the “fault” system is that the victim will no longer have to file a lawsuit just to seek compensation. Without the need to file a lawsuit, getting the compensation that one needs is made faster.
This “no-fault” arrangement should be beneficial to drivers getting involved in accidents, well, except for the fact that many insurance companies, according to the Hankey Law Office, are not always willing to pay out the benefits to which their policyholders are entitled. The Hankey Law Office also says that anyone who gets injured in a no-fault car accident should never settle for a lowball offer from his/her insurance company. Instead, he/she should let an experienced no-fault car crash attorney to help him/her claim the full amount of compensation that he/she needs and deserves.