The Tort state and the No-fault state laws
Posted by Hover | Auto Accident | Posted on September 22nd, 2010
Any unforeseen situation can arise on the road. Thus, it becomes very important to keep your car financially protected. For this you need auto insurance. Auto insurance comes to your rescue when you have met with an accident, or your car is stolen or vandalized. Thus, automobile insurance provides you with safety and protects you from serious financial losses that may result from such accidents. Auto insurance is subject to various laws.
Auto insurance laws are state based in the US. Each state determines its own regulatory system when it comes to insurance laws. There are predominantly two systems operating today. They are the Tort liability system and the No-fault system. However, you can have either or both the systems. You can also have parts of the systems.
The two systems or laws are as follows.
1. Tort state: As per the law in case of tort sates some one has to be found, who is completely liable for car accident. The crash could include one or several cars. In tort states the drivers who are found responsible for accidents are supposed to pay all expenses to the victim and if there is any issues, contact with a car accident lawyer. These expenses will include both bodily injury and property damage expenses. In such cases victims also have the full legal rights to file a court case against a driver who has been negligent. They can file for compensation, for pain and suffering, and also lost wages. Thus, having the right auto policy is very important. You must first understand what is required as per state law and then buy your auto policy accordingly.
2. No-fault states: In case of no-fault states, if there is an accident and it is acknowledged that a particular driver is at fault, then instead of making claims from the driver at fault, you or the other party involved can make a claim against your own insurance company for damages arising from the injuries that you suffer. Thus in no-fault states you do not have to file a court case against the driver at fault (as in case of tort states). In the same way the at-fault driver is supposed to make a claim against his insurance company. That insurance company will assess the claim and will make payments accordingly. So in these states the insurance company is responsible for paying its policy holder, whether you are at fault or not. In these states law suits are prohibited. They are permitted only in case of serious injuries.