What is no-fault insurance?

No-fault insurance is a type of insurance used in California which helps to cover the costs of an accident regardless of who is at fault. It works by providing the coverage of medical bills, lost wages and other costs directly to the parties involved in the accident, rather than determining who is at fault and then assigning costs accordingly. This is beneficial because it means that no time is wasted in court proceedings determining fault, and that injured parties can receive their compensation faster. No-fault insurance does, however, have certain limitations which must be considered. Firstly, the insurance only provides a limited amount of coverage for medical bills, lost wages, and other costs, meaning that any additional costs incurred are the responsibility of the parties involved in the accident. Additionally, compensation for pain and suffering cannot be claimed through no-fault insurance, so it is best used to help cover the more immediate costs of an accident, such as medical bills and lost wages. No-fault insurance can be a great resource for those involved in an accident, as it provides the coverage they need without the hassle of determining fault. However, it is important to consider the limitations of no-fault insurance before purchase, as these limitations may mean you need to look for additional coverage elsewhere.

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What is no-fault insurance?

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