No-fault auto insurance is probably among the strangest and most misunderstood members of the auto insurance family. Even those who have been living in the no-fault system all their life often don't really understand how it works. We could be here for decades going over the ins and outs of no-fault coverage, but as a driver (rather than a crazed insurance professional) there are really only a couple of things you need to know:
1) With no-fault insurance it doesn't matter who caused the accident and who didn't. Each party is taken care of by their own auto insurance provider after the accident, helping them get back on the road as quickly and efficiently as possible. All the driver has to do is file an auto insurance claim with their insurance provider after the fact, and (with no questions asked and no hassle involved) their insurance company will take care of repairs to their vehicle and, via their personal injury protection insurance, their medical expenses, saving them hours of arguing it out in court (which was the reason that no-fault auto insurance was developed in the first place).
2) No-fault auto insurance doesn't actually mean no-fault. As a matter of fact, that's about the last thing it means! There will still be someone found at fault for the accident, and that someone will still pay the price in increased auto insurance rates and, potentially, in traffic tickets and moving violations (have you SEEN what they're charging in court costs these days?). The innocent passer by will still enjoy the same low rates they always have.
3) When you're a member of the no-fault system you give up your right to sue the driver responsible for the accident, which was probably the real reason that no-fault insurance became so popular! You are, however, still required to carry liability; the courts allow lawsuits for what they deem to be unreasonable expenses, particularly medical ones. Experts suggest you carry a minimum of $100,000 per person and $300,000 per accident in liability insurance, a perfectly reasonable number when you consider the fact that most ICU stays start around $3,000-$5,000 a day.
The no-fault system isn't hard to figure out once you get to the bottom of it-and as a driver, all you really need to know before you hit the highways is what your maximum coverage limits are and that your auto insurance company has it all under control.
