If you`re like most Americans, you spend over 17,600 minutes behind the wheel of your car each year—or a whopping 290 hours total. In other words, whether you love it or hate it, driving is a crucial pastime for most of us. It`s also an activity that can become dangerous in a matter of seconds. With all the time you spend on the road, the chances are good that you`ll end up in an accident of some kind multiple times in life, whether it`s a minor fender bender or a major collision. When that happens, it pays to be prepared—and no-fault insurance can help. Of all the car insurance types, this option tends to be little-known and less often used, but it`s a great choice for the majority of drivers.
Here`s what you should know about this essential type of insurance.
What Is No-Fault Insurance?
If you`ve been involved in a car accident, no-fault insurance can help pay for the costs of medical bills for both you and your passengers. This is true whether or not you are at fault for the accident, and it sets no-fault insurance apart from other options like liability coverage, which only pays for claims after one party is found to be at fault.
In the United States, “no-fault insurance” often refers to personal injury protection insurance (PIP). In Canada, the details can be different, so check this guide to no-fault insurance to learn more.
What Does No-Fault Insurance Cover?
As stated above, no-fault insurance covers the medical bills for both you and anyone in your vehicle. However, depending on the policy, it will also cover a range of other conditions, like your health insurance deductibles, lost wages due to an injury, essential services like child care if your injury prevents you from doing them yourself, and even funeral expenses.
No-fault policies will not cover damage to either vehicle, nor will they cover property damage resulting from the accident.
When Do You Need No-Fault Insurance?
Certain U.S. states require PIP insurance, and other states encourage drivers to buy these types of policies as a recommended option. Other states do not offer PIP insurance at all. Do your research to find out what the requirements are in your state.
In Canada, many provinces—including Ontario and British Columbia—require drivers to have no-fault insurance. Again, make sure you have purchased the required insurance in your province before hitting the road.
In general, if the area where you live recommends but does not require no-fault insurance, it`s a good idea to purchase it anyway. No-fault insurance offers helpful coverage that other insurance and collision insurance will not, allowing extra peace of mind following an accident.
Get Protection When You Need It Most
Of all the types of insurance, no-fault insurance can be a great option for drivers who want to know their health is protected no matter what.
Regardless of who is at fault for a collision, these policies can help cover crucial medical costs for you and all of your loved ones in the vehicle. Be sure to learn the insurance requirements where you live, and opt for no-fault insurance if possible!
To learn more about staying safe behind the wheel, be sure to check out our other guides.
