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No-fault Insurance


No-fault Insurance

What is No-fault Insurance?

In its broadest sense, no-fault insurance is any type of insurance contract under which insureds are indemnified for losses by their own insurance company, regardless of fault in the incident generating losses. In this sense, it is no different from first-party coverage. However, the term "no-fault" is most commonly used in the context of state/provincial automobile insurance laws in the United States, Canada, and Australia, in which a policyholder (and his/her passengers) are not only reimbursed by the policyholder’s own insurance company without proof of fault, but also restricted in the right to seek recovery through the civil-justice system for losses caused by other parties.

What is no fault insurance in Ontario?

Ontario has a "no-fault" car insurance system, but this does not mean that no one is at fault in an accident. The term "no-faultinsurance simply means if you are injured or your car is damaged in an accident, then you deal with your owninsurance company, regardless of who is at fault.

How does no fault auto insurance work?

No-fault insurance means that your own automobile insurer will pay some or all of your medical bills and lost earnings if you get into a car accident, regardless of who was at fault for the crash.

What is no fault insurance in Michigan?

It is against the law to drive or let your car be driven without no-fault insurance. If you have an auto accident, no-fault insurance pays for your medical expenses, wage loss benefits, replacement services, and the damage you do to other people's property. It does not matter who caused the accident.

What is no fault carrier?

In its broadest sense, no-fault insurance is any type of insurance contract under which insureds are indemnified for losses by their own insurance company, regardless of fault in the incident generating losses. In this sense, it is no different from first-party coverage.

Who pays the deductible in a no fault state?

There is only one instance where car insurance companies may “waive” your deductible payment. And that's when there's a two car accident, the other driver is at fault, their insurance company accepts fault and agrees to reimburse your insurance company for the full amount.

Who pays deductible if not at fault?

If the insurance companies of the parties involved determine that you are not at-fault, you do not have to pay the deductible on your car insurance policy. Your repairs will be covered under the Direct Compensation portion of your policy, which is a mandatory coverage in Ontario.