Wednesday, January 12, 2011

PIP and No-Fault Auto Insurance - Is "Reform" the Wave of the Future?

What You Don't Know About Buying Car Insurance Can Hurt YouToday, there are now numerous states that are trying to get rid of the PIP and the No-Fault form of vehicle insurance. This is to give way to the new set of laws that are based from the misdemeanour of most drivers.

It was in 1930’s when the PIP and No-Fault insurance started. This used to be another option for the usually expensive and slow process of getting insurance claims. The intention of having PIP and No-Fault insurance is to fasten the process by changing the resolution starting from the courts until to the insurance companies. At first, the PIP and No-Fault vehicle insurance decreased the premiums and the rates for all the car owners.

During the middle years of the 70’s era, there were already more than 20 states that incorporated the laws of the no-fault vehicle insurance. Eventually, the rates of the insurance integrating the No-Fault policies increased. By the early years of the 80’s, these states that pursued the no-fault insurance started to repeal the law one by one. As of today there are only nine states that have the no-fault laws. This includes the states of Utah, Florida, North Dakota, Hawaii, New York, Kansas, Minnesota, Massachusetts, and Missouri. On the other hand, there are eleven states that have the combination of tort insurance system and the no-fault insurance laws at the same time. This includes Virginia, Arkansas, Texas, Delaware, South Dakota, Kentucky, South Carolina, Maryland, and New Jersey. Moreover the District of Columbia also has a combination of the two insurances as well.

Many states are now choosing tort-based car insurance over the PIP/No-Fault insurance. Is this something that the consumers should be concerned about?

This is actually a good news for all the car owners. The tort-based insurance will give you more options especially for the medical expenses. Moreover, the said system will also let the consumers save a lot of money as well. According to the article published at the Denver Post, policy holders can get as much as 30 percent of savings when they choose the tort-based insurance. Clients will get to choose which coverage they want to include in their policy or which should be omitted from the list.

In most cases, the Personal Injury Protection or the PIP, is still available for consumers just in case they would like to include it in their expenses. The PIP can be acquired easily even if you already have a tort-based insurance that does not include this coverage. It would help you cover most of the medical expenses that you have to pay in case of accident. Unfortunately, the coverage of the PIP is limited to $50,000 only. It would pay for the medical expenses caused by an accident while you or any of your family members did while driving the insured car.

Not all drivers have the sufficient insurance to cover for the expenses of damaged properties and bodily injuries. Some are too irresponsible to get an insurance while others are simply underinsured. Therefore, you must also know more details on how to handle drivers like this.

So, what is next?

This is a good time to look at your health insurance to make sure you will have adequate coverage if you drop your PIP/No-Fault coverage. Don't wait until you're in an unpleasant situation to find out if you need more insurance. Fill out our form on the top and get up to five free quotes on auto or health insurance. Be prepared!

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