No Fault Insurance Questions
What is “no-fault” insurance?
No-fault insurance does not mean that drivers are never at fault in traffic accidents. Someone is always found to be “at fault.” The name means that if you’re hurt in an accident or your vehicle is damaged, then you deal with your own insurance company when making a claim, regardless of who is at-fault for causing the accident. By going through your own insurer, you get the financial assistance immediately.
How does it work?
The Fault Determination Rules decide who is partially or fully responsible for an accident. The law then requires insurance companies to assign a percentage of fault to all drivers involved. These rules, set by the Insurance Act, help insurance companies deal with accident claims quickly and economically. The Fault Determination Rules differ from any police charges.
Will police charges or convictions affect your insurance company’s decision?
If police don’t file charges, it doesn’t necessarily mean the insurance companies investigating the circumstances of the accident will not find one or more of the drivers involved at fault. For example, if a driver slipped on an icy road and rear-ended another vehicle, a police officer could say that no one was “at fault,” but the determination rules would hold that driver responsible for the accident.
How will an at-fault accident affect me?
You can be anywhere from 100 percent to zero percent at fault. However, if you are deemed even 1 percent responsible, you will have an “at-fault” accident on your insurance record. This means your premium may go up upon renewal. Some insurance companies, however, allow you to maintain your driving record after your first at-fault accident. In most instances, if you have your first at-fault accident after six or more years of claims-free and conviction-free driving, your premium may not change at all. Or if it does change, it will only go up by a small amount.
What if it’s really not my fault?
That determination lies in the chart. For example, it its icy outside and you were unable to stop your car and rear-ended someone, the fault rule states that the vehicle that rear-ends is the one at fault, regardless of outside conditions.
What can you do if you disagree with your insurance company’s assessment of fault?
You can contact your insurance company and speak with the claims adjustor who handled your case. Bring any new evidence before the insurance company. If your insurance company won’t modify its decision and you still disagree, speak to a highly experienced no fault lawyer.
THE PERSONAL INJURY LAWYERS