At Fault vs No Fault Auto Insurance


Hey this is Jeremy from Shine Insurance
and today we’re going to address At Fault vs No Fault auto insurance. Auto
insurance policies are set up based on the rules of your state and there are
two very different approaches. Obviously those two are At Fault or No Fault. Let’s start with At fault. In At Fault
states fault is the primary factor in accidents. So you’re sitting at a
stoplight and someone drives up and hits the back end of your car. They rear end
you. The fault is likely to be on them. That
is fault. We’ve determined whose fault the accident is and in an at-fault state
this would be a major factor in how the insurance policies payout. The insurance
policy on the vehicle that was at fault is responsible for damages. That means
damage to their car and their own injuries as well as damage to your car
and your injuries. No Fault states flip that around. In these states
fault is not a primary factor. So in that same accident the damage and injuries of
each involved party would be paid for by their own insurance policy no matter
whose fault it was. So even if someone rear ends you while
you’re sitting at a stoplight, if you live in a No Fault
state your insurance policy is going to pay for damage to your car and injuries
to you while their insurance policy is going to pay for damage to their car and
injuries to them. So why the difference? Well, it has everything to do with
ambulance-chasing personal injury attorneys. No Fault states are trying to
avoid all the litigation that happens around auto accidents (and there’s tons
of it). So those no-fault states are saying, “hey, there’s way too much
litigation around all of this. It’s costing everyone money, it’s very hard to
figure out, it’s not really fair, and all this kind of stuff.” So they say,
“Look we’re going to have No Fault insurance policies and take that piece
of the puzzle right out of the situation.” However, almost everyone can agree that
the At Fault approach is is really more fair. If you’re sitting still at a stoplight
and someone rear ends you the fact that your own
insurance policy has to pay for damage to your car and your own injuries which
probably means that your insurance rates will go up really isn’t fair. It wasn’t
your fault. You didn’t do anything in the situation. It’s not fair that you have to
deal with all of it. So both approaches have their pros and
cons and I think I’ve just explained why there are the two different approaches. So are you an At Fault state or a No
Fault state? It’s very easy to find out. Hop over to google just type in,
“what type of auto insurance is in my state?” It will give you a list of At
Fault states versus No Fault states. You should be able to find out very very
quickly and then you’ll know whether you live in an At Fault auto insurance state
or a No Fault auto insurance state. So that’s it! If you want to know more about how auto
insurance actually works now that you know which one you are check out some other videos on our
Youtube channel. We’ve got the At Fault video and then we have the No Fault videos. We’ll
break down your insurance policy, how it works, in more detail based on the state
that you live in. On a completely different topic, if you’re
looking to purchase a home, especially if you’re a first-time homebuyer, I’d
definitely encourage you to watch this video. We walk you from beginning to end
through the process from the moment that you say, “Hey,maybe i want to buy
a house” all the way through the closing and your actual ownership of that new
house. So if you haven’t checked out that video and you’re interested in
homeownership definitely head over there and watch that video. So what’s next? As always, the last two steps in this video. One: we hope you go over and subscribe to our Youtube channel. We try
and create great simple easy-to-understand content. Oftentimes
it’s about insurance but not always. Just like our new home buyers guide. We’ll get
that into your inbox right when we post it. Two: if you learned
something during the process of this video we hope that you’ll share it on
your social media channels. I always say, “good information is only great if it’s
shared with others.” So please do share this information with other folks in the
social media world you live in. Alright, hope you gained a little bit of
information and we will see you next time.

11 comments

I have an insurance with At Fault state. But I met with an accident in a no fault state. Will the explanation provided still hold good in this scenario ?

Some one is at fault always Florida is a no fault and it suck big most people carry the min of 10,000 dollars so that is all thay have to pay so if you get hit and it is the other ones fault and you are hurt thay only have to pay 10,000 for your med bills you have to pay the rest so you are f big time I am moving out of FLORDA because of this I was hit in the rear at a light the guy emited he was on his phone and was 100 % at fault my truck was totaled and I was rushed to the ER. I had 3 rubshers disk in my back and had to have sergery I lost 5 mounts of pay and all his insurance was liable for is 10.000 which is the min you have to have in fl so lucky I had a 100.000 on my policy to help cover the rest of the bills but I still had to come out of pocket for a accident that was not my falt never got back pay for work and now I got a truck payment and the rest of med bills and a bad back this no falt is dangerous it is away for people to drive under insured it protects the insurance company not you

You could still be considered no fault in an accident even if you don't live in one of those States It's a hassle if you are not at fault in in fault accident or in an accident that's literally no one's at fault for some reason the insurance companies are mormon willing to get the process moving fast if you're the person and if you're the one who's not at fault insurance companies tried it make you jump through hoops that's what happened to me

Actually I looked it up it's the insurance they The only thing that's different at not at fault States but Is everything else but they say intrudes rates are still measured out by who's at fault so therefore if you still get rear ended its my going to raise your insurance So you're actually wrong about that part

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