US residents should be aware of the difference between the Tort system that establishes levels of liability in the event of a road traffic accident and the concept of ‘No Fault’ insurance where nobody is held accountable for an accident unless a particular financial threshold is crossed. There are a number of important points to consider:
- Drivers should never be complacent about their responsibilities when it comes to safe driving. No Fault insurance does not abstain motorists from responsibility altogether. Instead, neither party is held accountable for an accident unless a financial barrier is breached. Negligible drivers can still be held accountable for their actions, particularly if a third party sustains serious injuries or death as a result of those actions.
- While No Fault insurance has had a significant effect in reducing the number of cases that reach court each year, additional claims can often follow for loss of earnings, extensive property damage and expensive medical bills. Because of these factors, drivers are recommended to take out as high a level of No Fault insurance coverage as affordably possible.
- It is vital to note that there are no states within the US with a total No Fault insurance option. Although Michigan can be considered as the closest possible case of No Fault insurance, severely injured parties still have the right to pursue claims against a negligible driver as a means of covering their own expenses.
- Although No Fault insurance may appear to penalize safer drivers in the first instance, it has to be remembered that the system is in place to reduce court costs and lawyers fees that are typically high in an already-clogged legal system. Because of the reduced number of cases reaching court, auto insurance premiums can be controlled with greater effect.