Many consumers struggle to understand the difference between Tort auto insurance and California no-fault auto insurance. However, the differences are actually quite easy to explain. In Tort states, road users have a responsibility to meet any financial liabilities where third-party drivers are injured or their property is damaged. When you purchase California no-fault auto insurance, you only have a liability to yourself.
California no-fault auto insurance is a legal requirement and every single road user has to meet the minimum levels of mandatory coverage. At the very least, motorists are obliged to purchase $15,000 worth of personal injury liability per person, $30,000 worth of personal injury liability per accident and $5,000 worth of property damage liability. Naturally, policyholders have the choice to enhance their coverage with additional options but at the very least, the minimum requirements must be in place.
If an accident occurs and a claim is made, motorists with California no-fault auto insurance do not make claims on the policy of the at-fault driver. Instead, all costs relating to injuries and accident damage should be claimed on personal policies. California no-fault auto insurance was introduced as a means of providing effective resolutions to accident claims. Under the old Tort system, Californian courtrooms were awash with legal cases relating to accidents and this put unnecessary pressure on system. The introduction of California no-fault insurance has made life much easier when accidents happen and unless the circumstances that surround a traffic collision are extraordinary, a fast and effective resolution can usually be achieved.