Medical Payments/No-Fault Coverage

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It also covers you and your family members while in another individual’s vehicle or as pedestrians.

No-fault coverage, like medical payments coverage, pays reasonable and necessary physician and hospital bills and funeral expenses. No-fault coverage also generally covers lost wages as well as the cost to replace household services normally performed by the individual injured in the accident. No-fault coverage does not cover pain and suffering.

There are two main objectives of no-fault coverage.

• First, it speeds payment to accident victims.
• Second, it intends to lower the cost of auto insurance by reducing the number of lawsuits for minor claims.

To accomplish these goals, each insured’s own insurance company pays medical expenses, lost wages and certain other financial losses resulting from an accident, regardless of who caused the accident. As a result, more accident victims are compensated for their injuries, and they are paid faster. In exchange for these benefits, no-fault laws may limit an insured’s right to sue; however, in cases of death or serious injury, no-fault laws generally allow policyholders or their families to sue.

Personal injury protection coverage implements the no-fault concept. States that have no-fault laws require drivers to buy personal injury protection coverage. This coverage varies from state to state, and similar coverages may be offered as an option in states without no-fault laws.

Before you buy medical payments or no-fault coverage, clarify what it covers in your state. Then look closely at your current coverage. If you already have good medical and disability insurance, you may not need much additional protection. Avoid duplicating insurance coverages. Your insurance company or agent can help you determine what coverages and limits to buy.