A no fault car insurance policy pays for your accident damages, regardless of whether or not you were responsible for the collision.
However, there are 3 main downsides of having a no fault insurance policy.
The first downside is that...
1.
You Still Have to Pay for Car Damages Despite what people think, a no fault insurance policy does not pay for all your damages.
If you were in a car accident, you may still have to pay for your car repair.
This is because the policy only pays for your personal injury expenses and lost working income.
If you want money for your auto damages, you will have to follow the same steps as someone who lives in a fault state.
This means you will have to start a car accident claim against the other vehicle driver's liability insurance or collect money from your own auto collision coverage.
The problem with this is that getting money for your auto repair can be confusing and stressful.
Most people do not understand how the claims process works.
They make a lot of simple mistakes that end up costing them a lot of money.
People don't understand that the insurance company works hard to give them the lowest settlement possible because, they are after all, a business looking for profit.
As a result, many car owners have complained about getting low settlement checks that do not completely cover their repair costs.
You could avoid the headache of launching a car accident claim against another driver by getting paid from your own collision coverage.
However, in this scenario you will have to pay your insurance deductible, which is typically close to $500 per car accident claim.
The next downside of a no fault insurance policy is that it..
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2.
Does Not Pay All Your Medical Bills If you were injured in a car accident, your no fault auto insurance policy will only pay your medical bills up to your insurance policy limits.
If your medical bills are more than your policy limits, you will have to start an auto accident claim against the other driver's insurance company.
However, before you can begin your insurance claim, you will have to meet your no fault state's minimum cash threshold.
This cash threshold is the minimum amount your medical expense must be before you can file a car accident claim against another driver.
Each state has a different cash threshold.
So before you even start thinking about filing an insurance claim, you have to check if your total medical bills meet your state's threshold requirements.
Otherwise you will have to pay for your expenses out of your own pocket, which can easily cost you thousands of dollars.
Learn how to get more money than your no fault car insurance limits.
The last downside of having a no fault insurance policy is that..
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3.
You Don't Get Money for Pain and Suffering Having a no fault policy prevents you from being compensated for your pain and suffering due to the accident.
This is a big drawback of this insurance policy because in almost all personal injury settlements, the biggest amount of your cash settlement is due to your pain and suffering.
If you are severely injured and want more money, you will have to meet your state's "injury threshold".
This injury threshold is basically the state looking at your injuries and determining if they are serious enough to start a personal injury claim.