No-fault does not mean no one is responsible for an accident – The fact about no-fault insurance is that it pertains to how a motor insurance claim is paid out: ” you receive recompense from your own insurance carrier in the event of an accident,” said Anne Marie Thomas, our resident insurance expert, in an interview with the Globe and Mail in 2013.
Before no-fault insurance, you would have had to fight my insurance company to get your claim reimbursed, and as an innocent motorist, you would have been out of cash during the process. No-fault insurance is designed to streamline the claims process. It eliminates the exorbitant expense of protracted legal fights that consume time and money.
Nevertheless, certain provinces with a no-fault system nevertheless permit lawsuits for pain and suffering, as well as actions for financial damages that exceed the no-fault benefits’ upper limitations. Ontario, Quebec, Nova Scotia, New Brunswick, and Prince Edward Island are examples of jurisdictions with no-fault vehicle insurance, while Alberta is considering abandoning its tort-based policy.
How does insurance function when you are not at fault?
What Does No-Fault Insurance Mean?
What is a third-party claim for insurance? – A third-party claim is when you make an insurance claim with the insurance company of another driver. This circumstance involves three parties: the other motorist at fault, the other driver’s insurance company, and you.
You are classified as a third party. In most instances, if you are not at fault in a car accident, the other driver’s state-mandated liability insurance coverage would pay for damage to your vehicle, property, and medical expenses, up to the policy’s maximum. This is especially handy if your policy’s coverage is inadequate.
In no-fault jurisdictions, however, you would make a claim with your own insurance carrier regardless of who caused the accident.