The no-fault system refers to the insurance system that requires any car accident to be filed as an incident and not a claim instead of suing a person for personal injury. Some countries have adopted these laws, but many still rely on tort. The no-fault system should protect both consumers and insurers from large out-of-pocket costs and potentially large settlements or awards without fault or negligence of either party involved. Here are ways that the no-fault system affects a car accident claim process.
Claims are Filed by the Authorities
Car insurance companies are not involved in the claims process as in other states. If a car accident occurs and people seek medical attention, they will file a claim with their insurance provider. Still, it is up to the authorities and medical personnel to determine fault and settlement requests. Regardless of fault, the insurer or insurance company will respond readily to this claim.
The Insurance Being Paid is Based on the Number of Assets the Accident Involved
Under the no-fault system, a deductible is set for any injuries. This is because in a no-fault system, there is no claim, and it takes place as an incident with no fault or negligence on either side. Accidents are thought to be unpredictable and random, and in such cases, a flat fee will be paid. The insurance company will consider the number of assets they believe to be damaged by the accident. These assets are compared with the amount of damage to determine what kind of payout each person should receive.
The Date of the Accident is Considered in Cases Where Claims are Addressed Via Medical Records
Many people involved in car accidents choose to file their claims via medical records, which is done for two reasons. First, it is easier for them to access their medical records, and second, there is a possibility that they may have filed the claim already with the insurance company or an insurance adjuster. If this is the case, there is no need to file another claim with a different company. Simply taking up residence in another state after an accident is common for many people as they can easily access their medical records by moving to a new form. The car accident claim process is relatively easy if they do not have to deal with another company. In many cases, it is as simple as faxing the medical records to the insurer.
Insurance Companies Can Initially Refuse to Pay Claims
Most people injured in car accidents in the United States will file their claim with a third-party healthcare provider. These providers are insurance companies, and there is nothing more than simply paying them a portion of what they receive. This is where the second reason for filing at medical providers comes into play for many citizens of the United States.
In conclusion, the idea of no-fault insurance was great when the government initially considered it. However, many people feel that it has had a negative effect on their lives as they are often putting off filing a claim for as long as possible to avoid paying high premiums on more than one policy.