What Does It Mean to Be in a No-Fault or At-Fault State?

March 26, 2019

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Each state sets laws determining who handles paying for an accident after it occurs. When two parties collide, determining fault is not always the goal. In some states, each person’s insurance pays for the losses. How does this work? Are you in a no-fault or at-fault state? Here is a breakdown of what this means to you. What Is a No-Fault State? In a no-fault state, drivers maintain insurance to cover losses they suffer during a car accident. This type of car insurance covers your own injuries and the damage you suffer. Fault does not matter in this situation. In some states, individuals need to buy PIP coverage as well. This helps cover the medical costs associated with your injuries during an accident. In some states, individuals can still file a lawsuit against the responsible party if the amount of damage is severe. If the amount of loss exceeds the amount of car insurance available to cover losses, you may be able to file a claim against the responsible driver to recoup your losses. Not all states allow this, however.

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HCF Australia

At HCF our purpose is to champion our members’ health. From humble beginnings in 1932, to our long-standing position as Australia’s largest not-for-profit health fund, we provide genuine value to our 1.5 million members through health and life insurance, community care, travel and pet insurance. As part of our 2020 vision we are committed to making health care understandable, affordable, high quality and customer centric. We empower our members with the knowledge and information to make informed decisions about their health. Through our HCF Catalyst program we invest in the future of Australia’s health by supporting small businesses with big ideas, and we fund researchers working to improve health outcomes for all Australians, through the HCF Research Foundation.

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At HCF our purpose is to champion our members’ health. From humble beginnings in 1932, to our long-standing position as Australia’s largest not-for-profit health fund, we provide genuine value to our 1.5 million members through health and life insurance, community care, travel and pet insurance. As part of our 2020 vision we are committed to making health care understandable, affordable, high quality and customer centric. We empower our members with the knowledge and information to make informed decisions about their health. Through our HCF Catalyst program we invest in the future of Australia’s health by supporting small businesses with big ideas, and we fund researchers working to improve health outcomes for all Australians, through the HCF Research Foundation.

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