No-Fault Insurance
No-fault auto insurance is a contract in which an insurance company covers a driver's losses--no matter who caused the loss. Some U.S. states mandate no-fault auto insurance. This means that in an auto accident resulting in an injury, the insurance company must pay for the medical expenses of the injured party (and passengers), no matter whose fault the accident was. The injured party is, in return, not permitted to sue for the accident. Most states have adopted a modified no-fault insurance plan; in such cases you may be able to sue for some non-economic damages after an accident. Check your state's laws and call your insurance company for the specifics of no-fault insurance. If you are in an accident and have no-fault coverage, file a claim with your insurance company to receive medical reimbursement.
Add-Ons
If you live in a state that does not require insurance companies to include no-fault insurance, you can purchase an "add-on." Add-on no-fault insurance allows you to pay the insurance company extra money for no-fault insurance on top of your regular plan.
Physical Damage
If you are in an accident and there is physical damage to your car, the damage is not covered under a no-fault policy. If you need reimbursement for accident damage to your automobile, call your insurance company to see if it is covered under your collision policy. If it is not, you may need to file a lawsuit against the other party in the accident if the accident was their fault.
