Allsurance Group agents in Spartanburg, SC are specialists in auto insurance policies and can compare and contrast the difference between no-fault and fault policies. The philosophy behind no-fault insurance is to avoid lawsuits by limiting the liability of the parties in a car accident and not requiring the parties to prove who was the cause of the accident or who was at fault. Twelve states and Puerto Rico are no-fault insurance jurisdictions. South Carolina is not a no-fault jurisdiction and permits lawsuits.
Standard No-Fault Policies Have Three Sections:
Personal Injury Protection (PIP)
- If anyone is injured, PIP pays the medical costs up to the state’s limits of the lost earned income for up to a certain number of years. For instance, Michigan’s PIP is 85% of the earned income which is reimbursed but only up to three years with a present maximum of $5,541/month.
Property Protection (PPI)
- No-fault pays up to a certain limit for damage a car may be responsible for to the property of others, including damage to buildings and parked cars.
Residual Liability Insurance – Bodily Injury
- Thus, in no-fault jurisdictions, even if there is a bodily injury to the drivers or passengers, no lawsuits are permitted because the liability of those who were operating the car or cars is limited by the limits of the no-fault insurance policy. As a result of no-fault insurance, insurance premiums are reduced as a result of the elimination of significant civil judgments. However, while lawsuits are prohibited there generally is an exception if a person is killed, disfigured, or injured severely.
Allsurance Group in Spartanburg, SC will cover your back and advise you through the car insurance policy process. Please contact us and have your questions answered!