In some ways that system resembles the one used for all types of insurance. The industry that insurers motor vehicles did not want to re-invent itself, in order to account for the on-road presence of drivers without proper coverage. Still, the slightly-altered system has some unique features.
Noteworthy features of no-fault insurance
The policy holder makes a claim, regardless of whether or not the policy-holding driver has caused the accident. The insurer must acknowledge that same claim.
You as a policy holder can still expect an increase in the cost of any new premium. There is an exception to this expectation, as explained in the statement about another feature. There is no increase in premium if you have paid for a document that offers what is known as accident forgiveness. Any driver with no-fault provision does have a right to sue the responsible driver, following an accident, with the help of a personal injury lawyer in Camrose or Cochrane.
Actions that lawyers for both sides must take in court:
Lawyer for defendant (other driver) supplied by that same driver’s insurance company. That injury lawyer argues the defendant’s case, while the lawyer for the defendant may try to prove that the plaintiff had carried out an act of contributory negligence, prior to the accident. However, the plaintiff’s lawyer must prove that the defendant was negligent, if the same lawyer hopes to win the client’s case.
Compensations for which the other driver can be sued at the time of a no fault case
• Pain and suffering
• Loss of income
• Other damages
The history behind no fault insurance
The insurance industry introduced the concept of no-fault insurance about 55 years ago. Prior to that introduction, insurers had a limited number of ways for dealing with the losses caused by an uninsured or under-insured driver. In fact, sometimes insurers went so far as to suggest that both drivers ought to carry some of the blame for the accident.
For instance, if a drunk and uninsured driver had rear-ended an insured automobile, and that same vehicle had done some damage to the one in front of it. The driver in the middle car might get charged for that minimal amount of damage. The insurance company would claim that the driver in the middle vehicle could have applied more force to the brakes.
Why did such an unfair system exist? Why did it stay in place for so long? At that time, when no one had heard or conceived of no-fault insurance, such a system received the acceptance of policy holders. In fact, some of the accepting policy holders even went along with insurance companies, after being offered a rather low settlement offer. Back then, personal injury lawyers lacked the ability to go online and promote their most useful services.