Link Between Vehicle Damage And No-Fault Insurance

The provisions linked to no-fault insurance highlight its primary purpose. It was designed to limit the number of lawsuits from those with a personal injury claim.

Personal injury protection (PIP) pays for certain losses:

• PIP covers injuries to the driver of the protected vehicle.
• PIP also covers injuries to any other occupant of that same vehicle.
• Each member of the policyholder’s household enjoys PIP’s protection.

Other needs addressed by no-fault insurance

It covers replacement services. Those are services that address the need for help in the home, if a parent or caregiver has been injured in an accident. Some services also address the need for help with yard care or childcare. If anyone in the policyholder’s vehicle has died, as a result of the accident, then the no-fault insurance pays for funeral and burial expenses. Injured adults could be forced to take time off from work. The PIP (no-fault insurance) benefits include reimbursement for lost wages, as per personal injury lawyer in Sherwood Park.

No-fault insurance does not cover vehicle damage.

In order to have money for any required repairs, the vehicle’s owner needs to purchase collision coverage. The amount of money available for repairs depends on the limits, which are stated in the policy. In other words, an insurance company will not cover vehicular damage that exceeds the amount stated in the policy, which was purchased by the owner of the damaged set-of-wheels.

The owner of the damaged car can arrange to have reported damage fixed at a time and at a place that limits the amount of inconvenience caused by the repair process. On the other hand, a policyholder has the right to obtain an estimate for the repairs, but to delay scheduling the repair work, even after obtaining the requested funds.

Moreover, while an injured accident victim gets treated by the doctor that reported the injury, or by a well-chosen specialist, damage to an automobile does not have to be fixed by the repair shop that provided the estimate. The insurance company wants all injuries treated in the best way possible, but it allows a car’s owner to select the location for any repair work.

Some policyholders care more about savings, than about convenience. Some of them elect to seek out a less expensive repair shop, no matter how far it might be from their home. That is an opportunity that collision coverage has always provided to policyholders. Consequently, it is not an opportunity that the average car owner and purchaser of automobile insurance is apt to sacrifice, in order to allow for introduction of a no-fault insurance system. So, that system’s creation did not account for the coverage of any damage that might result from the actions of an uninsured and negligent motorist.