How Auto Insurance Works - No Fault States

This video breaks down how auto insurance works. We’ll explain every part of your coverage in a simple, easy to understand way.

The way auto insurance works is based on the state you live in. There are two options: AT FAULTS STATES & NO FAULT STATES.

This video explains how NO FAULT STATES work.

Here’s the details:
Your auto insurance policy should cover:

PIP (Personal Injury Protection) 2:20
Coverage for you, your family, and your passengers’ injuries. Can cover medical expenses, lost wages, pain & suffering, etc. no matter who’s fault the accident is

COLLISION (3:56)
Coverage for damage to your vehicle. Usually has a deductible.

OTHER THAN COLLISION (5:47)
This covers damage to your car that is not the result of a traditional car accident. Tree limbs falling, garage fires, and impact with an animal fit this category. Usually has a deductible.

BODILY INJURY LIABILITY (7:23)
Liability Coverage is still an important part of your auto policy. Why? Well, you travel around in a huge metal bullet just inches from strangers. Make contact and you’re their worst enemy. Hurting other people’s bodies is much more likely in your car than your house and that’s why auto liability coverage is required by law. In no fault states it is less important, but it’s still necessary. In the worst-case scenarios, the at fault driver can still be sued because of an accident.

PROPERTY DAMAGE LIABILITY (9:18)
Again, in no fault states this coverage is less important but there are scenarios where your policy would have to pay for damage to someone else’s property (car, home, etc)

UN/UNDERINSURED MOTORIST COVERAGE (12:30)
Some people break the law. Others just carry to lowest possible liability limits required by law. So when those people run into you, it’s a bummer. Fortunately, your Un/Underinsured motorist coverage is there to protect you.

RENTAL REIMBURSEMENT(16:03)
Coverage for a rental while your car is being fixed. This only applies if the damage to your car is from a covered accident.

ROADSIDE ASSISTANCE (16:45)
More and more companies are offering this service as a part of your auto insurance policy

There you have it!

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[Darruus]

I’m a p&c desk underwriter and my job often involves non-renewing policies. I sometimes have people appeal and say “how can you put me at fault for this accident, I live in a no-fault state.” So I then have to explain that doesn’t mean there’s not an at fault party. You still backed into them or rear ended them or whatever the case is.

[ElloBoppit]

These are super helpful videos, insurance in these situations are enigmatic, and you help explain many of the terms used by the insurance agencies.

[chihlinko]

Great video, now I know the differences between bodily and pip

[MsPrettymamii]

I wish this video was available 22yrs ago when I began working as a No-Fault Examiner!! This is by far the most simplified explanation of what No-Fault entails. I can say, the refreshment course was greatly appreciated 😉

[adrianford]

7:23 THANK YOU SO MUCH THIS IS JUST WHAT I NEEDED TO HEAR

[reinaldoartiles]

Great video. Simple to follow and easy to understand.

[autoinsurancechannel]

Good information and very helpful. Thanks a bunch

[keniagonzalez]

im taking p&c text this video is really helpful ...Thank you !

[scopeinsurancebrokerage]

GREAT VIDEO, LEARNED A LOT .THANK YOU

[thesouthernmostsun]

i used this as study material for work, thanks, now i might not get fired

[twalsh]

I live in a no fault state. Say someone backs up into me in a parking lot (I'm parked and I just left the store, witnessed the fender bender). When I file the claim, will my insurance rates go up?

[silviaamorim]

Help me please . No fault 3 claims, nobody help me I can’t drive a car that people destroy. State Farm kicking off a car that I don’t even drive . The car is in GA I live in FL!

[desert-baytan]

I came here because I was hit in the rear end and it threw my drawer forward and chipped the tooth now I don't know what to do next their insurance is Allstate I did go to the hospital have an MRI because I couldn't swallow my neck was swollen on the inside and they did MRI in a chest that's right

[neilpostlethwaite]

Insurance in US is nickel and dining madness.