Car Insurance

By: Gary Giardina

If you own and drive a car, it would be in your best interest to know exactly where you stand with car insurance. Although this knowledge is basic for most licensed drivers, there are many others who do not have all of the facts they need in order to be an informed consumer.

One of the most important examples is no-fault insurance. If you live in one of the states where no-fault insurance is required by law, you may be one of the many who is not completely certain of its purpose, its benefits and drawbacks, and what it will all mean to you if you happen to become involved in an accident.

One general principle of no-fault car insurance is that it is the most time-efficient manner of dealing with the financial implications of car accidents. When it is applied correctly, an individual who has been in an accident will not have to waste an unreasonable period of time dealing with lawsuits, nor will he have the concern that adequate medical treatment for injuries which he suffered in the accident may not be covered.

The other important aspect of no-fault car insurance is that it places a limit on an insurance-holder's liability in the event of an accident. This means that even if you are the direct cause of an accident due to your own reckless or negligent driving, your insurance will cover the other driver's damages without any out-of-pocket expense to you. The worst that could happen is your insurance premiums may be raised if your particular insurance company deems you to be a risk.

While no-fault car insurance gives both drivers an even break, you may wonder where time-efficiency and the mutual financial obligations to cover it fit in with the concept of fairness. No-fault car insurance could also be referred to as "both-fault"-- for even if one driver had no actual responsibility for the accident at all, he has the same obligations as the driver who caused the accident.

If you are a conscientious driver who does not take unnecessary risks, you may be looking at the subject of no-fault car insurance from an opposing viewpoint. You may not like the fact that the reason why you are obligated to pay such high insurance rates is because you are assuming equal liability. A part of this is the financial consideration-- you may be a very safe driver, you may never have had an accident, but under no-fault insurance you will be paying more than you normally would without this type of insurance. However, even though the financial considerations are certainly important, the other drawback to equal-liability is also an issue to many people. The fact that the only involvement you need in an accident is to be a part of it does not make the no-fault type of car insurance very positive. Under no-fault insurance, the safest and most responsible drivers are paying-- in more ways than one-- for those drivers who do not possess these characteristics.

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