September 28, 2007, Newsletter Issue #71: No Fault Auto Insurance

Tip of the Week

The following states are no fault states, which means the auto insurance policies are slightly different than other states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and the District of Columbia. No fault insurance means that there is a system in place that requires all drivers to have auto insurance and there are limits on the amounts of money you can sue other drivers for. Under no fault policies, your own insurance company pays for part (or most) of the damages incurred (regardless of who caused the accident). There is then limited liability on the part of the person who caused the accident. Be sure to do research on your own state to see exactly how the no fault laws apply to you.

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