Do you know about Auto Insurance? Or Fault State or No-Fault State? Let’s know all about that. We will know all with an interesting history and example.
About of Auto Insurance and Fault State or No-Fault State
Auto Insurance everybody, my name is Ethen Rotroff. I am an injury lawyer outside of the Philadelphia area. And today, we’re going to be diving into what is a no-fault or fault state. This is a really tricky area, the law is commonly misunderstood. It has to do actually with car crashes. And it doesn’t really have to do with fault. But before we dive into that, along with where I’m going to make sure that your future personal injury case is protected. Because nobody, nobody, nobody, nobody ever thinks of themselves.
As a future plaintiff in a lawsuit, I want to make sure that you are not taken advantage of by auto insurance companies, and that you understand the law well enough that you don’t put yourself behind the eight ball if you need to file a personal injury case or to hire an injury lawyer.
So, what is a false /no-fault state, what it has to do with is actually your medical bills? So, I’m going to give you two different states, and then we’re going to go from there. So, Illinois, Pennsylvania, Illinois is a fault state, Pennsylvania is a no-fault state. Now, let me dive into the exact situation, the same facts in two different states, and how it affects your case and your medical bills. So, in-state one in Illinois, So let’s say that you’re driving into an intersection, and at that intersection, let me just turn down my volume.
So, we now get distracted here at that intersection, you’re approaching what you think is a green light. And then another driver comes in the opposite direction. And they think they have the yellow light. So, you both collide right in the middle of the intersection, you both break your arm and your leg, you everybody gets hurt, both drivers of both vehicles get hurt.
Now in a fault state, what happens, and who pays for those medical bills? Well, in Illinois, what the auto insurance companies get to do is if liability is not clear, then it is not obvious as to when and who pays for your medical bills. So, you get out of your car and you say that was your fault, the other driver gets out and they say that was your fault. And then assurance companies get the opportunity in a fault state to say you pay for it, no, you pay for it your fault, your fault.
And guess you get stuck with the bill, you do. So, while it sounds counterintuitive, living in a no-fault state is actually a great thing. Because what happens is, let’s take that same scenario. And let’s go through another intersection in Pennsylvania. And let’s say you’re going through you think and no you have the green, the other driver thinks and knows they have the yellow, they go through, boom, you collide.
Again, everybody gets hurt, the same thing. And let’s say that you want to go to the emergency room, but you’re, you know, not sure how you’re going to pay for that ambulance, how you’re going to pay for those bills. In a no-fault state, you get your first certain amount of money in Pennsylvania, the minimum is $5,000 available to you. If you use it or lose it policy benefit goes directly towards your medical bills. So, for example, you need to get in an ambulance, you need to get some sort of physical therapy, you need to get checked out you need an X-ray, you need all these things are done that costs money.
Benefits of Auto Insurance
Your own auto insurance company pays for it, you submit it to your own assurance company through something called Pip, or personal injury protection. Personal Injury Protection is a first-party medical benefit. That is a benefit in a no-fault state. So instead of auto insurance companies getting the ability to point at each other and say no, you pay for it, no you pay for it, you actually just call up your own assurance company and say I got banged up, I need this stuff paid for and then they will pay for it.
So, what I would recommend though, is to go to an injury lawyer because that injury lawyer will make sure that an auto insurance company doesn’t take advantage of you. And when you think you’re getting your pit payment they actually send you a settlement payment they say oh sign here and guess what now your personal injury case is washed because they made you sign away your injury case, you didn’t even realize it. So, it is really important to talk to an injury lawyer.
If you get in a car crash and you do get hurt and you’re not sure whether you’re at fault or not, because it’s a no harm analysis. And you’re going to make sure that you don’t sign away your potential settlement. And you’ll get that PIP benefit that you deserve in that state. That’s a no-fault state. So, the basics, no-fault state. You get hurt in a car crash, regardless of whose fault it is your own insurance company will pay for it.
A fault state, the other policy company that is at fault pays for your medical benefits. So, if liability is contested, which happens all the time other than in like a rear-end crash, and guess what, you’re going to be probably footing that bill. It’s not a fun situation if you have the ability to opt-in for first-party medical benefits. Even if you are in a fault state,
I recommend you do it so you don’t get stuck in a situation where you need to get treatment. You can’t afford it. But in this situation, fault state no-fault state. The most important thing is that you get the treatment you need because it is paid for in a use it or lose it benefits through your own insurance company.
Now that’s the difference between a fault station fault state that is defining what peep means personal injury protection. Hopefully, you are never going through something like this, but if you are, and follow along where I’ll make sure you understand what’s going on. And God forbid you got a car crash. Click below for a free case evaluation for auto insurance. I remember my team will hop on the phone with you as soon as you call and make sure all your questions are answered. Thanks so much. Have a great day.