Reader’s Question:

What does it mean when you say “no-fault insurance”? Im from Springfield, Missouri.

Amelie

Springfield, MO

“No-fault” insurance refers to medical coverage which an individual is required by state law to carry on your car insurance. Though almost all insurance providers sell some type of medical coverage for their car insurance policies, not all states have “no-fault” statutes, . If you got involved in an accident for which you aren’t at-fault, and you live in a “no-fault” state, your own car insurance must pay for your medical bills.

Missouri No Fault Insurance

The “no-fault” insurance part comes from the fact that even though somebody say, plowed into the windshield of your vehicle while you were stopped at a red light, your own insurance company must pick up the ambulance, hospital, rehabilitation, etc. Some states allow “no-fault” insurance company to go after the at-fault party, but this differ too much to discuss here and it’s also relatively rare.

It’s based typically on the amount of the medical bills or the weight of the at-fault party’s car. Most people who live in “no-fault” states usually believe they can prohibit their insurance company from paying their bills (with the assumption that they don’t want any payments made under their insurance policy in case their insurance premiums go up).