About 16.1 million cars and trucks were purchased in the U.S. in 2015. These add to the 253 million motor vehicles on roads and highways all across the U.S.
The continuous increase in the number of cars and truck on U.S. roads is a signification of a growing economy. This increase , however, also hints on the possibility that the number of automobile crashes remain to exceed five million every year – crashes that injure two million drivers, passengers and pedestrians, and kill more than 30,000.
Whenever a car accident occurs, cost of medical treatment, days off from work which result to loss of wages, and property damage are a victim’s immediate concerns. Good thing carrying auto liability insurance is a basic driving requirement in all U.S. states (with the exception of New Hampshire, where drivers can show financial responsibility through other ways).
The type of auto liability insurance a driver is supposed to carry depends on the liability system recognized in the state where he/she resides. In Florida, Michigan, New York, Hawaii, Kansas, Massachusetts, Minnesota, North Dakota and Utah, drivers are required to carry a no-fault liability car insurance policy (the states of New Jersey, Pennsylvania and Kentucky allow drivers to choose between no-fault insurance and fault or tort insurance coverage).
Under the no-fault system, compensation (to the driver and his/her passenger/s), which includes medical expenses, lost wages due to the injury, and funeral expenses (in the event of death) is paid by his/her own insurance provider rather than the at-fault driver’s (insurance provider). This takes away the need to file a claims lawsuit against the at-fault driver (which is the case under the fault or tort system), except in cases wherein damages exceed the insurance limit. The driver’s own insurance provider pays the compensation regardless of whose fault the accident was.
According to the Hankey Law Office, however, insurance companies are not always willing to pay out the benefits to which their policyholders are entitled. At other times, insurance firms make a lowball offer – something that a policy holder should never accept.read more