What Happens After An Accident If Either Driver Has No Fault Insurance?

Before creation of no-fault insurance, someone that got hit by an uninsured driver did not have any good options. Still, some drivers complain about the one drawback to no-fault insurance.

Suppose both drivers have no-fault insurance?

In that case each driver would recover certain losses from his or her own insurance company. The covered losses would relate to the medical expenses and any lost wages. No property loss, such as damage to an impacted automobile would be covered by the no-fault policy. Personal Injury Lawyer in Burnaby will inform you that economic damages do get covered, regardless of who has been named at-fault. Depending on the driver’s policy, the no-fault provision might allow for coverage of an injury to a pedestrian.

Suppose one driver has no-fault insurance?

The driver that holds the no-fault insurance stays protected, if hit by an uninsured or underinsured driver. The level of that protection depends on the limits that have been stated in the driver’s policy.

If the driver gets hit by an underinsured driver, the terms of the policy held by the underinsured driver determine the limits of the coverage obtained by the hit driver. The hit driver’s insurance company must match the amount of money that is paid by the company insuring the underinsured driver.

For that reason, it cannot really be said that no consideration has been made of78 who was at fault. The victim’s insurer does consider the amount of coverage held by the underinsured driver.

The benefits and drawbacks to a policy that covers all economic expenses, without identifying the at-fault party:

Chief benefit: The victim that has suffered losses gets compensated quickly.

Drawback, in the minds of some drivers: The injured driver and any injured passengers cannot sue the at-fault party.

There is an exception to the rule that an injured victim cannot sue the at-fault party. A victim can move forward with a lawsuit, if the value of the losses exceeds $4,000. Also, a victim has the right to pursue a lawsuit if someone was killed at the time of the accident.

Possible danger: If the victim gets paid too quickly, the case might be settled before the full extent of the victim’s injuries has been determined. Consequently, the victim might develop other symptoms, and that added medical problem would not be covered by the terms of the quick settlement

Once alerted to that danger, victims should give serious though to hiring an attorney. Even if a lawsuit does not appear likely, it helps to have a lawyer’s assistance, in the event that there seems to be a rush to settlement. Good personal injury lawyers know that no client should settle until all injured parties have reached the stage of maximum medical improvement (MMI).