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Fault vs. No fault insurance

Every auto owner in the United States must have auto insurance coverage in the state where he or she resides. However, many people do not do this as they shop around for cheap auto insurance and obtain auto insurance in states where the insurance premiums are lower compared to the state where they reside. The practice of obtaining insurance in a state where one does not reside is not legal. It is insurance fraud. If an insurance company challenges their insured regarding the state where they reside in, then the insured is responsible for co-operating and providing the insurance company with information, or risk having their insurance company cancel the policy and deny coverage in case of an accident.

There are two types of auto insurance coverage, and they are at fault and no fault auto insurance coverage. The type of auto insurance coverage that one has depended on the state where one obtains the auto insurance.

In an at fault state, the driver who caused or is responsible for the accident must compensate the other party or parties for damages resulting from the accident. As a result, the injured driver can be sued by the driver who caused the accident for tort injuries sustained. However, some states limit the monetary amount that an at fault driver can be sued for. Also in at fault states, the driver who caused the accident may have to pay higher insurance premium after an accident.

In a no fault state, if a driver is involved in an auto accident, then the driver’s auto insurance company will only compensate for injuries that its driver sustained, regardless of whether the driver caused the accident or not.  The purpose of the no fault insurance coverage is to reduce the number of lawsuits that are brought to court. Some of the no fault auto insurance states include, but are not limited to, Florida, New Jersey, New York and Pennsylvania.

In New York State, the law calls for no fault insurance. This results in complex lawsuits when someone is injured in an accident. If you or a loved one has been hurt in a motor vehicle accident, then you may be entitled to money related to damages from the accident for medical bills, lost wages and pain and suffering. Speak to attorney Jayson Lutzky if you need legal representation following an accident. With over 30 years of experience, Mr. Lutzky can explain what your options are and pursue them. He offers free in person consultations, but, in the case of a severe injury, he can visit you in your home or office. Call 718-329-9500 to set up a free consultation or visit www.MyNewYorkCityLawyer.com to learn more.

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