What Is and Is Not Covered by No-Fault Car Insurance

• May 29, 2020

After an accident is not necessary. Although no-fault insurance can be used to cover damages following collisions in these states, most plans do not cover everything. It is important to know what specific damages are covered under your insurance plan, and what kinds of damages may require other sources of coverage.

About No-Fault Insurance

No-fault coverage is a safety net for drivers in the event that they are injured in a car accident. In states that rely on a fault-based system for resolving car accident cases, people who are injured in collisions must file a claim with the other driver's insurance company in order to recover compensation for their damages. No-fault insurance eliminates the need to file a claim with the other driver’s insurance company and negotiate for compensation.

What is Covered by No-Fault Insurance?

In general, no-fault insurance covers the costs of medical care, lost wages, and some additional expenses resulting from a car accident. No-fault car insurance covers funeral expenses in the event of a fatal collision as well. The terms of every car insurance policy differ, so it is possible that your coverage will be different.

What is Not Covered by No-Fault Insurance?

Your no-fault car insurance plan will likely not cover property damage caused by a car accident. No-fault car insurance also does not cover non-collision damages, such as vehicle theft or natural disasters. There are also limits to no-fault car insurance, so your coverage will be capped at those amounts. It is possible that your insurance policy will not fully cover your damages, in which case legal action may be necessary.

Additional Coverage Options that May Be Available to You

If you feel that your standard insurance plan does not provide sufficient coverage, there may be optional plans that you can add on to your coverage.

Other car insurance plans that you may be able to add to your standard coverage policy may include:

• Uninsured and underinsured motorist coverage


• Rental car insurance


• Theft coverage


• Fire and natural disaster coverage


• Breakdown and repair coverage

Adding on these policies can be a good choice if you feel that you may need additional coverage in the future. You can discuss which options are available to you with your car insurance provider.

The lawyers of Goodman Acker P.C. can assist you if you have been injured in a car accident. Contact us to discuss your insurance questions and other concerns for free.

Call (248) 286-8100 or complete our contact form to schedule a free consultation with our legal team.