Any insurance experts? Trying to understand "no fault" coverage

[ME30W]

My main question is: If i choose to not carry collision coverage on my car, and someone else hits me, would that persons insurance cover the bills OR would I not be paid for repairs as I do not carry collision coverage?

[ForcedFirebird]

Lack of collision means if you wrap your car around a tree, you're out of luck. You are required to carry coverage for damage you do to other property, so if you are at fault in an accident, your insurance pays for the other car and you go home walking.

[tig welder]

Think of it in these terms:

Collision coverage - if YOU hit something you'll be able to use your insurance, less any deductible, to repair your vehicle.

Liability coverage - If you hit something or some one & it's your fault the insurance company will pay that up to your chosen limit of liability.

Uninsured motorists (if they have that in NJ) - would cover you, up to your chosen limit & coverage for possible BI (Bodily injury) & PD (Property damage)

Underinsured motorist - EZ to understand ... someone gets "basic" coverage & damage exceeds there limits yours can be added

No Fault is a term used by the state to describe insurance coverages: "In its broadest sense, no-fault insurance is any type of insurance contract under which insured's are indemnified for losses by their own insurance company, regardless of fault in the incident generating losses. In this sense, it is no different from first-party coverage. However, the term "no-fault" is most commonly used in the context of state/provincial automobile insurance laws in the United States, Canada, and Australia, in which a policyholder (and his/her passengers) are not only reimbursed by the policyholder’s own insurance company without proof of fault, but also restricted in the right to seek recovery through the civil-justice system for losses caused by other parties"

In a nutshell ... if your State requires you to maintain LIABILITY coverage to operate a vehicle on public & private roads if someone hits your vehicle, is found to be at fault, then their insurance would pay you to repair your vehicle & repair your body (up to the limits they chose). Typically BASIC coverage won't cover much property damage - your vehicle & the bodily injury you sustain.

It's a crap shoot to not cover physical damage losses to your vehicle.

In some states - liability coverage is not even needed (like Florida & NH to name two).

Get the coverage it's cheap on a 80's or early 90's vehicle ... Don't HOPE the other guy has insurance. Typically they end up NOT having enough.

OK - down off my soap box ...

[ForcedFirebird]

In FL we are required to have property damage, which is just how you described liability.

[nando]

don't carry minimum insurance. it's really not about replacing or fixing the car - it's about the possibility of being sued or injuring somebody.

Trust me, when you're in a fender bender and 4 years 11 months later the person you bumped nails you with a $100k lawsuit (claiming neck injuries, naturally), you'll wake up pretty quickly.

[tig welder]

In FL we are required to have property damage, which is just how you described liability.

I thought Fla. or required PIP (personal injury protection) and all other coverages, unless you have a lienholder , were optional.

I see they updated & got into the real world although the "requirements" are very low:

"Florida is a no-fault insurance state. If you are injured in an accident, your car insurance will pay your medical costs up to your policy’s limits, regardless of who caused the accident.

The minimum limits for Florida car insurance coverage are:
$10,000 of no-fault or personal injury protection (PIP) insurance.
$10,000 of property damage liability (PDL) insurance."

My bad on the earlier statement. I am, however, correct on NH!!

[BlackSpeed66]

I've been an insurance appraiser for about 5 years now. Carrying minimum limts can get you into a world of hurt, especially if more than one car is damaged in a claim. Ohio used to have $7500 minimum PD limits and it doesn't take much nowadays for repairs to reach that, especially on a newer car. Each state is different when it comes to that stuff but apparently there are states out there with minimum requirements that are less than $7500 - that's scary!

Also, "full coverage" does not always include certain injury coverages or rental coverage. Check your policy to see what you're actually paying for before assuming! I just got into it with a customer this week who thought he had rental coverage when apparently his agent is a moron. Sorry bud, not my fault - go read your policy and know what you're getting.

[ForcedFirebird]

I see they updated & got into the real world although the "requirements" are very low

If by "updated" means it happened in the last 22yrs since I got my driver's license, then yeah :p

It has been the same law since I was paying $.98/gal for gas, and yes, by today's standards, they are low.

[BLACKCHARM88]

I went full coverage for 12k, just in case of that 16 girl talking to her bff Jill runs into me at a light. Never can be to safe...

[SmokeE30]

from my experience all insurance is a mean joke, no matter what you pay if you get anything back for your money your rates just go up or they drop you, insurance company's are there to make money, not help you, best bet is to just avoid hitting things lol