Twelve states in the United States have No-Fault Insurance programs, including New York, Florida and Pennsylvania. No fault automobile insurance is also available in Washington, D.C. The way that no-fault insurance works is that if you cause an accident, your insurance coverage only extends to your car and not to others. The purpose of no-fault automobile insurance is to cut down on lawsuits related to traffic accidents.

In states where there is no-fault insurance, you are limited to how much you can obtain in a lawsuit and each company will pay for the damages to the car of the drivers who were involved in an accident through no fault of their own.

No Fault insurance is offered for two primary reasons. They ensure that all drivers have access to medical care for injuries resulting from an accident, without questions. They also are aimed at decreasing subsequent lawsuits.

No Fault insurance limits settlement amounts that may be obtained by clients in lawsuits filed after an accident. All parties involved are deemed " not at fault," no matter who is responsible for the accident.

In some states, the premium for no-fault insurance raises the amount of premiums paid by all policyholders because the insurance companies have to pay related settlements, whether or not holder was at fault. No Fault insurance punishes safe drivers while rewarding those drivers with poor driving safety records by increasing rates and eliminating discounts. Comparison-shopping in the states where no-fault insurance is available can ensure the lowest insurance premiums possible.

Under No fault insurance, each party involved in an accident is required to file a claim with their insurance company. This is aimed at eliminating the abuse of unnecessary medical testing. Following accidents, some drivers will go to chiropractors for years in hopes of obtaining a significant settlement in a lawsuit. No fault insurance eliminates abuse of the medical and legal systems and allows those who need treatment to seek medical attention for injuries.

No Fault insurance has positive and negative benefits. No fault insurance lacks incentives for safe drivers and does not offer safe driver discount programs to reduce premiums.

No Fault does cut down the number of lawsuits and unnecessary medical costs and ensures all parties have access to immediate medical treatment for accident related injuries.