How do you claim no-fault auto insurance benefits?

Claiming No-Fault Insurance Benefits

States providing generous no-fault benefits also appear to better facilitate the rehabilitation of seriously injured accident victims than do those with traditional laws.

The reason is that since benefit payments are made more quickly in no-fault states, accident victims can afford to begin required rehabilitative treatment sooner after their accident, when treatment is likely to be most effective. (For example, the Automobile Club Insurance Association in Michigan, a major auto insurer in that state, recently had 623 cases of catastrophically injured victims on its books. Of these, only 15 were in nursing homes.)

Because no-fault has resulted in fewer lawsuits, taxpayers realize significant savings in court costs and other public legal costs. (According to former Chief Justice Warren Burger, every jury trial tort case costs taxpayers approximately $8,300 in court and other public costs.)

In sum, the report found that by every conceivable measure, those injured in auto accidents, are, on average, better cared for under strong no-fault laws and that taxpayers are also advantaged by such laws.

Find Direct Auto Insurance Online

In terms of value for their premium dollars, insurance buyers get the best deal from strong no-fault auto insurance laws that offer adequate first-party liability coverage and restrict lawsuits only to extremely serious situations involving catastrophic or near-catastrophic injuries. Start comparing direct auto insurance online. 

The public also benefits from laws that provide for verbal thresholds on lawsuits, since monetary thresholds with “dollar targets” tend to encourage accident victims to run up higher medical bills to qualify as lawsuit plaintiffs—which helps to drive up third- party liability premiums for everyone. In general, the insurance industry favors strengthening half-hearted laws—which have sometimes unfairly given the no-fault concept a bad name—to give no-fault auto insurance a chance to work. Where strong laws have been enacted, no-fault has achieved both strong protection for accident victims and the stabilization of auto insurance premiums. Find direct auto insurance online.


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