April 18, 2008, Newsletter Issue #113: Auto Insurance Coverage: "No-Fault" Insurance

Tip of the Week

Approximately half of the states in the U.S. have enacted legislation for some type of No-Fault Car Insurance. In these states, the victim of an auto accident is paid by his/her car insurance company. Fault is not determined.

No-fault auto insurance was created in an attempt to reduce the number of car insurance claims and litigation. No-fault car insurance laws vary greatly from state-to-state and may or may not cover you when you drive outside the state in which your auto insurance is issued.

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