What you need to know about No-Fault Insurance
No-fault insurance doesn’t mean you won’t be considered at fault for an accident. It can often be a common misconception but the true definition isn’t as straight-forward.
The name could imply that a driver is at fault for an accident, but in reality, i a car insurance claim is paid. In a no-fault system, you deal with your insurance company for your claims whether you’re at fault for the collision or not discusses how.
What Are Some Myths?
There are some misconceptions about no-fault insurance making it a confusing concept to grasp. Many drivers feel as though the term “no-fault” indicates how it impacts car insurance coverage and policy. Here are some common misconceptions:
You won’t be found at fault if you’re in a collision
No one is at fault in the case of an accident
Following a collision, a no-fault accident will not go on your record
These aren’t the case for no-fault accidents. Fault is determined for each separate accident and you may be found with full, partial, or shared fault with the other driver in the accident.
Know the Facts: How does no-fault insurance work?
In the event of a collision, an insurance company only has to pay out the claim to cover a customer’s vehicle damage and the other customer would have to deal with their own insurance company to claim the damage to the vehicle. Insured parties are essentially indemnified by their insurance company for the losses.
As part of your coverage, your insurance company will manage your claim, payout for damages to your vehicle and will also pay for medical bills. The provinces that have No-Fault Insurance include Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island.
Speak to a licensed insurance advisor to learn more or to compare quotes from leading insurance providers to help you save for home, auto, and business insurance.
Learn more about important insurance terms from our glossary.