What is the Difference between "No- Fault" Car Insurance and "Tort" Car Insurance?

A "tort" car insurance system is the one which operates in most American states. This is a traditional type of auto insurance, whereby blame is apportioned to one party in the event of a car accident and financial recompense is apportioned appropriately. A licensed auto insurance agent can help you determine what type of auto insurance is required in your state, whether it's tort or the less common no-fault insurance. You can request a free quote car insurance here.

No-fault car insurance provides coverage no matter who is to blame

"No-fault" car insurance is a type of insurance which gives car owners protection from facing litigation following an accident. The driver with a no-fault car insurance policy is covered in the event of an accident, no matter who is to blame. His or her car insurance provider will pay out – even when the policy holder is at fault – which may be a good thing for drivers who are accident-prone. The policy-holder and other passengers in the vehicle are paid out from the driver's own policy automatically, but they are restricted from pursuing any compensation through the civil court for damages from the other party.

For insurance companies, "no-fault" car insurance is – on the whole – a beneficial thing. It prevents persons who are involved in an accident from becoming embroiled in very costly litigation. Critics of "no-fault" insurance say that "no fault" car insurance does not punish bad drivers enough, and that it can leave victims under-compensated after an accident (although no-fault auto insurance payments are quick, no further payments will be paid after the initial payout, even when a victim suffers after-effects for some time after the accident).

Not all American states offer no-fault car insurance

At the moment, there are 13 states that offer "no-fault" car insurance alongside the traditional tort system. These are:

1. Colorado
2. Florida
3. Hawaii
4. Kansas
5. Kentucky
6. Massachusetts
7. Michigan
8. Minnesota
9. New Jersey
10. New York
11. North Dakota
12. Pennsylvania
13. Utah

The rules are changing frequently however, so always be sure to check with local insurance brokers to see whether your state offers no-fault insurance. No-fault insurance quotes will always be high because the insurance company is far more likely to have to pay out on a claim.