Traditional Insurance vs No-Fault Auto Insurance

In the world of car insurance, customers will usually be offered a choice between traditional insurance and no-fault auto insurance. These two types of insurance are not always easy to differentiate. For most people, choosing between the insurance policies is complicated by a lack of knowledge. If you are covered by car insurance, you should first know what kind of insurance you have. Then, you can understand the difference between policies.

Traditional Insurance

Although most drivers never use it, the importance of traditional insurance is the power it gives the car owner to sue for reimbursement after an accident. This can cover any number of situations. For example, it covers anything from medical bills to car repairs. Also, keep in mind that it is possible to purchase limited insurance with lower costs. However, this limitation usually limits the right of the owner.

No-Fault Auto Insurance

With no-fault insurance, the driver is entitled to claim compensation from their own insurers, rather than suing the other driver. This was use as a way to take drivers out of the small claims courts. As a result, it has also left some drivers without the ability to sue the driver. This type of insurance offers reduced premiums and still offers compensation.

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