At Fault vs No Fault Auto Insurance - YouTube

Hey this is Jeremy from Shine Insurance and today we're going to address

At Fault vs No Fault auto insurance. Auto insurance policies are set up based on

the rules of your state and there are two very different approaches. Obviously

those two are At Fault or No Fault.

Let's start with At fault. In At Fault states fault is the primary factor in

accidents. So you're sitting at a stoplight and someone drives up and hits

the back end of your car. They rear end you.

The fault is likely to be on them. That is fault. We've determined whose fault

the accident is and in an at-fault state this would be a major factor in how the

insurance policies payout. The insurance policy on the vehicle that was at fault

is responsible for damages. That means damage to their car and their own

injuries as well as damage to your car and your injuries. No Fault states flip

that around. In these states fault is not a primary factor. So in that

same accident the damage and injuries of each involved party would be paid for by

their own insurance policy no matter whose fault it was.

So even if someone rear ends you while you're sitting at a

stoplight, if you live in a No Fault state your insurance policy is going to

pay for damage to your car and injuries to you while their insurance policy is

going to pay for damage to their car and injuries to them. So why the difference?

Well, it has everything to do with ambulance-chasing personal injury

attorneys. No Fault states are trying to avoid all the litigation that happens

around auto accidents (and there's tons of it). So those no-fault states are

saying, "hey, there's way too much litigation around all of this. It's

costing everyone money, it's very hard to figure out, it's not really fair, and

all this kind of stuff." So they say, "Look we're going to have No Fault

insurance policies and take that piece of the puzzle right out of the situation."

However, almost everyone can agree that the At Fault approach is is really more fair.

If you're sitting still at a stoplight and someone

rear ends you the fact that your own insurance policy has to pay for damage

to your car and your own injuries which probably means that your insurance rates

will go up really isn't fair. It wasn't your fault. You didn't do anything in the

situation. It's not fair that you have to deal with all of it.

So both approaches have their pros and cons and I think I've just explained why

there are the two different approaches.

So are you an At Fault state or a No Fault state? It's very easy to find out.

Hop over to google just type in, "what type of auto insurance is in my

state?" It will give you a list of At Fault states versus No Fault states. You

should be able to find out very very quickly and then you'll know whether you

live in an At Fault auto insurance state or a No Fault auto insurance state.

So that's it!

If you want to know more about how auto insurance actually works now that you

know which one you are

check out some other videos on our Youtube channel. We've got the At Fault video and

then we have the No Fault videos. We'll break down your insurance policy, how it

works, in more detail based on the state that you live in. On a

completely different topic, if you're looking to purchase a home, especially if

you're a first-time homebuyer, I'd definitely encourage you to watch this

video. We walk you from beginning to end through the process from the moment that

you say, "Hey,maybe i want to buy a house" all the way through the closing

and your actual ownership of that new house. So if you haven't checked out that

video and you're interested in homeownership definitely head over there

and watch that video. So what's next?

As always, the last two steps in this video. One: we hope you go

over and subscribe to our Youtube channel. We try and create great simple

easy-to-understand content. Oftentimes it's about insurance but not always. Just

like our new home buyers guide. We'll get that into your inbox right when we post

it. Two: if you learned something during the process of this

video we hope that you'll share it on your social media channels. I always say,

"good information is only great if it's shared with others." So please do share

this information with other folks in the social media world you live in.

Alright, hope you gained a little bit of information and we will see you next time.