Almost every state has laws stating that people have auto insurance, but the actual regulations regarding auto insurance vary from state to state - so the type of coverage that you require depends on the state in which you live in.

Even if there are no laws, it is highly recommended that you have some form of cover; otherwise you may end up paying out huge amounts of money in the event of an accident, or even losing your home, in a worst-case scenario.

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USA No Fault Auto Insurance

There are many ways to acquire cheap no fault insurance in USA. In many cases, it requires a fair amount of research on the web to find the best deal. It is a widely known fact, but often ignored, that the same company may offer lower rates online than with an agent or over the phone. Anytime companies can lower overhead and reach their target audience it means a discount to the end user.

No fault insurance is currently available in only 12 states and Puerto Rico. You may purchase no fault insurance in Florida, Michigan, New Jersey, New York and Pennsylvania have verbal thresholds. The final seven states; Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah, use a monetary threshold. Three states have a "choice" no-fault law. In New Jersey, Pennsylvania and Kentucky, motorists may refuse the litigation threshold and opt to sue for any auto-related injury.

The thresholds - both verbal and monetary - mean simply that motorists have the right to sue for severe injuries plus pain and suffering if the case meets certain criteria. The criteria known as a threshold, relate to the severity of injury.

The idea behind no fault insurance is to minimize the involvement of the courts and to lower the cost of insurance by making the insured's own company pay for minor injuries and damages instead of going through the costly claims process. Personal injury protection or PIP is in place to cover a specific dollar amount of your injuries due to an auto accident. PIP usually starts at a $2500 allowance for injuries and basic care. In some states it is mandatory that drivers carry PIP on their auto insurance policy.

The debate surrounding no fault insurance started in the sixties and continues to this day. One of the flaws that attached itself to the no fault concept is the opportunity for fraudulent claims. The monetary threshold has been accused of inviting inflated medical bills, because it targets a specific dollar amount.

Whether you search online for cheap no fault insurance or find an agent to provide coverage it is imperative that you not only read the fine print but do your homework and see how no fault coverage works in your state. After an accident occurs it is too late to change or check coverage.

Car Insurance Q & A

Question: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
Answer: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
Answer: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question: Do I need ‘gap’ insurance?
Answer: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.