Finding the best insurance for at-fault and no-fault states
At-fault systems vs. no-fault systems
Legal systems vary depending on where a person lives, but most places have either an at-fault system or a no-fault system. In America, there has traditionally been an at-fault system, which is based on British tort laws. When something goes wrong, either one party or the other is responsible for it. They can be taken to court where they either win or lose; there are no gray areas. Winners get everything while the losers pay the price. Attorneys can become quite wealthy winning these kinds of cases. The downside of an at-fault system is that it can take a long time to come to a decision about who was responsible for an accident. It can also breed hostility between the two parties, and these cases can clog up the court system.
In other countries, no-fault systems are more common, and when accidents happen, no one fights over who was responsible. Everyone has insurance. Should an accident occur, the policyholder makes a claim for their damages. The insurance company then decides what amount to pay the policyholder for their medical expenses or property losses. Rather than someone winning or losing, everyone is fairly compensated without a conflict, and insurance rates are lower as a result.
Whether a place has an at-fault or no-fault system largely depends on their culture. In some places, people are more focused on compromise than conflict, and the laws are created to reflect that. Most states in the U.S., however, have at-fault systems when it comes to car accidents. There have unfortunately been a number of problems with the no-fault system in this country, namely that more people make false insurance claims in the hopes of gaining compensation. No-fault states generally have higher insurance rates as a result so that insurance companies can protect themselves from fraud.
Other countries don't seem to have this problem, and people pay relatively low insurance rates. More enforcement of the laws is needed in the United States to guard against insurance fraud. That's the only way more states will ever be able to switch to a no-fault system of insurance. If you're a driver living in a state with a no-fault system, it's important for you to as many compare auto insurance quotes as possible in order to find a policy that's right for you financially.