- One of the problems with no-fault car insurance is that it does not always provide fair premiums to drivers. Since the insurance company has to pay for its own driver's wreck, even if it was not her fault, it has to charge more in premiums to cover the losses. In some cases, good drivers do not necessarily receive a large discount on their car insurance premiums. This makes insurance more expensive for the cautious driver.
- Another potential issue with the no-fault car insurance system is that it does not always provide the benefits you need. This type of insurance policy does not provide any benefit for pain and suffering. In some cases, the limits that companies have set on other items can be rather low, as well. Most states have a maximum amount of money that you can receive for medical benefits. If that is exceeded, you have to explore other options to get the money. For example, you may need to file a lawsuit against the person who hit you. In other cases, you might simply have to turn in a claim on your medical insurance and pay some money out-of-pocket.
- Since the medical limits for this type of insurance are comparatively low, some drivers have to take the other person in the accident to court. This way, they can sue the driver at fault to get the rest of the money needed for medical payments or damages. While this can sometimes work, it adds legal costs to the equation. Besides the added costs, it also takes a great deal of extra time to go through the court system.
- In some cases, you may not even be able to qualify for no-fault auto insurance. If you have had a few accidents in the past that were your fault, the premiums for the auto insurance may be so high that you cannot afford them. When this happens, you can either take the risk of driving without insurance, or you can stop driving a car. Some people move out of state to avoid the no-fault insurance laws.
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