No-Fault Insurance No-Longer Popular
According to the Insurance Journal no-fault insurance has become less popular as a way to keep court costs down as well as insurance premiums.
No-fault insurance usually includes certain restrictions including the right to sue other drivers, receiving payments for pain and suffering or other similar damages that are non-economic. States with no-fault insurance regulations typically require that all drivers be insured so that everyone involved in an accident can recover any economic losses directly from their own insurance company.
It was believed this approach would lower costs through minimizing litigation. Unfortunately these types of American automobile insurance. policies are proving to be more expensive due to increased medical cost claims.
Apparantly there is an increase in the tendency by those injured in an auto accident to use more specialized medical treatments because they are more likely to be covered by no-fault insurance and there is also evidence of greater inflation of medical costs in no fault states. How this information will affect legislation in no-fault insurance states is yet to be seen.