If you live in one of the twelve states (DC, FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, UT) that are under a non-fault auto insurance system, you can cause an accident, yet your insurance company won't pay for the other parties' damages.

This means you live in a state that both requires drivers to carry insurance for their own protection and places limitations on their ability to sue other drivers for damages. Your auto insurance company will pay for your damages (up to your policy limits), regardless of whom was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies. Since all are required to carry insurance, in theory, there should be no uninsured motorists in those states, I did say in theory.

These states opted for the no fault insurance system because it guarantees every driver immediate medical treatment in the event of an accident. Further, it's intended to reduce the legal and administrative fees associated with insurance claims. Again, in theory, this should equate to lower premiums. Unfortunately, often times the liability issues that still remain will actually drive premium costs up.

However, because no state is pure no fault, drivers can always be held financially responsible for the cost of injuries they cause in certain circumstances – that's the loop hole. Some states allow injured parties to sue if their injuries meet certain standard for severity, while others allow it when total costs reach a certain dollar level.

If you are involved in a accident, call the police no matter how small a bump it was. Do not let the other person leave the scene; if they try at the very least make sure you get their number plate.

If you have a camera phone use it to take a photo of the car and the driver if possible.
It is worth buying a disposable camera for a few $ and leave it in the glove compartment for just such emergencies.


About the Author
Paul worked in various Insurance markets for 4 years before starting Auto Insurance.