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In most states, insurance companies make claim payments based on who was at
fault in an auto accident. Some states, however, operate under a no-fault
system, which means each driver’s insurance company is responsible for paying
for medical bills and lost wages (as covered by their insurance policy),
regardless of who is at fault in the incident. Insureds may still be able to
file a liability claim for medical and income damages above what was paid, and
in some cases, for non-economic damages such as pain and suffering.
The intent of a no-fault system is to lower premiums for insureds by preventing
costly lawsuits, restrict payments for pain and suffering, and create realistic
limits of payment for losses. Each of the 13 state no-fault systems has
different parameters and restrictions. Talk to your Penn National Insurance
agent about the specifics of the law in your state.
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