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Fault or no-fault coverage |
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If you live in a no-fault state, your own insurance company pays for any loss or injuries to you, no matter who causes the accident. With no-fault, most claims can be settled quickly, without litigation over who's at fault. However, no-fault can limit your right to sue to recover damages. Individual states set the coverage and place limits on your rights to sue.
In fault states, the person at fault in the accident or the insurance company pays. With a fault system, your right to sue is not restricted (nor is the other party's right to sue you). To find out what the regulations are in your state, contact your local Farmers agent. |
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