My understanding as follows. I am often wrong.

In a no-fault state  you are paid by your insurance company. So you do not
need to sue the other driver or their insurance company. (Nofault is really
modified no-fault, where there are times and thresholds that allow you to
sue the other driver above and beyond what your insurance pays)

(Although, in many cases, you will need to sue _your_ insurance company, to
get them to pay the nofault claim).

But, regardless of the payment to you, the insurance company is in the
business of limiting their payouts, so they go talk to the other insurance
company, and "work it out". the deals are not handled by lawyers, but
instead by low level clerks, keeping it cheap and quick.

Yes, mostly the overall payments are a wash between them, but from what I
read there are some insurance companies that are more or less at fault than
others.

On Fri, Feb 20, 2009 at 8:33 PM, Gruss Gott <[email protected]> wrote:

>
> > JJ wrote:
> > Even in a nofault state, if you are not at fault, your insurance company
> > will go after their insurance company to be reimbursed.
>
> Doesn't that defeat the whole purpose of no-fault which is to get rid
> of legal cost?
>
> I thought the whole theory was that sooner or later you're going to
> get into an accident so when you do there's no question of who pays -
> your insurance company.  The theory goes, if you're getting hit a lot
> then you're just as poor of a driver than if you're hitting people.
>
> So anyway, I thought no-fault meant that: it's nobody's fault so each
> company pays for the damages to their client.
>
> 

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