If a state is no fault I would guess gap insurance is very important? Is that how it works?
No fault insurance
- Thread starter Walkin Horse
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I think the State you live in matters a whole lot! "No Fault" seems to mean different things in different States. I'd recommend checking with your insurance broker before making any decisions. They would know for sure.
If you haven't done so, definitely have a discussion with your insurance broker. The "no fault" insurance mandates in some states guarantee some nasty financial surprises.
Here in Florida we have no fault but it has nothing to do with liability for injuring someone or property damage. It is just a form of medical payment called Personal Injury Protection that is primary for injuries involving car accidents. Nothing to do with GAP insurance. GAP insurance pays if your car is totaled and you owe a lender more than the value of the vehicle. The insurance company pays the value of your car not the amount you owe on it. If you buy a new car without a down payment or if you trade a vehicle that is worth less than what you owe and the difference is added to your loan you should have GAP insurance. If you don't owe on your car or you have plenty of equity in it and owe a lot less than the value then you don't need GAP insurance.
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Yes - I did learn that FL's no fault is a bit different.
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I guess what I'm asking is this. If you live in an at fault state,like Va. and someone hits you, they pay to replace your vehicle. If you live in a no fault state, your insurance pays no matter what. Then you need gap. This assuming that the accident is the others fault.
Dash cams can help determining fault. I don't leave home with one.
Also assumes the other driver has the means to pay...as in insurance. Watch one episode of On Patrol Live and you'll be rushing to check your uninsured motorist coverage.
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Actually in at fault states there can be wheel'n & deal'n between the carriers as to how much each is paying depending upon the degree of fault between those involved. When I lived in a no fault state, the primary goal seemed to be keeping the carriers out of court and saving everyone time & money. Appeared to work in that time and place.
This link explains is how no-fault works in Michigan.
