What is No-Fault Car Insurance?
No-fault insurance exempts the insured from standard liability for injury, loss, or damage caused in an accident, no matter who is at fault. Not all car insurance options will give you no-fault cover. Many insurance providers won’t pay up if you were at fault. It depends on the type of policy you get.
Comprehensive Plans Usually Include No-Fault Cover
Comprehensive motor policies cover you for damage to your vehicle regardless of whether you were at fault or not. Obviously, you are not covered for damage you wilfully inflict. As you can see, this is probably where the idea or concept of “no fault insurance” comes from.
Often, insurance providers offering no-fault car insurance cover have fixed amounts allocated towards types of injuries and incidents. Insurance providers can justify offering no-fault cover because they reason that car collisions are inevitable. Drivers shouldn’t be punished for it.
Liability insurance, which is included in most car insurance plans, also insulates drivers who through recklessness or negligence cause incidents. Finally, uninsured drivers often can’t pay even when they are responsible. In places where there are more uninsured drivers, much like South Africa, it makes more sense for insurers to offer no-fault cover.
The term “No Fault” is usually used in relation to compensation schemes such as workmen’s compensation. It is envisaged that the Road Accident Fund will become a “no Fault” scheme soon.
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Insurance Expert is a professional when it comes to long-term, short-term and medical cover in South Africa. He has the collective knowledge of an insurance litigator and actuary with as many years in the South African insurance industry as Lloyd has in London. Have an insurance conundrum? Ask our Insurance Expert and he’ll source the answer from one of the specialists in our panel.
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