In Pennsylvania, a “no-fault” insurance system governs how car accident expenses are initially covered. This means that regardless of who caused the accident, each driver’s own insurance company pays for their medical expenses and certain other economic losses, such as lost wages and property damage, up to the limits of their policy. For instance, if a driver sustains injuries in a collision, their own insurance company will cover the medical bills, even if another driver was at fault. This system is designed to expedite compensation for those involved in accidents, minimizing the need for lengthy legal battles to determine fault in minor incidents.
Pennsylvania’s no-fault system aims to provide quick and efficient compensation for accident-related expenses. It removes the immediate burden of determining fault from the claims process, enabling individuals to receive necessary medical care and recover lost income promptly. Historically, no-fault systems were adopted in various states to address issues of delays in compensation and rising insurance costs associated with traditional fault-based systems. However, Pennsylvania’s system allows drivers to step outside the no-fault framework and sue the at-fault driver in certain situations, such as when serious injuries occur, or medical and rehabilitation expenses exceed a certain threshold.
