Houston Could Scrap No-Fault Car Insurance Law

A no-fault car insurance law was passed in the beginning of the 1970s in the United States. According to this type of insurance contract, the insured person is indemnified for damages by his own Houston car insurance Texas company, regardless of who was at fault in the accident. The policyholder is not only covered by the company without any proof of fault for the occurrence of the accident, but also limited in the right to look for recovery through the civil justice system for damages occurred due to the other party. The protection provided by no-fault car insurance law is up to a certain limit established by the state law. It is always better to read carefully in your policy papers as to what extent you are covered by the policy.

As per existing no-fault law, policyholder can sue for harsh injuries and for ache and misery only if the case complies with certain provisions. These provisions, called as threshold, relate to the brutality of damage. There are two ways of laying down this information. It can either be expressed in words, known as descriptive or verbal threshold or in dollar figures of medical expenditure called a monetary threshold. Some laws also take in minimum requirements for the days of disability sustained as a consequence of the mishap. Due to high threshold no-fault systems limit lawsuit. They tend to speed up payment of claims and reduce unnecessary costs. Verbal thresholds eradicate the motivation to blow up claims that might subsist in the presence of an in value "objective" for medical payments. On the other hand, in some states the verbal threshold has been worn out over time by extensive legal elucidation of the verbal threshold language.

It is compulsory for all automobile owners to have their vehicles insured. But at the same time the cost of insurance is too high. Many people complain that with the rising cost of living, the government should bring some leniency in auto insurance law. As a result of this, many states are considering giving relief to their people by scrapping no-fault car insurance law. Houston could scrap no-fault car insurance law. This law calls for coverage of unlimited lifetime medical expenses. The idea was to help out those in accidents by quickly coming to the rescue of crash victims. Supporters of the idea of scrapping this law propose that this action can substantially bring down premium rate. Not only that, it can also help limit the amount of medical expense the company shall pay. There is also evidence of cases whereby people collaborate with doctors to show fake accidents and crashes just to take out money from the account of insurance providers. There have been such cases in Houston as well due to which Houston could scrap no-fault car insurance law.

However, there is much of an argument going on in various states, including Houston over the practicality and pros and cons of scrapping this law. So only in future it can be ascertained whether Houston could scrap no-fault car insurance law or not.