No fault auto insurance, in which drivers injured in an accident seek economic recovery from their own insurer rather than suing a potentially at-fault party under many cases, was developed with the objectives of reducing litigation, lowering costs, and providing injured drivers with a speedy and efficient means of recovering for losses.
With those goals in mind, NAMIC has a history of favoring the adoption of such laws to replace traditional tort systems in which injured parties typically sue at-fault drivers to recover for losses. However, in many cases no fault systems have not been implemented in a way to best achieve those goals, and in other cases systemic problems have developed and persisted to a degree that they overshadow the intended benefits. In some cases, such circumstances have led NAMIC to advocate for specific reform measures; Florida and Michigan fit into this category. In others, political realities preventing the opportunity for meaningful reform have dictated that it is more prudent to support the repeal of no fault in some states.
NAMIC will continue to assess reforms to each state’s no-fault law and apply a set of principles that it believes could enable the no-fault laws to become more efficient and less expensive for consumers.