There are various types of car insurances covering different aspects. No-fault car insurance, in a broad sense, indemnifies for any kind of loss regardless of who was at fault, by the insurance company, i.e. in such a kind of insurance, coverage is expanded to catastrophic injury occurring out of an unknown or no fault. It is a part of Third Party insurance.
Lately, due to rising incidents of car accidents and increased premiums in Western Australia, a new scheme was introduced to provide more security to insured clients by offering no-fault coverage in their car insurance. The idea was evaluated with green paper release, over which more than twenty-three hundred positive responses were filled by Western Australian communities. Premier Colin Bernet clearly stated the transparency of decision, which was made on the basis of votes.
This type of car insurance usually facilitates insurers by paying for claims of lower litigation costs and personal injury claims in case of an accident. Usually the providers ask for PIP (personal injury protection), which means that injured person’s medical care is paid, regardless of investigation of fault.
How No-Fault Car Insurance Work?
Let us suppose that there is a collision of two cars in any city in Australia. Given that both drivers need thorough medical checkups, they will rely on their insurers. In any no-fault state, like in Western Australia, insurers will pay for personal medical care. Also, policyholders can also file for loss of wages for a period he is not allowed to work or is bedridden. In no fault state, investigation is excused to prove who caused the incident. No-fault car insurance readily helps drivers by covering rehabilitation expense and funeral expense as well, find out more. This type of car insurance, however, has no concern with property damage of any kind. Thus, it is always advisable to have liability coverage for property damage in your policy. If the car is crushed in a catastrophic incident, collision coverage in your policy will help you replace your car or fix the old one.
Recently, car insurance policy designed for inhabitants of West Australia also covers long term care for clients bodily affected in accidents. If it continues indefinitely for more than one year, it will cost no more than $99, said Premier Colin Barnett. Car insurance premiums won’t be increased on large vehicles like caravans and trailers. However, smaller rises would be seen in mediocre size vehicles like mopeds, tractors and vintage cars.
According to statistical analysis presented by Helen Morton, Minister for Disability Services, there are around 92 car crash incidents each year, leading to disability or long term injury of Western Australian Citizens. Among these, almost 48 do not take responsibility of fault and eventually claim compensation as a gross amount against their car insurance.
Mrs. Morton further stated that the cost for catering all needs, including medical and recreational needs of disabled person in a no-fault car insurance state will be around four million dollars for one person throughout the lifetime.
Surprisingly, the cost of CTP car insurance remains cheaper than in other Australian states, even though it includes new no fault premiums. So far, total car insurance cost is $415 in Western Australia, whereas it is $487 in Victoria and $613, most expensive in New South Wales