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Several provinces have adopted a no-fault insurance system designed to help streamline the claims process. This system can be very beneficial to insurance customers, but it can also be confusing. If you aren?t quite clear on what no-fault really means and how it affects your insurance, you are not alone. Fortunately, no-fault insurance is not complicated; it simply outlines how claims are handled by the insurance companies involved.
A common misconception about no-fault insurance is that the insurance companies will not make a fault determination in the event of an accident. Having no-fault insurance doesn?t mean you can?t be found at fault for an accident. In every claim situation where two drivers are involved, the insurance companies will always determine who is at fault.
No-fault insurance simply means that it does not matter who is found at fault; your insurance company will handle your claim and pay out for damages and injuries to you. The other person?s insurance company will do the same. Someone will still be determined to be negligent in the accident, and that person may experience a potential car insurance rate increase. Fault can also be split between the two parties in percentages, in which case both may see an increase in insurance rates.