Gia Honnen-Weisdorn Weighs in on No-Fault Insurance in WalletHub

In a recent article by WalletHub, the complexities of no-fault insurance were explored, providing insights into how this system operates and what it covers. No-fault insurance requires drivers to use their own coverage for medical expenses following a car accident, irrespective of who is at fault. This system, often linked with Personal Injury Protection (PIP), is mandatory in 12 states.

Pepperdine Graziadio faculty member Gia Honnen-Weisdorn provided expert commentary on the advantages and disadvantages of no-fault insurance laws.

Among the advantages, Weisdorn highlighted the speed and predictability of claims processing, as there is no need to determine fault. This reduces litigation cases and costs for insurers and simplifies the claims process since drivers can handle their claims without relying on the at-fault driver’s policy.

However, she also noted several disadvantages. Policy costs can vary significantly based on personal factors and state requirements. Reimbursement is confined to policy limits, and the ability to sue other drivers is restricted. Additionally, drivers not at fault may see their premiums rise when making claims on their PIP policies.

When asked whether drivers should opt for PIP coverage if it is not required, Weisdorn emphasized that choosing PIP is a personal decision dependent on individual circumstances. She acknowledged PIP’s general benefits, such as covering injury-related expenses, lost wages, and personal services, making it a valuable consideration for most drivers.

WalletHub's guide, enhanced by Weisdorn’s expert insights, provides valuable information for drivers navigating the complexities of no-fault insurance. Understanding these nuances can help drivers make informed decisions about their coverage needs.

Read the full article here.