In a pure no-fault auto insurance system the insurance company pays for the economic damages, up to the policy limit, of the insured. Pure no-fault systems will not allow any kind of law suite against the negligent driver for “non-economic” damages including pain and suffering, loss of companionship. Right now there are no states that use a pure no-fault system. All of the no-fault auto insurance states are actually using a modified no-fault system. Insurance companies pay the economic damages up to the policy limit, but there are still opportunities to sue for non-economic damages when the damages exceed the … Continue reading →