Quote:
Originally Posted by ScoobsMcGee
NYC has a no-fault policy as well. I believe it was to help curb insurance fraud. People would buy two cars with catastrophic issues that are worth something if in perfect working order. They'd then target a victim and have one person box them in, then the other cut in front of them and slam the brakes. Since typically the person who rear-ended someone is at fault without contest, they would collect the value of a pristine vehicle against the victim's insurance.
|
There were several reason why Ontario went no fault and fraud was one of them. The term is confusing since there is actually still fault assigned. Things such as rate increases only impact the person that is at fault so the other person doesn't really take the brunt of the claim. What it really smooths out is the payment of claims. Since there are not two companies d1ckering back and forth payments are fast and relatively easy. Keep in mind that accident claims in Canada are usually just covering the vehicle damage. Since the Health Care is already "free" there are rarely medical costs that need to be paid.