Which of the following is a benefit of No Fault coverage compared to Tort?

Study for the SGI Restricted Auto Basic Exam. Prepare with flashcards and multiple choice questions, each question comes with hints and explanations. Get ready for your test!

No Fault coverage offers several advantages compared to traditional Tort insurance, one of which is higher accident benefit limits. In a No Fault system, insurance policies typically cover medical expenses, lost wages, and other related costs up to the limits set by the policy, regardless of who was at fault in the accident. This means that policyholders can access benefits more readily without the need for legal action or proving fault, which can expedite recovery and provide financial support immediately after an accident.

In contrast, Tort systems often involve a longer claim process where determining fault can lead to disputes and delays, impacting the injured party's access to needed funds and care. Under Tort, the ability to sue for pain and suffering or negotiate larger settlements may present added challenges and can take much longer, which can be detrimental to individuals needing immediate assistance after an accident. Thus, higher accident benefit limits in a No Fault system are a significant advantage.

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