At-Fault vs No-Fault Accidents – Who Pays? – Technologist

Whenever an accident happens or two cars collide, both parties blame each other for the fault. Identifying who was responsible for the incident is very important as this will help with insurance claims.  

Different states have different rules and regulations, but here we are going to discuss who pays for car damage in a no-fault state.

Who Pays?

In at-fault states, the one who is at fault for the incident will pay for car damage and medical expenses. The car damage in fault states is covered by property damage liability while the medical expenses are covered through bodily injury liability. 

In no-fault states, whoever is responsible for the incident, the driver will pay their medical expenses. They are covered by PIP Personal Injury Protection insurance. The Drivers in no-fault states need to have PIP insurance. 

Introduction to No-Fault Insurance

No-fault insurance is designed to accelerate the claims process and reduce the need for lengthy and expensive legal procedures for those who caused an accident. In no-fault states, each party files a claim with their own insurance company for injuries, regardless of who is at fault. However, regarding car damage, the process is a bit different and not entirely “no-fault.”

Here is a list of states that are considered no-fault states:

1. Florida
2. Hawaii
3. Kansas
4. Kentucky 
5. Massachusetts
6. Michigan
7. Minnesota
8. New Jersey
9. New York
10. North Dakota
11. Pennsylvania
12. Utah

No-Fault Vs At-Fault Insurance 

The main difference between no-fault and at-fault insurance depends on the procedures after an accident. How the parties claim for insurance and who will pay for the loss are the main key points that vary among these two insurance types. 

No-Fault 

• After the accident, in no-fault states, the driver’s insurance will pay for their medical bills as well as lost wages. 
• This type of insurance will not focus on who was involved in the whole incident. 
• It avoids unnecessary fights and lengthy court hearings. 
• Drivers in no-fault states should have PIP Personal Injury Protection insurance that covers their medical expenses, lost wages, and funeral costs. 
• It also limits the ability to sue the one who was at fault, unless the incident is severe causing multiple life-threatening injuries. 

At-Fault

• In at-fault states, the driver who has caused the incident will pay for the medical bills lost wages, and property damage. 
• These states provide liability insurance which will help the driver to pay for these expenses. 
• It is their legal right to file a suing case against the other party for the damages. 

How No-Fault Car Insurance Works?

No-fault car insurance, also known as personal injury protection (PIP), is an auto insurance system designed to reduce the number of lawsuits filed over car accidents. It allows all parties involved to file claims with their own insurance companies for injuries, regardless of who caused the accident. Here’s how it works:

Notify Your Insurance Company

After the incident, the drivers in a no-fault state must inform their respective insurance companies, regardless of blaming who was at fault. Explain the whole event to your insurance adjuster. You can also take pictures or make videos of the incident spot to prove your claim. 

Coverage of Medical Expenses and Lost Wages

No-fault insurance covers medical expenses, a portion of lost wages, and sometimes funeral expenses and services like household help for the policyholder, regardless of who was at fault for the accident. The idea is to ensure that individuals receive immediate medical treatment without waiting for a fault determination. 

Filing a Claim

After an accident, you file a claim with your own insurance company instead of the other driver’s insurer. Your insurer pays out the benefits outlined in your policy, up to the policy’s limit. This process speeds up the payout since it eliminates the need to prove fault.

Restrictions on Lawsuits

No-fault insurance typically restrict the right to sue the other driver involved in the accident. In most no-fault states, you can only pursue a lawsuit against the other driver under certain conditions, such as if your medical expenses exceed a certain threshold or if you suffer from a severe injury defined by state law.

Property Damage

It’s important to note that no-fault insurance usually only covers bodily injury. For Property damage claims, such as damage to your vehicle, you may need to file a claim under your collision coverage for your car repairs or pursue a claim against the at-fault driver’s property damage liability insurance.

State Variations

The specifics of no-fault insurance can vary significantly from one state to another. Some states have a pure no-fault system, while others are considered “choice” states, allowing drivers to choose between a no-fault policy and a traditional tort policy. 

Who Pays For a Car Damage in a No-Fault State?

In at-fault states, the one who is at fault for the incident will pay for car damage and medical expenses. The car damage in fault states is covered by property damage liability while the medical expenses are covered through bodily injury liability. 

In no-fault states, whoever is responsible for the incident, the driver will pay their medical expenses. They are covered by PIP Personal Injury Protection insurance. The Drivers in no-fault states need to have PIP insurance. 

How can you get your car repaired in a no-fault state?

No-fault insurance is only applied to bodily injuries and it covers the following conditions:

• Medical bills
• Out-of-pocket expenses
• Lost wages
• Funeral expenses
• Essential services, like child care and yard work

Now the driver who is at fault is responsible for the damage to the other driver’s property. You can still get your car repaired, Here are some options for it. 

Option 1: You Can Use Your Collision or Comprehensive Coverage

According to the rules, you can claim insurance either through collision coverage or comprehensive coverage. It depends upon the circumstances under which your car has been damaged during an accident. 

Collision Coverage 

Collision coverage will pay for the damage that happens to your car when it collides with another car. If the collision of your car has occurred with a wall, railguard, or any other object, it will still be covered under collision insurance. 

Comprehensive Coverage 

The damage to your car that happened other than the collision will be covered under comprehensive coverage. Theft and Vandalization are included in it. 

It is advised to ask your insurance company, which coverage will best suit you according to the damage that has occurred. 

Option 2: You Use At-Fault Driver’s Auto-Insurance Policy

• If the other driver is at fault, you can use the insurance policy of the other driver to pay for your damaged car. 
• The insurance company of the other driver will make investigations to check for your claim. 
• You can make your claim strong with the help of a police report. Once you file a police report, it is a shred of strong evidence and cannot be neglected. 
• You can also document the incident by taking pictures and videos of the incident place. 
• These will help to make your case strong. 
• But if you cannot prove your claim, the insurance company can put a fight against you. 

Option 3: You Can File a Lawsuit

You can file a legal case against the driver who is at fault. This is a complex procedure that needs time and a lot of money. You have to go through different court hearings, which can be uncomfortable for you.

You can hire a professional lawyer from the start, so he can study the case well. If your injuries are eligible, you can file a case even in a no-fault state.