When scheduling an appointment with a car accident lawyer, you need to know whether your state is at fault or not. It’s a pretty big deal because the location of fault and insurance responsibilities affects how you make your claim.
If you think finding an attorney is confusing, wait until you research the at fault or no fault insurance policy for your state. It gets complicated fast, so let us help.
Read on to learn the differences between a no fault and an at fault state.
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No-Fault States
No fault states are states where the individual party’s claim is addressed by their insurance policy in case of an accident. This system reduces the number of civil lawsuits resulting from auto accidents. It seeks to lower insurance costs overall.
In a no-fault state, drivers must purchase a specific amount of full-coverage insurance that pays for lost wages. It also includes medical payments if the driver is involved in an accident.
The main feature of no-fault states is that drivers must file a claim with their auto insurance company first. They cannot sue the other driver in small claims court unless the accident is of tremendous magnitude.
Its main benefit is that the owner of the involved insurance policies will have their damages covered. This is regardless of who is at fault.
At Fault States
At Fault States refer to a system for determining liability for vehicle accidents. This is where the driver determined as being at fault for the accident is financially responsible. They are liable for any resulting property damage or personal injuries caused by the accident.
This means that the driver who caused the accident will be responsible for reimbursing the other victims. This includes property damage and medical expenses or any other losses they incur due to the accident.
This system encourages drivers to remain vigilant while operating a vehicle. They should follow the rules of the road to reduce the occurrence of accidents and injuries.
Differences Between No Fault Insurance vs. At Fault Insurance
No fault insurance, also known as personal injury protection, compensates for medical bills and lost wages. This is regardless of who is deemed at fault in an auto accident. This type of insurance is mandatory in states that have adopted a no-fault system for auto insurance.
At fault insurance, on the other hand, is a traditional car insurance policy. It typically pays for damages caused by the other driver after determining which party was at fault in an accident. At fault insurance typically includes Liability Coverage, Uninsured Motorists Coverage, Comprehensive Coverage, and Collision Coverage.
In a no-fault system, you may or may not need to purchase these coverages, depending on the laws in your state. To sum up, the main difference between no fault insurance and at fault insurance is that no fault insurance pays for some or all of the damages regardless of who is at fault in an accident, while at fault insurance pays for damages based on who is deemed at fault.
Know Your Rights
The differences between No-Fault and At Fault states can make a big difference when dealing with an automobile accident. To determine which kind of state you are in, consult an attorney familiar with your state’s laws.
Researching the differences before needing them can save you time and complications in the long run. Knowing the difference can make all the difference when handling an automobile accident.
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Rosette has a knack for anything DIY. She spent her younger years learning about the different hardware tools, lighting, and equipment in the hopes of establishing a hardware business in the future. Her career options may have changed, but today, she continues to write so passionately about her first love.
