Who Pays for Car Damage in a No-Fault State
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After being involved in an auto accident, the last thing you need to deal with is determining who is responsible for paying you. The rules are different in States that have no-fault state car insurance laws. If you know the ins and out of the system ahead of an accident, you’ll save a lot of time, money and frustration.
Key Takeaways
1. Currently, 12 states follow a no-fault auto insurance system, requiring drivers to carry Personal Injury Protection (PIP) coverage that pays for medical expenses regardless of who caused the accident.
2. No-fault laws generally apply only to personal injury claims. Property damage and vehicle repairs are still covered through the at-fault driver's liability insurance.
3. After an accident in a no-fault state, vehicle owners typically have three options for repairs: use their own coverage, file a claim with the at-fault driver's insurer, or pursue legal action if liability is disputed or damages exceed coverage limits.
4. Personal Injury Protection (PIP) does not cover pain and suffering or property damage, and coverage for lost wages depends on the state's specific no-fault insurance laws and policy terms.
No fault insurance is a type of auto insurance in which after an accident, each driver’s insurance company will be contacted. It aims to accelerate the claims procedure and cut the number of personal injury cases at state court.
A no-fault state auto insurance law forces auto insurance companies to provide Personal Injury Protection or PIP. When you are involved in an accident, this coverage will help you cover your medical bills, lost wages and other out-of-pocket expenses without having to wait for blame to be assigned. PIP coverage is required in 12 states, and is separate from liability coverage, per the insurance company Liberty Mutual.
No-Fault Insurance doesn’t mean that no one is held responsible. It particularly applies to the payment of medical expenses and loss of income. The rules for damages to a vehicle are different from the rules for injuries sustained and pain felt.
Overall there are there are 12 pure no-fault states in the U.S. And if you travel often or move, this information may become relevant for you.
The 12 states that have no-fault laws are:
There is also a no fault requirement in Puerto Rico. Also, three of the above states, Kentucky, New Jersey and Pennsylvania, are considered to be choice states, where the motorist may opt out of the no-fault system and select a conventional at-fault one. Others, such as Texas, Oregon and Maryland, have add-on PIP coverage available as an option.
Your own PIP would cover your medical expenses but won’t be responsible for any vehicle damage. Car repairs are the same; the fault remains an issue, and there are three routes to pursue, depending on circumstances.
If you have collision coverage on your policy, you can make a claim with your insurance company without having to determine who is at fault and can get your car fixed. Collision insurance pays for loss resulting from a collision with another vehicle and/or object. Full coverage will cover losses due to theft or vandalism. Both are optional, but give instant access to repairs without having to wait for the fault to be determined.
Your car’s damage is covered by the at-fault driver’s property damage liability. You will have to look to that person’s policy to determine who’s at fault and make that settlement. Giving them a copy of the police report, photographs of the scene and witness statements will significantly strengthen your claim and quicken it.
A lawsuit may be needed if there’s a matter of who is liable or if the damages are more than the insurance will provide. In most no-fault states, if injuries are more serious than the state’s injury threshold, or medical expenses and lost wages fall outside of the limits of a PIP claim, then drivers can pursue a lawsuit.
PIP or no-fault insurance is a coverage that pays for economic damages that are directly related to injuries from the accident. It is paid out, regardless of the party to blame for the accident.
If the other driver caused the accident it makes a difference in the case even in a no-fault state for a vehicle damage claim, lawsuit, and in any vehicle damage claim with PIP limits exceeded. Creating a solid job scene reputation can pay dividends.
The negligence laws in each state are used when determining claims in insurance companies. In some states, recovery is not available if you were in any way involved in the accident, and, in others, the amount of your recovery will be diminished by your percentage of fault. Understanding the applicable standard can assist you in knowing what you’re in for during the claims process in your state.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
