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October 16, 2021

What Is a Fault State for Car Insurance?

October 16, 2021

Getting into a car accident can be complicated and frustrating for many reasons. To make matters more difficult, you might be confused about whether you live in a fault state or a no-fault state. Each of these states has its own rules and what you can do after being in a car accident. It will also determine what the car insurance will do with your claim and if you can file a lawsuit

What Is a No-Fault State? 

No-fault states mean that everyone needs to file a claim with their insurance when there is an accident, no matter who caused the accident. Everyone should also have personal injury protection coverage as part of their auto insurance policy. 

The rules regarding auto accident lawsuits in no-fault states are often much stricter than in other states. They have threshold conditions that are important when it comes to filing claims and working with the insurance. 

In no-fault states, drivers are allowed to sue for severe injuries and pain, and other conditions when it comes to certain cases. The threshold relates to the severity of the injury. Sometimes it’s a monetary threshold that can cover medical bills and other expenses. 

It can also be a verbal threshold which is descriptive or verbal. Verbal thresholds are often harder to prove and many states have rules in place that only a certain amount can be claimed for these expenses. 

Fault states allow the person to sue or act against the person who is responsible for the damages caused by the accident. 

Differences Between the No-Fault States and the At-Fault States 

The main difference is that no-fault insurance pays for medical bills using the personal injury protection you are required to have as part of the car insurance guidelines. Property damages are based on who is responsible for the accident. 

At-fault states, on the other hand, have a tort liability system. This means the insurance company of the driver who caused the accident is responsible for the damage. 

At-fault state insurance is typically more expensive because of the extra coverage you are required to pay for. Even if you don’t cause the accident, you will be required to pay for the premiums and deductibles. 

There are 12 at-fault states. Each has different minimums and requirements, but you are always required to have personal injury protection coverage in them. The personal injury protection portion of the insurance will pay for deductibles, lost wages, funeral expenses, and medical expenses that exceed the coverage limits. 

Injured in a Car Accident? Get Assistance from a Lawyer 

If you have been in a car accident caused by someone’s negligence, consider partnering with a lawyer from Gibbs & Crivelli, Slingshot Law to help you navigate through the system. You can call us at 800-488-7840 or fill out our online contact form. 

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