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Car insurance laws are often confusing. Drivers often know that state law requires insurance coverage, but they may not know to what extent or how they could apply following an accident. In fact, the majority of drivers buy the policies their insurance companies recommend and give little thought to the matter after the fact. While a working knowledge of insurance law isn’t essential for drivers, understanding the basics of no-fault vs. fault car insurance can be helpful.
The Two Types Of Insurance Models
Two main models of insurance law will affect an accident claim. Some states follow a no-fault approach, while others observe traditional fault laws. The two have notable differences.
No-Fault States
Some states follow no-fault laws when it comes to pursuing compensation following a car accident. This works the way it sounds. When a car accident occurs, drivers file claims with their own insurance policies, regardless of who is at fault for the accident.
At least regarding minor accidents, no-fault insurance does not consider who is at fault for an accident when paying out claims. They simply pay claimants in accordance with the policy’s terms. In no-fault states, the insurance companies automatically pay all medical bills using personal injury protection. On the other hand, property damage claims still rely on the idea of fault.
In some cases, victims of serious injuries may step outside of the no-fault system and file a claim against an at-fault driver for damages. The rules on this vary from state to state, but generally, an injury must be severe enough to justify a claim against another driver.
Some states switched to no-fault models to shorten the time for a payout. They argue that instead of spending time in court trying to settle fault arguments, drivers can file a claim and focus on their well-being after an incident. Currently, 12 no-fault states exist: Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah.
Fault States
The rest of the United States follows a traditional fault model when it comes to collisions, though the details may vary from state to state. Fault states follow a tort liability system, which means that when a driver causes a crash, his or her insurance company will be responsible for all damages incurred in the accident. Examples include medical bills, lost wages, property damage, and intangible losses like pain and suffering. California, like much of the nation, follows a traditional fault model when it comes to insurance.
States vary, however, when it comes to rules involving comparative negligence. Under the rule of comparative negligence, a driver may have a car accident claim reduced by the percentage of fault he or she shares. For example, if a jury determines that a claimant is 30% at fault for an accident and he or she seeks $500,000 in damages, he or she could only collect $350,000.
In some states, such as Maryland, a victim may not be able to pursue damages if they are partially at fault for an accident. However, California follows a pure comparative negligence rule. This means a driver may have a car accident claim reduced by the percentage of fault they share, but is not barred from seeking compensation if they are up to 99% at fault. Accident lawyers often review fault laws in each state to determine how negligence may affect a client’s recovery.
Insurance rules vary greatly from state to state, but car accidents fall into one of these two categories. California follows a traditional fault model for car accident claims, which makes it easier for victims to pursue compensation for their injuries, pain and suffering, and other losses. The main disadvantage to this system is court costs and extended timelines when settlements can’t be reached during negotiations with an insurance company, but a personal injury attorney can help manage the process.
Call An Experienced California Car Accident Lawyer For Your Insurance Claim
If you incur injuries or property damage in a California car accident, the state’s fault system will apply. You may thus receive initial settlement offers from insurance companies shortly after a crash. Arash Law’s experienced car accident lawyers can help you assess your losses and review these offers so you can decide how to respond to them.
If you choose to counter, our firm has a team of injury attorneys who handle negotiations with car insurance companies. Our personal injury attorneys understand how insurers evaluate claims and can use that knowledge to help advocate for your rights. Call us at (888) 488-1391 for a free initial consultation with one of our car accident attorneys to discuss your case.
