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At Fault States vs. No-Fault States: What are the Differences? 

November 14, 2023
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Determining fault after a serious car accident is an essential part of recovering financial compensation for your injuries. Accident victims in some states, however, are not able to seek compensation based on fault and liability, which can have a substantial impact on your recovery.

Local Accident Reports works with affiliate personal injury law firms across the country that share our dedication and client-focused approach to personal injury cases. No matter where your accident took place, we can help. Call us today to schedule your free consultation with one of our nationwide car accident lawyers.

No-Fault v. Fault States

Every state in the country follows one of two systems regarding financial compensation:

  • No-fault-based systems: In these states, fault bears no significance in pursuing recovery; all injured parties must seek compensation through their own insurance.
  • Fault-based systems: This system allows injured parties to seek financial recovery from any at-fault parties involved in the accident.

Fault-based auto insurance laws are a lot more common in the United States than no-fault auto insurance laws. 38 states and Washington D.C. operate under the fault-based system, while only 12 states operate under no-fault laws. Of these 12 states, many have laws that are unique to them, so the details and insurance requirements vary widely from no-fault state to no-fault state.

It is essential to keep in mind that the laws governing fault and no-fault only apply to the process of recovering for damages resulting in physical injuries, like medical expenses. Persons seeking recovery for property damage that occurred due to a car accident will follow standard at-fault insurance procedures. 

Choice No-Fault States

At Fault States vs. No-Fault States: What are the Differences? 

Of the dozen states that follow no-fault insurance laws, three (Pennsylvania, Kentucky, and New Jersey) offer drivers a unique car insurance system known as “choice no-fault.” Under this configuration, drivers are given an option between a no-fault or fault auto insurance policy. Once they make their choice, they are locked into that option until their policy is up for re-enrollment or renewal.  

In Kentucky and New Jersey, if a driver fails to choose fault or no-fault, they will be automatically locked into a no-fault policy. However, in Pennsylvania, a fault-based policy is the default. 

No-Fault States and Personal Injury Protection Insurance

Since drivers in no-fault states have no choice but to look to their own auto insurance policy to obtain financial compensation, all no-fault policyholders are required to carry additional insurance known as personal injury protection. 

Basic liability insurance will only cover the hospital bills and expenses associated with the other party’s injuries in an accident. Personal injury protection insurance provides these drivers with an avenue for compensation after a car accident, whether or not they were at fault. After a car accident, contact a nationwide car accident attorney to discuss your options for recovering financial compensation.

Thresholds Allow No-Fault Drivers to Bring Lawsuits

Most people do not know that, in the United States, there are no pure no-fault states. In these states, a person injured in a car accident might still be eligible to bring a claim against the at-fault party, but only if they exceed specific limits or meet specific criteria. These limits are referred to as thresholds, and they are divided into two categories:

Verbal Thresholds

Otherwise known as a serious injury threshold, this degree of injury must be surpassed before a suit can be filed against the negligent party. Other common applicable terms include:

  • Injuries resulting in disfigurement or permanent disability disfigurement
  • Wrongful death
  • Catastrophic injuries

Every no-fault state has a verbal threshold, but only Michigan, Florida, Pennsylvania, New York, and New Jersey have strictly verbal thresholds.

Monetary Thresholds

Far more straightforward are monetary thresholds. This is the dollar amount for medical bills that must be met or exceeded before a lawsuit can be brought. These thresholds typically follow the state’s personal injury protection coverage limits, which are capped by the state.  

Seven no-fault states have both verbal and monetary thresholds: Kansas, Hawaii, Massachusetts, Kentucky, Utah, North Dakota, and Minnesota.

Figuring out which fault system governs the state where your accident occurred and how you can recover the financial compensation you need can be an overwhelming and very stressful experience, particularly if you are trying to do so while you are injured. Additional state-specific provisions can serve to complicate matters further, and seeking recovery within these predetermined parameters can be bewildering. Furthermore, even if a no-fault state does not fully prohibit injured plaintiffs from bringing personal injury lawsuits, the process for pursuing these types of claims is extremely complex and heavily scrutinized.

If you were injured in a serious traffic accident, you should seek qualified legal counsel to assist you with the claims process. An experienced car accident lawyer can help you address any concerns you may have about the steps you should take after an accident while also advising you on the best options for pursuing maximum compensation.  

Auto Insurance and Negligence

Unfortunately, it is not always immediately obvious which driver is responsible for a car accident. Some crashes are complicated, especially those involving multiple vehicles, and fault is not always clear. In scenarios where both drivers share liability, insurance companies usually look at the percentage of fault that was assigned to each driver.  

In the United States, negligence falls under one of three categories: modified comparative, pure comparative, and pure contributory. Each state has its own definition of negligence, meaning where the accident took place and the degree of liability you assume will both influence how your injury claim is handled.

How is Fault Determined in a Car Accident?

Determining who is at fault for an auto accident is not a simple task. All involved parties are required to provide pertinent details regarding what happened and when. Bystanders, should any have been present at the time of the crash, may partake in this process as well.

Once an insurance company is notified of an accident, they start investigating in order to determine who caused or contributed to the accident and by how much. After a decision has been reached, or liability for a multi-car accident has been apportioned, one or more insurance carriers will cover the costs of medical treatment for physical injuries as well as the cost of vehicle replacement or repair.  

Different drivers carrying different percentages of fault can add to the complexity. In many car accident cases, more than one driver is found liable for the collision. It is not beyond the realm of possibility that your insurer could agree to 70% of the damages, while the other insurer claims 30%. 

Talk to a Nationwide Car Accident Lawyer

Any kind of car accident can leave you worried and unsure of what to do. The situation can be even more stressful if you think you may have been at fault. In order to ensure you know and fully understand your rights and all potential avenues for financial recovery, it is essential to speak with a qualified car accident attorney as soon as possible. 

At Local Accident Reports, we understand where our clients are coming from and what they have been through. That is why we offer a free, no-obligation consultation to review your case and discuss your legal options. Call us to schedule your free consultation with one of our experienced nationwide car accident lawyers today. 

Note: These posts are created solely for the use of Local Accident Reports. We have not verified the information in these posts as the information is gathered from secondary sources. If you have personal knowledge that the information contained in these posts is inaccurate, please contact Local Accident Reports immediately so we can make the necessary corrections or remove the story.

Disclaimer: We are providing this information to the general public as a resource to use in the event you or a family member are injured in a similar incident. Every effort is put forth to honor the victims of accidents, and hope the information presented helps others avoid the same type of accidents in the future. The photos depicted in these posts are not representative of the actual accident scene. Please contact Local Accident Reports at (888) 657-1460 to be connected with an attorney in your area who will answer any legal questions you may have.

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Our thoughts are with everyone affected by this incident. If you or a loved one were injured in this accident, it’s important to speak with an attorney as soon as possible to protect your rights and explore your legal options.

The first step in moving forward is obtaining the official police report, which we can request on your behalf.

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At Local Accident Reports, we are committed to providing you with the resources and guidance you need after an accident. In addition to your free police report, you can schedule a free consultation with a personal injury attorney to learn more about pursuing compensation.If you have any questions about your legal rights, don’t hesitate to call. We’re here to help.
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What to Do Next After a Serious Accident

After a tragic accident, it’s natural to seek as much information as possible. However, online reports are based on third-party sources and may not always provide accurate details. The official police report taken at the scene is the only report that can offer verified information to help you move forward.

Option 1: Request an Official Police Report

If you were involved in a serious accident or are the surviving family member of someone who was, you have the right to obtain the official police report. This report contains critical details that may help with insurance claims, legal action, or understanding what happened.

Option 2: Get Support & Resources

Coping after a tragic accident can be overwhelming. Help is available. Our organization connects individuals and families with local support services, including grief counseling and assistance with financial hardships.

Option 3: Free Legal Case Review

If you or a loved one were injured in a serious accident, speaking with an attorney can help protect your rights and maximize your compensation. A free case review ensures you understand your legal options with no obligation.

Our thoughts are with everyone affected by this accident. If you need help, don’t hesitate to take the next step.