Most drivers have at least heard about “at-fault” and “no-fault” car wreck states. However, if you ask them about this notion, they might struggle when defining it. If you fall into this category of drivers, that’s okay. It’s a somewhat complicated concept.
Car accidents happen constantly all over the roads of America. That’s true in any state. For instance, Georgia saw about 400,000 car crashes in 2021, and the number usually stays that high, or close to it.
Because of how easily you might cause a car accident, or how easily another vehicle might strike you on your way to work or the grocery store, you should understand the at-fault versus no-fault concept, or at least the basics involved. We’ll discuss both in this article.
What Does an At-Fault State Mean?
If you live in a state that has accepted and implemented an at-fault car crash status, that basically means that if a car hits another vehicle, the motorist who caused the wreck should use their insurance policy to cover the damages. That includes damage to their own car, but also to the other vehicle. In most instances, their insurance should also cover the cost if the wreck damaged a storefront, traffic sign, highway barrier, etc.
If you live in an at-fault state, you must have a certain amount of insurance coverage to legally drive. This amount varies depending on the state in which you live.
For instance, in some states you might need to have at least $50,000 in coverage. You will use this coverage to pay for an accident that the police or investigators determine you caused.
Do You Really Need This Insurance?
If you do not have an insurance policy that covers this minimum amount, then you can’t legally drive, though some people still do it. Maybe they simply don’t care about the law, but in other instances, perhaps they feel like they need their vehicle to get to work, and they don’t have the money at the moment to pay for an adequate insurance policy.
If you’re in that situation, don’t drive. If you do, and you accidentally hit another vehicle or an inanimate object, the other driver can sue you.
In a case where you run off the road and into a storefront, the store’s owner can bring a civil lawsuit. If you damage property that the city or township owns, then they can sue you as well, and it’s virtually a certainty that they will win.
If you don’t have the money to cover the proper insurance policy, take public transportation instead of driving. You might also have a friend or relative drive you to work instead, or to anywhere else you feel you need to go.
You should also keep in mind that while you can have an insurance policy with the minimum legally required amount, you might also get a better policy that covers you for more than the minimum. That’s a smart move.
The policy will likely cost a bit more, but you’re indemnifying yourself. If you cause a wreck with lots of damage, a better policy will likely cover all of it, and you won’t have to pay anything out of pocket other than the deductible.
What About a No-Fault State?
Now, let’s talk about no-fault states. In a no-fault car accident state, it doesn’t matter who caused the accident if one occurs. Your insurance will pay for the vehicle damage sustained, while the other driver’s insurance will cover their vehicle damage.
Many states have this policy. In fact, at the moment, twelve states have it. That means that many more states have an at-fault policy than a no-fault one.
In such states, the insurance you must have falls into the PIP category. This means personal injury protection. For example, in New York State, you must have at least $50,000 in PIP protection to legally drive. Of course, you can also get a policy that is worth more if you want to play it safe.
Would You Consider an At-Fault or No-Fault State Better?
You might logically ask at this point whether fault or no-fault policies work better. That is a subjective question, though.
You can’t really say one policy works better or one works worse. Both states that have at-fault and no-fault policies seem to function fine. It’s proof that either system has some validity.
You might like the idea of at-fault or no-fault insurance better as a motorist. In reality, though, very few people care about this concept enough that they will decide to move to a state or leave one because of this policy. They simply try to buy enough insurance and obey all applicable traffic laws.
There’s not much of a difference from a practical standpoint between at-fault and no-fault states, at least as a motorist. You’ll presumably try to avoid accidents regardless.
You need to know the policies that your state has in place, though, not just regarding fault or no-fault, but also with how much minimum coverage you should have. Without that amount in place, you’re putting yourself in a precarious position every time you get behind the wheel.
In time, maybe more states will adopt one policy more than the other. Most of them probably won’t change anytime soon, though.
Different states have their own opinions about how their citizens should conduct themselves, and most people think that is a positive. It’s when you start trying to homogenize laws in every state that some people begin getting upset, and that’s true with everything from gun laws to car insurance.
Once you know whether your state falls into the fault or no-fault category and you have the right amount of insurance in place, you can drive with confidence. If you cause an accident or another driver hits you, you’ll know what you can expect regarding whose insurance you must contact to cover the damages. When in doubt, though, you can always contact a lawyer.
