When it comes to car accidents, assigning blame is often a crucial part of the process. You need to understand who is responsible.

In most states, if you can prove that the other driver was at fault, then they’ll pay for the damages. 

But in a no-fault state, things operate a bit differently. That’s why understanding the nuances of car damage liability in such states becomes essential. This article sheds light on how it affects liability for all parties involved.

Short Answer:  In a no fault state, the at-fault driver pays for car damages through their insurance company.


What is No-Fault Insurance?


In the United States, no-fault insurance means that each driver is responsible for paying their own medical bills through their insurance, regardless of who caused the accident

This system requires an additional layer of protection known as Personal Injury Protection (PIP) insurance. It makes it a bit more expensive compared to at-fault insurance states.

The primary objective of no-fault insurance is to alleviate the burden on courts by reducing the number of personal injury lawsuits. When all drivers are required to carry PIP coverage, they are less likely to pursue damages from the other party involved in the accident.

This insurance covers:

  • Medical bills
  • Lost wages
  • Essential services like housekeeping, transportation, and childcare
  • Out-of-pocket expenses
  • Funeral expenses

But it’s not really perfect for everyone. According to Consumer Reports, several people suggest no-fault insurance could lead to higher premiums and less caution on the road. What do you think?


Fault Vs No-Fault States: An Overview

Fault Vs No Fault States

In the US, states can be categorized into two main types based on insurance laws: 

  • Fault states (also known as tort states)
  • No-fault states. 

The distinction between fault and no-fault states lies in how liability is assigned for car accidents. 

In fault states, the at-fault driver is held responsible for paying both medical and vehicle repair costs for the injured party. Such states utilize bodily injury liability insurance and property damage liability insurance instead of PIP.

On the other hand, no-fault states require each driver to pay for their medical expenses through PIP coverage. The at-fault driver may still pay for car damages.

While this reduces the likelihood of personal injury lawsuits, it raises questions about who pays for car damage in a no-fault state. But don’t worry because we are addressing this right here.

Here are the 12 US states with no-fault auto insurance laws:

  • New York
  • Pennsylvania
  • Massachusetts
  • Hawaii
  • Kentucky
  • Minnesota
  • Michigan
  • Kansas
  • New Jersey
  • Utah
  • Florida
  • North Dakota


Car Damage Coverage in No-Fault States


So, who pays for car damage in a no fault state? Since no-fault insurance only applies to bodily injuries, the driver who caused the accident remains responsible for damaging the other driver’s property.

There are three main ways to get your car repaired in a no-fault state:

  • Using Collision Coverage or Comprehensive Coverage: Depending on the nature of the damage, you can make a claim with your insurance provider through either your collision or comprehensive policy.
  • Using the At-Fault Driver’s Auto Insurance Policy: If the other driver is determined to be at fault for the accident, you can use their insurance policy to cover your car repairs.
  • Resolving Disputes Through Lawsuits: In cases of coverage or liability disputes, you may need to file a lawsuit. This option is more complex, and it’s wise to seek legal assistance to navigate the process effectively.


When and How to Make a Law Suit in No-Fault States


Contrary to popular belief, it is possible to sue in a no-fault state. However, the circumstances under which you can do so are limited. 

No-fault insurance places a cap on coverage, and there are specific situations where suing the at-fault driver becomes necessary. These are:

  • Exceeding PIP Coverage: If your medical expenses or lost wages surpass the maximum coverage provided by your PIP insurance, you may sue the at-fault driver to recover the difference.
  • Meeting Injury Thresholds: Some no-fault states have injury thresholds. So, you can sue for additional damages if your injuries meet certain severity criteria.

In scenarios where third parties played a role in the accident, such as a faulty repair by an auto shop or poorly maintained road infrastructure, you might have grounds to sue them as well.


Claiming Damages in a No-Fault State

Medical injusry claim form

If you find yourself in an accident in a no-fault state, the process of claiming damages is similar to that of at-fault states. But there’s one significant difference – you won’t have to deal with the other driver’s insurance company

Here’s how the process typically unfolds:

  • Notify Your Insurance Company: Contact your insurance provider to inform them that you were injured in an accident.
  • Speak with an Adjuster: An insurance adjuster from your company will get in touch with you to discuss the details of your claim.
  • Provide Medical Records: Provide relevant medical records to support your claim for injuries.
  • Submit Expenses: Keep track of all expenses related to your injury, including medical bills and out-of-pocket costs.
  • Negotiate: You’ll need to negotiate with your own insurance company for payment of medical bills and reimbursement for lost wages.

If the other driver was driving under the influence of alcohol or drugs, your insurance company may be able to subrogate (recover) the costs of your claim from the other driver’s insurance company.

Note: Personal injury protection insurance generally excludes damages related to pain and suffering, which means you won’t be able to claim compensation for emotional distress or inconvenience.

Tip: If you are involved in an accident in a no-fault state, get the names, addresses, and insurance information of the other drivers involved in the accident. You should also take pictures of the damage to your vehicle and the accident scene.


Final Thoughts


No-fault insurance aims to simplify the claims process. However, it’s crucial to know its limitations and how it affects your ability to seek compensation for property damage. 

Know the nuances of negligence and the circumstances under which you can sue in a no-fault state. This will empower you to protect your rights after an accident. 

Stay informed, stay safe, and make informed decisions to navigate the complex world of car accident claims effectively.


FAQs About Car Damage Liability in No-Fault States


What is no-fault insurance?

No-fault insurance is a type of car insurance that pays for your medical expenses and lost wages, regardless of who is at fault in the accident.

What does no-fault insurance cover?

Your medical expenses, lost wages, and other expenses related to an accident, regardless of who is at fault. This includes ambulance rides, hospital stays, doctor’s visits, and prescription drugs. 

In some states, no-fault insurance may also cover the cost of essential services, such as child care, housekeeping, and transportation, if you are unable to perform these tasks yourself because of your injuries.

What does no-fault insurance not cover?

No-fault insurance does not cover property damage to your vehicle or other vehicles or property. It also does not cover pain and suffering, which is a type of non-economic damage.

If you are injured in an accident, you may be able to sue the other driver for pain and suffering, but you will need to file a personal injury lawsuit.

Does insurance cover things that are your fault?

In tort states, your liability insurance covers bodily injuries and property damage if the accident was your fault. In no-fault states, each driver’s PIP insurance covers their own injuries, regardless of fault.

What are the benefits of no-fault insurance?

No-fault insurance can help you get the compensation you need quickly and easily after an accident. It can also help reduce the number of lawsuits filed after car accidents.

What are the drawbacks of no-fault insurance?

No-fault insurance can be more expensive than traditional liability insurance. It may not cover all of your expenses after an accident. It may also limit your ability to sue the other driver for pain and suffering.