No-Fault Insurance and Its Impact on Personal Injury Claims
Being involved in a car accident is stressful enough without worrying about who to file an insurance claim with. Do you file a claim with your insurance provider or contact the at-fault driver’s carrier? The answer typically depends on state law and yes, it varies.
Some states follow at-fault laws, while others have no-fault rules. So what are the legal considerations in states with no-fault insurance? Knowing what the considerations are can have a huge impact on your personal injury case.
What are No-Fault Accidents
The term no-fault accident doesn’t make any sense at face value. After all, someone is responsible for your accident. Even if it’s another entity like whoever is responsible for road maintenance, car accidents don’t simply just happen. It’s less of a literal term and more of a legal term concerning automobiles and liability.
Instead of filing a claim with the at-fault driver’s insurance, you contact your provider. The goal of this rule is to reduce the number of auto accidents. The understanding is drivers will be more cautious when they’re made to file claims with their insurance provider.
Another goal of no-fault insurance is to speed up the general claims process and reduce the number of personal injury lawsuits. Since you’re not dealing with another driver’s insurance company, you should be able to quickly file a claim and receive compensation without taking your case to civil court. Your car insurance policy should cover your medical expenses, property damage costs, and even lost income.
However, there are limits on the amount of compensation you can receive. You’re limited by the caps in place in your policy. If your expenses exceed the policy cap, you may be responsible for paying some of the damages out of your pocket.
Personal injury protection (PIP) is also a requirement in most no-fault insurance states. PIP often covers 100% or close to the total economic damages you sustain in a vehicle accident. However, PIP also has limits that can affect your settlement amounts.
Understanding Comparative Negligence
South Carolina and a few other no-fault insurance states also have comparative negligence rules. Sometimes, you may appreciate comparative negligence since it can benefit your personal injury case. What is comparative negligence?
Basically, comparative negligence means you may be able to file for compensation even if you’re partially responsible for the car accident. However, you can’t be assigned more than 50% of the blame. Don’t think you can receive full compensation for your damages if you're partially at fault.
Your compensation amount will be reduced by your percentage of the blame. For example, if you’re 25% at fault and are awarded $100,000 in damages. You’ll only receive $75,000.
If you’re assigned 51% of the blame, you’re probably ineligible to receive compensation. Yes, your insurance company is paying attention to who’s at fault for the accident. In fact, your insurance provider may be part of the process of determining blame. A judge and jury can also assign blame, and your insurance company will know.
Trying to file a claim when you’re over 50% responsible for the accident is considered fraud and may come with legal penalties. If nothing else, you risk being dropped by your insurance provider.
Tips on Filing a No-Fault Accident Claim
The steps for filling a no-fault accident claim are pretty simple. You start by contacting your insurance company. You’ll get a case number and an adjuster. The role of the adjuster is to verify the details of the claim and work out a settlement offer.
You’ll want to stick to the basic accident details, which include the date, time, and location of the accident. If you happen to have contact information for any witnesses, go ahead and share these details with the adjuster. Your insurance company will want to speak with any witnesses and get their statements.
If the insurance adjuster wants to record your conversations, politely decline. Yes, legally, the adjuster must ask for and receive your permission to record your conversations. Why don’t you want anything you say recorded? Your statements, even off-handed ones, can be used against you, and this means receiving a lower settlement offer.
A good rule to follow is to limit your conversations with an insurance adjuster unless your accident attorney is present. Just stick to the basic details necessary to get the claims process moving along.
No-Fault Insurance Damages You Can Claim
You may have both economic and non-economic damages, which is common in most car accident claims. However, you’re dealing with at-fault and PIP insurance, so forget about your non-economic damages for now.
No-fault insurance states do provide compensation for non-economic damages, you’ll just use a different claims process. So, what can you claim under your no-fault policy?
Medical Expenses
Even if you don’t think your car wreck resulted in any injuries, it’s still a good idea to make an appointment with a medical professional. Some injuries may not exhibit signs and symptoms for a few days. You don’t want to start the claims process only to learn you’re also going to have medical expenses.
Your PIP insurance typically covers the medical expenses for you and your passengers, but there are caps. If PIP doesn’t cover all of your medical costs you may need to turn to your health insurance policy.
Lost Wages
If your injuries from the vehicle accident are preventing you from returning to work, you should be able to claim your lost wages. This can also apply to your passengers if their injuries are keeping them out of work.
PIP also takes care of this damage, and yes, once again, there are caps. Unfortunately, your health insurance isn’t going to cover lost wages, so you may be out of luck.
Vehicle Repair and Replacement
Expenses relating to repairing your vehicle or replacing it are also covered under your auto insurance policy. However, caps can apply and it may not cover all costs.
Talk to an Attorney About Your No-Fault Insurance Claim
No-fault insurance systems, with their unique rules and procedures, can indeed be complex and challenging to navigate, especially in the aftermath of an accident. Consulting with an experienced accident attorney can be extremely beneficial in these situations.
These attorneys will have a deep understanding of no-fault insurance laws and how they apply to your specific case. They can help clarify your rights and entitlements under this system, ensuring that you make informed decisions.
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