What Happens When You Are In A Car Accident In A No-Fault State

The following 12 states recognize a no-fault system when it comes to car accidents as opposed to an at-fault system where the driver responsible for an accident bears the primary responsibility for costs.

Typically, lawsuits can be brought for economic and non-economic damages that exceed the insurance coverage when a serious injury is suffered.

Living in a no-fault insurance state can really add up when it comes to your insurance coverage; you need to get extra coverages like PIP and UM/UIM, which could end up costing you more in premiums.

If you live in a no-fault state like Florida, PIP insurance, also referred to as “no-fault insurance,” is required. Even in some at-fault (tort) states, you're required to have at least the minimum amount of coverage, as per insurance laws and regulations.

This type of insurance also provides limited compensations for medical bills, lost wages, and essential services you or your passengers are unable to perform due to accident-related injury.

As part of the no-fault system, PIP limits your ability to sue the at-fault driver for any bodily injuries, pain and suffering, or any other non-economic damages unless they break what is known as the 'serious injury threshold'.

When it comes to personal injuries sustained in an auto accident, unless they break the serious injury threshold, they’re paid out by your own insurance company. Each driver files a claim with their own insurance coverage regardless of who was responsible. PIP coverage compensations are usually limited, which means that you’ll have to pay for a portion of your medical expenses out of your own pocket.

However, if the injuries sustained break the serious injury threshold (such as fractures, severe lacerations, burns, dismemberment, significant disfigurement, or death) you have legal grounds to make claims against the at-fault driver’s insurance company for full coverage of all medical costs and other expenses resulted from the crash.

Typically property damages are different, as they’re not covered by no-fault insurance companies. Instead, you’ll need collision coverage so that you can seek compensation from the at-fault party for property damage. Some states require you to carry uninsured or underinsured motorist coverage, which protects you if you’re involved in a motor vehicle accident with a driver whose coverage can’t cover your damages.

Knowing which steps to take and how to file a PIP claim after a car accident in a no-fault state is essential to ensure a successful outcome. Generally, there are some useful guidelines that you should follow, regardless of the specific state and the insurance company involved.

As a first step, ensure your own safety and the safety of those involved in a car accident, such as a rear end accident, and call emergency services. Call the police and inform them about the accident so that they can make a police report to document the accident. Make sure to obtain a copy of the report, as this may prove beneficial for the claims process.

Be sure to exchange insurance information and other details with other drivers involved in an accident, like their name, contact info, insurance credentials, and license plate number. It’s a good idea to take pictures of the accident scene, any damage done to the vehicle, and any associated injuries. These photos may be key in helping you make your case.

Always seek medical care from a healthcare professional if your collision was strong enough to bend metal.

When filing a PIP claim, contact your insurance company. They’ll provide you with all the necessary claim forms and guide you through the rest of the process. Just make sure to have your auto insurance policy number and other relevant documents at hand.

Making a claim can potentially increase your car insurance premium depending on whether you’re at fault in a car accident or not. If you’re at fault for the accident, your insurance premium is likely to go up significantly.

Not-at-fault claims have a significantly reduced impact, if any impact at all, on your insurance premium. Some insurance companies even offer accident forgiveness programs that prevent your premium from increasing following your first at-fault accident.

The exact amount by which your car insurance premium increases following a claim is very difficult to predict, as it depends on your insurance provider. However, you should expect it to go up.

If you don't let your insurance company know about an accident and then try to make a first-party claim on your policy, your claim could be rejected. Not giving the proper notice could mean your insurer won't have any obligation to cover the harm or injuries caused by the car accident.

If a third party brings a claim against you and your insurance company isn't informed, you could be personally responsible for the other person's losses. This means you'll have to cover the medical expenses and property damages out of your own pocket if you’re found guilty of causing an accident.

Likewise, if you’re not at fault, you should still report the incident to your insurance company. Otherwise, the company might terminate your contract due to breach, thus putting you at risk of losing any legal protection provided by your policy’s liability coverage.

Experiencing a car accident is an incredibly frightening and overwhelming experience, whether in a no-fault or at-fault state. If you have been involved in a serious car accident involving injury and you have questions about the insurance claims process with your own insurance company or that of the at-fault driver, consult with our car accident attorneys immediately. They can help answer your questions about compensation and legal options specific to your situation. Get the help you need so that you can focus on recovery.