If you are injured in a car accident, you will likely be filing a claim with an insurance company. Whether you file a claim with your own insurance or the other driver’s insurance may depend on whether your state follows a no-fault or at-fault insurance system. California is an at-fault state for auto insurance, so keep reading below to learn the details of each and the differences between the two.
What Is No-Fault Insurance?
In no-fault insurance states, drivers are required to carry personal injury protection (PIP) coverage. This no-fault insurance pays for your injury-related medical expenses and lost wages. If you are hurt in a car accident, you would file a claim with your own PIP coverage. In many no-fault states, you do not have a right to sue the other driver for your damages unless your accident meets certain conditions.
Twelve states follow no-fault systems, including:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
Additionally, New Jersey and Kentucky are “choice” no-fault states. This means that drivers can choose between a no-fault or an at-fault policy.
Pros of No-Fault Insurance
No-fault insurance does offer some advantages. First, it may help keep insurance costs lower by discouraging fraudulent claims and keeping many claims out of court. Instead of suing another driver for claims involving small financial losses, a driver simply files a claim with their own insurance coverage.
Additionally, victims typically receive compensation for their claim much faster. This is because there is no need to prove fault or liability.
Cons of No-Fault Insurance
Although no-fault insurance systems may have some benefits, there are also some major drawbacks to these systems.
First, no-fault insurance does not automatically cover pain and suffering. Many victims suffer extreme pain and suffering due to their injuries, and no-fault insurance does not cover these damages.
Additionally, you might not be allowed to sue the other driver even if they were at fault for the accident. In order to sue, your injuries must be severe, or your medical bills might need to meet a minimum dollar amount threshold.
What Is At-Fault Insurance?
At-fault insurance is the system followed in most states, including California. These systems are based on tort liability. This means that drivers are financially responsible for any damage they cause, including both property damage and injuries. After an accident, drivers have the right to sue the driver who caused their injuries.
Pros of At-Fault Insurance
In at-fault insurance systems, drivers are required to carry injury liability insurance. This insurance coverage pays for damages that you cause, including both economic damages and non-economic damages. Additionally, you retain the right to sue the at-fault driver for your injuries if their insurance coverage is inadequate.
Victims may recover damages, including:
- Medical bills
- Lost wages
- Lost benefits
- Pain and suffering
- Mental anguish or emotional distress
- Depression
- Anxiety
- PTSD
- Loss of consortium
- Diminished quality of life
This highlights one of the biggest benefits of at-fault, or fault-based, systems. These systems allow victims to recover financial compensation for all their damages.
Cons of At-Fault Insurance
However, a drawback of at-fault systems is that they can cause victims to wait longer to get compensated for their damages. This is because fault or liability must first be proven. This generally requires proving the four elements of negligence:
- Duty of care
- Breach of duty
- Causation
- Damages
Insurance costs in these states may also be higher due to the number of claims that end up in court. Some car accident claims may drag on for months or even years in some cases as they work their way through the legal process.
Additional Coverage Options in At-Fault States Like California
California does not provide or require no‑fault PIP coverage. However, you can choose to add Medical Payments (MedPay) coverage to your auto policy. MedPay helps pay reasonable medical and funeral expenses after an accident — regardless of who was at fault.
Note that MedPay won’t cover lost wages, property damage, or non‑medical damages like pain and suffering. The amount of MedPay available depends on your policy limits and whether your insurer offers it.
Contact Pines Salomon Personal Injury Lawyers for a Free Consultation With a San Diego Car Accident Attorney
Understanding the insurance laws in California after a car accident is crucial to getting all the compensation to which you are entitled. If you have been hurt in an accident in San Diego, the experienced team at Pines Salomon Personal Injury Lawyers can help you.
Call us today to schedule a free consultation with a San Diego car accident lawyer.
