Auto Insurance 20/80: Is It A Good Deal?

An 80/20 auto insurance settlement is a common agreement in car accidents where blame is shared between two drivers. In this scenario, one driver is deemed 80% at fault and covers 80% of the damages, while the other driver is deemed 20% at fault and responsible for the remaining costs. This type of settlement can be attractive as it lessens the financial burden on both drivers and insurance carriers, and can speed up the settlement process. However, it is important to be cautious of insurance companies pushing for an 80/20 claim as it may be in their interest to reduce costs, especially if the other driver doesn't have insurance.

80/20 settlements are common in car insurance

An 80/20 auto insurance settlement is a common arrangement where the blame for a car accident is shared between two drivers, with one driver considered 80% at fault and the other 20% at fault. This type of settlement is often used when the circumstances of the accident are not clear-cut, and both drivers may share some responsibility. For example, in a rear-end collision, the driver in the back is usually at fault for driving too fast, not leaving enough room, or not paying attention. However, if the person in front stops suddenly or has just been rear-ended themselves, they may also bear some responsibility for the accident. In such cases, an 80/20 settlement can be reached, apportioning the majority of the blame to one driver while still acknowledging the role of the other driver in causing the accident.

There are several advantages to 80/20 car insurance settlements. Firstly, they can reduce the financial burden on both insurance carriers and drivers by sharing the cost of the accident. This is especially beneficial if one of the drivers involved is uninsured or underinsured, as it prevents a single carrier from bearing the full cost. Secondly, 80/20 settlements can expedite the claims process as both parties agree on the monetary value of the claim, eliminating the need for lengthy negotiations or court proceedings. This also helps maintain privacy and prevents the claim from becoming a public legal battle that involves multiple parties.

However, there are also some drawbacks to 80/20 settlements. One significant concern is the potential impact on compensation for injuries with delayed symptoms, such as whiplash or back pain, which may not manifest until weeks after the accident. By settling for a lower percentage of fault, individuals may inadvertently limit their ability to claim fair compensation for these types of injuries. Additionally, there is a risk of insurance companies taking advantage of the situation, particularly when one driver is uninsured. In these cases, the insured driver may be pressured into accepting an 80/20 settlement that unfairly assigns them a higher level of blame to reduce the insurance company's payout.

It is important to carefully consider the circumstances of the accident and seek legal advice if necessary before agreeing to an 80/20 settlement. While these settlements are common and can offer a quicker resolution, it is crucial to ensure that your rights and interests are protected, especially if you believe you were not at fault for the accident.

The driver at fault pays 80% of the damages

An 80/20 auto insurance settlement is when the fault for an auto accident is split 80/20 between its two drivers, according to an insurance settlement. This means that the driver at fault pays 80% of the damages, while the other driver's car insurance company pays 20%.

In most collisions, responsibility is shared between the drivers, typically on an 80/20 basis. Although the other driver may share some blame for the accident, they are still considered primarily responsible (80%). The 80/20 rule can be applied when one car rear-ends another. While it is usually the fault of the driver in the rear, the person in front may also be considered at fault if they stopped suddenly or had just been in a collision themselves.

There are several advantages to an 80/20 settlement. Firstly, it can reduce the financial burden of an accident for both drivers and insurance carriers. It also ensures that no single insurance carrier is left covering the entire cost if one of the parties involved is uninsured. Additionally, the settlement process can be faster, as both parties agree on the monetary value of the claim, and there is no need for further discussions or court proceedings. An 80/20 settlement also provides more flexibility to pay for related expenses, such as medical bills, and leaves more money left over after costs are covered.

However, there are also some drawbacks to consider. For example, some injuries may not present symptoms immediately, and settling for 20% could be a mistake if more severe health issues arise later. Additionally, if one driver is underinsured or uninsured, the other driver may try to force an 80/20 agreement, even if the level of culpability is ambiguous, to extract the most money possible.

The other driver pays the remaining 20%

An 80/20 auto insurance settlement is when blame is shared between two drivers, with the driver who is mostly at fault covering 80% of the damages, and the other driver paying the remaining 20%. This type of settlement is common when both drivers are somewhat responsible for the accident, though perhaps not equally so.

For example, let's say Driver A stops abruptly and Driver B runs into the back of them. While Driver B is mostly at fault for driving too fast or too close to Driver A, Driver A's actions also played a role in the accident. In this case, the insurance companies may decide on an 80/20 settlement, with Driver B's insurance paying 80% of the compensation and Driver A's insurance paying the remaining 20%.

It's important to note that the fault can also be split in other ratios, such as 50/50, 70/30, or 90/10, depending on the specific circumstances of the accident. The proper proportion will be settled between insurance representatives.

While 80/20 settlements can have advantages, such as speeding up the settlement process and reducing the financial burden on both drivers, there are also drawbacks to consider. For example, some injuries may not present symptoms until later, and agreeing to an 80/20 settlement could be a mistake if you end up with severe whiplash or other complications.

Additionally, it's important to be wary of insurance companies pushing for an 80/20 settlement when you were not at fault for the accident. In these cases, consider hiring a lawyer to ensure you are treated fairly and receive the compensation you deserve.

It's a quick way to resolve a claim

An 80/20 auto insurance settlement is a quick way to resolve a claim as it streamlines the settlement process. This is because both parties understand the monetary value of the claim, and there are no further discussions or arguments over who pays what. The settlement also gives more leeway to pay for related expenses, such as medical bills, that arise from the injury case.

In an 80/20 auto insurance settlement, the blame is shared between two drivers, with the driver who is mostly at fault covering 80% of the damages, and the other driver, who is less at fault, covering the remaining 20%. This type of settlement is common when one driver is predominantly at fault, but the other driver also shares some responsibility.

For example, in a rear-end collision, the driver in the rear is usually at fault for driving too fast, not giving enough room, or not paying attention. However, if the person in front stops suddenly or rear-ends someone else, an 80/20 settlement can be reached, where one driver is 80% at fault and the other is 20% at fault.

Another example is a T-bone accident at an intersection. If Driver A makes an unsafe left turn in front of Driver B, who is speeding, both drivers share blame for the accident. In this case, Driver B, who collided with Driver A, is mostly at fault (80%), while Driver A is also partially at fault (20%) for making an unsafe turn.

It's important to note that insurance companies may also use other ratios, such as 90/10, 70/30, or 60/40, depending on the circumstances of the accident and the level of fault assigned to each driver.

The 80/20 auto insurance settlement can also help avoid a legal compromise. Most vehicle insurance claims are resolved amicably, without the need to go to court. The two parties can meet with the adjuster, assess the damage, and agree on a settlement amount. This process is generally quicker and less tedious than pursuing legal action.

But it may not be in your best interest to accept it

An 80/20 auto insurance settlement is when blame is shared between two drivers, with the driver who is mostly at fault covering 80% of the damages, and the other driver accepting 20% of the blame. This type of settlement is common when both drivers are somewhat responsible for the accident, though perhaps not equally so. For example, a rear-end collision is usually the fault of the driver in the rear, but what if the person in front stops suddenly or has just been rear-ended themselves? In such cases, an 80/20 settlement can be reached.

There are attractive elements to 80/20 car insurance settlements. They can lessen the financial burden of an accident for both drivers and insurance carriers. If one of the parties involved doesn't have insurance, it also means the other driver's insurance carrier isn't left on the hook for the entire cost of the accident. The settlement process can also proceed more quickly, as both parties understand the monetary value of the claim, and there will be no further arguments over who should pay what.

However, it may not be in your best interest to accept an 80/20 settlement. There are several drawbacks to this type of settlement. For one, some injuries take a while to present their symptoms; deciding to settle for 80% or 20% of the blame could be a mistake if you develop severe whiplash or back pain a few weeks down the line.

Additionally, if the other driver doesn't have full insurance (or any insurance at all), they may try to force you into an 80/20 agreement, even if the level of culpability is more ambiguous. In this case, the underinsured driver has no insurance carrier to fight for them, so the other party can try to extract the most money possible.

Furthermore, agreeing to an 80/20 settlement can play an essential role in the compensation you receive, both today and in the future. It could reduce your ultimate payout from the insurance company and make it more challenging to claim for whiplash and other damages. Many states have proportional comparative fault laws, which state that you cannot file a lawsuit against another driver if you were more than 50% or 51% at fault for the accident. If you accept an 80/20 settlement, you may not be able to file a lawsuit against the other driver, even if you were only slightly at fault.

In some states, you also cannot claim any compensation after an accident if you are assigned any blame. Therefore, if you were not at fault for the accident in any way, you should not accept any blame, and push back if a claims adjuster tries to force an 80/20 settlement on you. Consider hiring a lawyer if the insurance company continues to insist on an 80/20 settlement without merit.

Frequently asked questions