Liability Quandary: Driver, Injury, And Insurance

When a driver causes an accident that injures another person, they are legally liable for the losses. In the US, drivers must have some way to pay for the damages they cause, and they do this by carrying liability insurance coverage on their vehicles. In most states, the at-fault party must cover the injuries of the other driver and their passengers, usually via their liability insurance coverage. However, in some states, known as 'no-fault' states,, medical bills are covered by each driver's individual personal injury protection coverage instead of the at-fault driver's insurance.

Liability insurance coverage limits

In the context of auto insurance, liability insurance coverage limits are typically shown as three separate numbers. For example, in Texas, the minimum liability coverage is $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident, or 30/60/25. In Illinois, the minimum liability coverage is $25,000 per person and $50,000 per accident for bodily injury liability, and $20,000 for property damage liability, or 25/50/20.

The liability coverage limits on car insurance can be increased to better protect your assets if you are responsible for someone else's injuries or damaged property. For example, you may choose coverage limits of $50,000/$100,000/$30,000, which would cover up to $50,000 for bodily injuries per person, $100,000 total for bodily injuries per accident, and $30,000 for property damage per accident.

It is important to note that liability insurance coverage limits may vary depending on the state and the individual insurance company. When shopping for insurance, it is advisable to compare different policies to find the one that best meets your needs and budget.

Comparative negligence laws

In the US, drivers are legally required to have some means of paying for any damages they cause. Most drivers comply with this requirement by purchasing liability auto insurance. If a driver causes a car accident that injures another person, they are legally liable for those injuries and any resulting costs.

When an accident occurs, one party is usually considered "at-fault" and must cover the injuries of the other driver and their passengers, typically via their liability insurance coverage. However, in some cases, both parties may be deemed at fault, and this is where comparative negligence laws come into play.

There are three types of comparative negligence rules followed within different jurisdictions in the United States:

• Pure comparative negligence rule: This rule allows the plaintiff to recover damages even if they are assigned 99% fault for the accident.
• Modified comparative fault model with a 50% bar rule: In states following this rule, a party that is 50% or more responsible for an accident may not recover any damages.
• Modified comparative fault model with a 51% bar rule: In states adhering to this rule, a party may not recover if they are 51% at fault.

For example, suppose two drivers, Abby and Brian, are involved in an accident. Abby was approaching an intersection and intended to turn left. Without exercising reasonable care, she proceeded. Meanwhile, Brian was approaching the same intersection while traveling 20 miles per hour over the speed limit. Unable to stop in time, he collided with Abby's car, causing personal injury and property damage. In this scenario, both parties have breached their duty of care and share some of the fault. Abby's negligence contributed to the accident by 30%, while Brian's negligence contributed by 70%. If the jury agrees that damages for Abby's injuries are worth $100,000, she would only be able to recover $70,000 (the total damages reduced by the 30% caused by her own negligence).

It's important to note that the process of determining fault and assigning blame can be complex, and it's always recommended to seek legal advice from a skilled attorney or personal injury lawyer.

No-fault states

In the US, most states follow the at-fault system, where the driver who caused the accident is legally liable for the losses and must pay for the harm they caused to the victims. However, some states, known as "no-fault" states, have a different system in place.

In no-fault states, any injuries suffered in an accident are covered by each driver's own insurance policy, regardless of who is at fault. This is known as Personal Injury Protection (PIP) coverage. In these states, drivers are required by law to file a claim with their own insurance company, and their insurance company will cover their damages and medical bills. This system is designed to streamline the claims process and reduce the number of lawsuits, but it does limit the ability to sue for pain and suffering. However, no-fault states may allow drivers who suffer severe injuries to sue the at-fault driver under certain conditions.

There are currently 12 no-fault states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. Kentucky, New Jersey, and Pennsylvania are known as "choice no-fault" states, where drivers can choose whether to follow the no-fault system or a traditional at-fault system.

It is important to note that even in no-fault states, the at-fault driver is still responsible for paying for damage to the other driver's vehicle and property. Additionally, drivers in no-fault states are still required to carry liability insurance coverage to cover these costs.

Personal injury protection coverage

In the US, drivers must have some way to pay for the damages they cause. Most states are considered )"at-fault" states, where the driver deemed responsible for an accident must cover the injuries of the other driver and their passengers, typically via their liability insurance coverage. However, some states are "no-fault" states, where medical bills are covered by each driver's individual personal injury protection (PIP) coverage, regardless of who is at fault for the accident. PIP insurance is mandatory in some states and optional or not offered in others.

In no-fault states, personal injury protection covers medical expenses and lost wages for the driver and their passengers if they are injured in an accident. PIP coverage usually pays for medical bills and/or wage loss up to the policy limit. It can also cover funeral and burial expenses. Minimum coverage requirements are set by the state governments and can vary, with maximums set by insurance companies, usually not exceeding $25,000. For example, in Florida, a minimum personal injury protection policy of $10,000 is required.

In at-fault states, bodily injury liability coverage provides protection against medical expenses for someone who is injured when the policyholder is at fault. Liability insurance does not cover the cost of the policyholder's medical bills if they are at fault in an accident; it only covers expenses incurred by third parties. In the case of an accident, the injured party sues the at-fault driver, not their insurance company. The at-fault driver can be personally liable and may face a lawsuit for any remaining damages that the liability insurance policy does not pay.

Some states have a shared liability or comparative fault system, where blame for the accident is shared between both parties. In these cases, the state's negligence law determines the amount of compensation awarded to each party for injury or property liability claims.

Dealing with unresponsive insurance companies

If you're dealing with an unresponsive insurance company, it's important to remember that you are not alone—many people experience frustration when dealing with insurance companies. Ignoring calls and delaying responses are tactics that insurance companies use to minimise payouts for claims. The longer they delay, the more interest they can make from the money that you may be entitled to.

• Review your policy — Understanding the terms and conditions outlined in your policy can provide valuable insight into your rights as a policyholder and the responsibilities of the insurance company. Pay close attention to any deadlines or requirements for filing claims or disputes.
• Document everything — Keep a detailed record of all communication attempts with the insurance company, including phone calls, emails, letters, and any other correspondence related to your inquiry or claim. This can help establish a pattern of inaction or unreasonable delay on the part of the insurance company.
• Seek legal advice — Contact an attorney or lawyer in your area who can deal with the insurance company for you. A letter from an attorney is often enough to get the insurance company to respond. They can also advise you on your rights and options and help you initiate a legal claim if necessary.
• Don't accept the first settlement offer — If you finally hear back from the insurance company and are offered a settlement, don't let an adjuster pressure you into taking their first offer. It is likely that their offer is not as good as it gets, despite what they may tell you.

Remember, insurance companies are required by law to act in good faith and deal fairly with their customers. If you feel that your insurance company is acting in bad faith, you may have grounds for legal action.

Frequently asked questions