Haris Ashley
Being in a car accident is a stressful experience, and it can be made even more stressful when insurance companies get involved. In most states, one party is considered at-fault and must cover the injuries of the other driver and their passengers, usually through their liability insurance. However, some states are no-fault states, where injuries are covered by each driver's individual personal injury protection coverage. When an accident occurs, it's important to take immediate steps to protect yourself financially, such as calling the police, exchanging insurance information, and taking photos of the vehicles involved. It's also important to be careful when speaking to insurance companies, as they may use tactics to avoid paying claims. Having an attorney can be helpful in these situations.
| Characteristics | Values |
|---|---|
| When to inform insurance company | Immediately |
| Who to inform | Your insurance company and the other person's insurer |
| What to do if the other driver's insurance company denies responsibility | File a claim with your own insurance company |
| What to do if the other driver doesn't have insurance | File a claim with your own insurance company if you have uninsured/underinsured motorist coverage |
| What to do if the other driver's insurance company tries to confuse you | Get a lawyer to handle the other driver's insurance company |
| What to do if the other driver's insurance company delays | Get a lawyer to handle the other driver's insurance company |
| What to do if the other driver's insurance company reduces the value of your claim | Get a lawyer to handle the other driver's insurance company |
| What to do if you are partially at fault | The insurers from both sides may determine that there is shared blame for the accident, known as comparative fault or shared liability |
| What to do if the accident occurs in a no-fault state | Fault may not need to be determined for bodily injury claims. The at-fault driver's insurance typically pays for damage to the other driver's vehicle and property. |
| What to do if you are at fault | Your insurer typically pays for the other driver's injuries and damaged property |
| What to do if you are not at fault | The at-fault driver's auto insurance should pay for any property damage and medical bills |
| What to do if the situation is not clear-cut | A claims adjuster gets involved to dig deeper into the cause of the accident |
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What You'll Learn
- The at-fault party's liability insurance coverage pays for injuries and property damage
- No-fault states: each driver's injuries are covered by their own insurance
- Shady insurance company tactics: adjusters may ask leading questions or delay
- Comparative fault: shared blame is possible, depending on state laws
- First steps: call the police, exchange insurance, take photos, avoid blame
The at-fault party's liability insurance coverage pays for injuries and property damage
When an accident occurs, there is usually an 'at-fault' party who is responsible for covering the injuries and property damage of the other driver and their passengers. This is typically done through their liability insurance coverage. However, it is important to note that some states have a 'no-fault' system, where injuries suffered in an accident are covered by each driver's own personal injury protection coverage (PIP), regardless of who is at fault. In these states, drivers are required to purchase car insurance with PIP to cover their own injuries.
Liability insurance provides financial protection for people involved in a car accident who were not at fault. It covers the costs of medical expenses, pain and suffering, loss of income, and sometimes legal fees if the policyholder is sued. It also covers property damage, such as car repairs or the cost of purchasing a new vehicle. The at-fault party's liability insurance should cover these expenses, protecting the injured party from having to pay out of pocket.
If the at-fault driver's liability limits are insufficient to cover all the expenses, the injured party may need to explore other options, such as medical payments coverage from their own insurance company. Comprehensive or collision coverage may also be considered, but these typically focus on vehicle repairs and property damage rather than non-economic damages. Therefore, it is advisable to consult with a licensed insurance agent to ensure adequate liability insurance coverage and avoid being underinsured in the event of significant injuries and non-economic damages.
After an accident, it is important to take immediate steps to protect yourself financially. This includes calling for emergency services if anyone is injured and contacting the police to obtain a police report, even if the accident is minor. Exchange insurance information with the other driver and, if possible, take photos of both vehicles to assist with insurance claims. Avoid assigning blame and let the insurance companies determine fault.
When dealing with insurance companies, it is advisable to stick to the facts of the accident and clearly present your case. Contact the other driver's insurer to report the accident and inform your own insurance company as well. This demonstrates a good-faith effort in reporting and can be beneficial if there are disputes or issues with the other party's insurance. Remember that filing a claim with the at-fault party's insurance typically does not require you to pay a deductible, whereas filing with your own collision coverage may result in out-of-pocket expenses.
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No-fault states: each driver's injuries are covered by their own insurance
In the US, there are 12 no-fault states where each driver's injuries are covered by their own insurance. These states are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In these states, drivers are required to purchase no-fault/personal injury protection (PIP) coverage. This means that if a driver is injured in an accident, they will file a claim with their own insurance company to pay for their medical costs, regardless of who was at fault. This is in contrast to at-fault states, where the insurance company of the driver found to be at fault pays for all damage costs, including medical bills and property damage.
In no-fault states, drivers are still responsible for paying for damage to another driver's car if they caused the accident. Additionally, no-fault states may allow drivers who have suffered severe injuries to sue the at-fault driver if certain conditions are met. It is important to note that no-fault insurance laws can vary from state to state, and some states offer drivers the choice between a no-fault and a traditional insurance policy. For example, in Kentucky, New Jersey, and Pennsylvania, drivers can opt out of a no-fault policy.
One benefit of no-fault insurance is that it can lead to quicker claims handling and fewer lawsuits. However, it may also limit the ability to sue for pain and suffering. It is also important to note that even in no-fault states, it is generally a good idea to file a police report after an accident. This creates a record of the incident, which can be valuable when filing an insurance claim.
Overall, understanding the auto insurance laws in your state is crucial to ensure you have the right coverage. In a no-fault state, drivers can expect their own insurance company to cover their medical expenses, regardless of who is at fault in an accident. However, they may still be responsible for paying for property damage if they are found to be at fault.
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Shady insurance company tactics: adjusters may ask leading questions or delay
When an accident occurs, one party is usually considered "at-fault" and is held responsible for covering the injuries and damages of the other driver and their passengers. In determining fault, insurance adjusters may use shady tactics to minimise the amount paid out in claims.
One common tactic is to delay the claims process. This can be done by changing the adjuster in the middle of the process, causing the claim to start from the beginning. Adjusters may also fail to mention the forms required to make a successful claim before the statute of limitations runs out. This can result in the policyholder being pushed to accept a lower payout offer or discourage them from making a claim at all. Another method is to wait long periods before returning calls and answering questions, as well as continually asking for additional and unnecessary information and documentation.
Insurance adjusters are trained to appear friendly and concerned. They may use this to their advantage by asking leading questions to get you to let your guard down and tell them more than is required. For example, they may ask how you are feeling, and if you respond "good" or "okay", they will use this as evidence that you were not hurt in the accident. They may also try to get you to sign forms with sneaked-in medical authorisations or waivers and releases, allowing them to access your medical history and claim that your injuries are pre-existing conditions.
To avoid being taken advantage of, it is important to read everything the insurance company gives you to sign and be cautious about what you say. Working with reputable and trusted insurance advisors can also help navigate the complexities of insurance plans and claims.
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Comparative fault: shared blame is possible, depending on state laws
In the US, different states follow different systems of fault determination. While some states follow a "no-fault" system, others follow a "pure comparative negligence" system, a "modified comparative negligence" system, or a "contributory negligence" system.
In a pure comparative negligence system, the injured party can claim compensation proportional to the degree of fault of the other party, regardless of their own degree of fault. For example, if one driver is deemed to be 60% at fault for an accident and the other 40% at fault, the former can claim 60% of the damages from the latter.
Some states follow a modified comparative negligence system, which has two types: the 50 percent bar rule and the 51 percent bar rule. Under the 50 percent bar rule, the injured party cannot claim damages if they are found to be 50% or more at fault. Similarly, under the 51 percent bar rule, the injured party cannot claim damages if they are found to be 51% or more at fault.
A handful of states follow a contributory negligence system, which is a harsh, centuries-old rule. Under this system, if the injured party is found to be even 1% at fault, they cannot claim any compensation from the other party.
In states that follow a pure comparative negligence system, the shared blame rules may not matter much. However, in a modified comparative negligence state, where fault percentages are crucial, and in contributory negligence states, the shared blame rules can significantly impact the value of an injury-related insurance claim.
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First steps: call the police, exchange insurance, take photos, avoid blame
Being involved in a car accident can be a stressful experience. Knowing what steps to take immediately after can help you protect your health, legal rights, and insurance claims.
Call the police
Different states have different legal requirements about whether you must call 911 from the scene of a car crash. This generally depends on the extent of the damage. For example, in some states, you only have to call the police if the auto accident involves serious injuries or big damage. However, state law may still require drivers to report the collision to law enforcement, and failure to do so could result in legal issues. If the police come to the scene of the accident, they will make a report containing the different parties' versions of what happened and the police officer's assessment. You should request a copy of this report as it will be important for your insurance claim.
Exchange insurance and take contact information
Exchange insurance details and take the contact information of the other driver involved in the accident. This is required by law and will help you in the process of recovering compensation for any damages. You should also get the contact information of any passengers in your vehicle and any potential witnesses. If you are injured, exchange information with the at-fault driver.
Take photos
Take photographs of the scene and other details surrounding the accident, such as the location, road and weather conditions, and any property damage. These photos will help to preserve evidence that you can present to insurance adjusters and may be useful if a personal injury lawsuit is filed. Remember to take photos from a variety of distances and angles, and keep a common landmark in each photo to demonstrate distance and scale.
Avoid blame
Do not discuss fault with the other driver or apologise for the accident, as this may be taken as an admission of guilt. Instead, focus on gathering the necessary information and evidence to support your insurance claim. If you believe road conditions or vehicle malfunctions may have contributed to the accident, seek legal advice immediately so that an investigation can begin.
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Frequently asked questions
You should call 911 if anyone involved in the accident has been injured. Even if no one has been hurt, you may want to call the police to get a police report. Exchange insurance information with the other driver and take photos of your car, and their car if possible. Avoid playing the blame game and let the insurance companies figure out who is at fault. Contact the other driver's insurer to report that you were involved in a collision with one of their policyholders, sticking only to the facts of the accident.
Insurance companies will determine who is at fault according to state laws where the incident occurred. They will also review the facts relating to the accident to determine who was negligent. Fault can be assigned to the party that was most negligent or in greatest violation of state laws. Evidence used to determine fault includes photographs, witness statements, and police reports.
If the other insurance company refuses to pay, ask for their reason in detail and in writing. Your next option is to file a claim with your own car insurance company. If you have uninsured/underinsured motorist coverage, it will pay if the at-fault driver didn't have insurance or enough insurance to cover your repairs.
