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A Closer Look Into At-Fault and No-Fault Auto Insurance Laws


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Operating Differences between At-Fault and No-Fault Auto Insurance Systems.

In the case of car accidents, the first thing that comes to mind is filing for compensation through an insurance company. However, different states have different sets of rules and insurance laws. While many states may follow the at-fault auto insurance laws, other states may also function under the no-fault auto insurance system. The primary difference between the two is that in a state such as Georgia, which works under the at-fault system, the insurance claim would have to be filed against the negligent driver’s insurance company. In contrast, in a no-fault state, the claim would have to be filed with one’s own insurance company for personal injury protection, covering the treatment costs or any other losses no matter who was responsible for the car crash.

Everything you need to know about No-Fault Insurance Systems.

In a no-fault auto insurance system, drivers are required to have coverage from their injury protection insurance which will be responsible for compensating any losses that the driver may have suffered. While no-fault insurance laws are specific, there can be some exceptions. In circumstances where your PIP insurance does not cover your losses, or you have experienced severe injury according to the court laws, you may be entitled to go beyond the usual no-fault auto insurance laws and file a lawsuit against the person at fault or seek compensation from the negligent driver.

Where to seek compensation from in a State under the At-Fault Auto Insurance System?

Compensation can only be achieved by filing a claim against the person at fault in states following the at-fault insurance laws. The at-fault driver’s insurance provider will cover all the losses suffered. In the case of injuries, the negligent driver’s bodily injury liability insurance would be responsible for covering the medical expenses, whereas, for property or vehicular damage, the property damage liability insurance would be responsible for compensating. If the at-fault driver’s insurance provider does not deal in good faith or the insurance does not fully compensate the losses suffered due to policy limits, you could file a personal injury lawsuit to cover all expenses.

What counts as Fault in the At-Fault States?

To seek compensation in an at-fault auto insurance system, you need to establish before the court that the said person was negligent while driving. Negligence can be portrayed in several ways: driving under the influence, texting while driving, reckless driving, going over the speed limit, failing to abide by traffic laws, and many more. Once you successfully establish the said party’s negligence, you will need to demonstrate how their negligence caused your suffering and financial losses. It is up to the insurance adjusters to review the claims and decide if the accused person was indeed at fault, keeping in line with the state guidelines. Although, the final decision is for the courts to make.

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