What Is an At-Fault vs. No-Fault Accident?
As we stated above, fault helps determine who is responsible for paying for property damages or injuries in an accident through either property damage liability or bodily injury insurance coverage. How fault is shared relies on whether you get into an accident in an at-fault state or no-fault state.
In at-fault states, the at-fault driver is responsible for covering property damages and medical costs for both parties. In no-fault states, your own personal injury protection (PIP) insurance or medical injury provider will cover your medical bills, regardless of who is at fault in the accident. Liability insurance, on the other hand, pays for the other driver and their passengers after a car accident.
Depending on the state you’re in, you may or may not be eligible for a payout based on the negligence laws and your degree of fault. In Minnesota and Connecticut, for example, you can’t receive any compensation if an insurance adjuster determines that you’re 51 percent at fault or more. In other states, like Maryland, you won’t receive a payout if you share any fault.
Although there are a lot more differences between at-fault and no-fault accidents, there is one important similarity between the two. If you are found to be at fault in an accident, you will have to cover all property damages, regardless of where you live.
That means you should expect the other driver to submit a third-party claim to your provider if you’re at fault in an accident in both at-fault and no-fault states. “Third-party” means that the no-fault driver files the claim through the other party’s provider (third-party) instead of their own provider (first-party).