In at-fault states, the insurance company of the driver who caused the car accident is responsible for paying for damages.
We all play the blame game from time to time, but rarely does it have greater stakes than in the aftermath of a car accident. In the US, two legal systems govern the process of seeking damages: at-fault and no-fault. At-fault states (or “tort states”) make up the majority of the country, so it’s important to know how they work.
At-fault states make the at-fault driver in a car accident responsible for paying damages.
(and sometimes other types of coverage) to meet their state's minimum car insurance requirements.
After a car accident in an at-fault state, injured parties must file for compensation from the at-fault driver's insurance company.
It's a complicated subject, but don't worry, we'll explore each topic in depth. Here's what you need to know about tort states, insurance, and how to get fair compensation.
In at-fault states, any driver who causes a car crash is personally liable—that is, financially responsible—for compensating accident victims.
We moan about modern insurance premiums, but their original intent was noble. In the early 20th century, the damage caused by automobiles was covered by tort law, which emphasized personal financial responsibility. But with the advancement of technology, it became clear the capacity of motor vehicles to cause harm wasn't always matched by their owners’ wealth.
In 1925, Connecticut became the first state to introduce the concept of vehicular financial responsibility to drivers. Others soon followed suit. The at-fault system transfers the financial burden of car accidents to insurance companies, hopefully guaranteeing accident victims more compensation.
How do at-fault states differ from no-fault states?
In at-fault states, the at-fault driver's insurance company pays the cost of treating any bodily injuries sustained in a car accident. No-fault states allow every driver to file a claim with their own insurance company, regardless of fault.
The distinction between at-fault and no-fault states only applies to bodily injuries. No matter where you drive, if you cause any property damage, the owner can file a claim with your insurance provider for compensation.
Still have questions? We’ve got answers!
Question
Answer in at-fault states
Answer in no-fault states
What kind of car insurance do I need?
Liability coverage (other types of coverage may also be required)
Liability coverage and Personal Insurance Protection (PIP) (other types of coverage may also be required)
Who pays for damages after a car accident?
The insurance provider of the at-fault driver
The insurance provider of every person involved
Who determines fault?
The adjuster representing the at-fault driver’s insurance provider
The adjuster representing the insurance provider of every person involved
How do I file a claim?
Contact the at-fault driver’s insurance company
Contact your insurance company
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How do you sue someone in an at-fault state?
Almost everyone has the right to sue a negligent driver for severe damages; it’s best to do so with the help of a qualified personal injury lawyer or law firm.
The question of who can sue who is very, very, very complicated—and that’s an understatement. The validity of a personal injury lawsuit could be decided by:
The laws of the state in which the accident happened
How much car insurance you and the other driver were carrying
Whether your damages surpass a verbal threshold by meeting definitions like “catastrophic injuries” or “wrongful death”
Whether your damages surpass a monetary threshold
If you’re contemplating legal action, we strongly suggest you invest in a qualified car accident lawyer. They can guide you through the thorny thicket of at-fault and no-fault insurance laws in America.
Key Takeaway At-fault states make the at-fault driver—or rather, their insurance company—responsible for paying for damages resulting from a car accident.
How at-fault laws affect car insurance coverage
Because at-fault states hold at-fault drivers liable for damages, car owners must purchase liability coverage for financial protection.
Car insurance required in at-fault states
Whether you’re a longtime resident or the new kid in town, you must purchase a car insurance policy that meets your state’s minimum car insurance requirements.
, not only will you be forced to pay for any accidental damages out of pocket, but you could also receive a fine, jail sentence, or driver’s license suspension!
Here’s the minimum car insurance required in every at-fault state and what it covers:
pays the cost of treating you, your passengers, household members, and pedestrians—including medical expenses, loss of income, and funeral expenses—regardless of fault.
applies in a collision with a driver who either isn’t carrying car insurance or isn’t carrying enough to cover your damages. It may cover the cost of repairing or replacing your property or treating you and your passengers’ injuries, but you can’t be at fault for the car accident.
pays the cost of ongoing medical treatments, hospitalization fees, and funeral expenses for you and your passengers, regardless of fault.
The bare minimum car insurance is rarely sufficient. It's wise to invest in extra coverage options if you can afford them. For example, you might want reimbursement for theft, weather-related damage, or vehicle repairs.
Whether you’d like to save money on mandatory or optional coverage, try comparison-
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Which states are at-fault states?
There are 38 at-fault states in the US.
All at-fault states require liability coverage, but not all liability coverage is equal. Before buying car insurance, you’ll have to choose your coverage limits, i.e., the maximum dollar amount your insurance provider will cover. Double your policy limits if you can—don't worry, your premiums won't double as well!
Liability coverage limits are usually written as "X/X/X". Each ‘X’ represents thousands of dollars of either bodily injury or property damage liability coverage, which may apply per person or per accident. For example, Alabama’s “25/50/25” coverage limits stand for:
$25,000 of Bodily Injury Liability (BIL) coverage per person
$50,000 of Bodily Injury Liability (BIL) coverage per accident
$25,000 of property damage liability coverage per accident
Keep that in mind while we look at the at-fault states with the simplest liability car insurance requirements. (Hint: click the name of a state to read more about its car insurance laws!)
State
Minimum BIL coverage per person/BIL coverage per accident/property damage liability coverage per accident
As we said, some states require car owners to buy no-fault insurance on top of the usual liability coverage. Take a look below if you didn't find your state in the first table.
State
Minimum BIL coverage per person/BIL coverage per accident/property damage liability coverage per accident
What happens if I’m in a car accident in an at-fault state?
In an at-fault state, you must file an injury claim with the other driver's insurance company to receive compensation after a car accident.
You can help your injury claim by taking pictures, making notes, and exchanging contact information with any other driver(s) or witnesses at the scene.Ask an insurance agent for more helpful tips when you call to
What happens if I get into a car accident while traveling in an at-fault state?
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If you get into a car accident in an at-fault state, at-fault rules usually apply. File a car accident claim report with the other driver's insurance provider. As long as you meet the minimum car insurance requirements in your home state, your coverage will increase (or decrease) to meet that of the state where the accident occurred, even if you live in a no-fault state.
What happens if I get into a car accident while traveling in a no-fault state?
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If you get into a car accident in a no-fault state, no-fault rules usually apply. File a car accident claim report with your insurance provider. As long as you meet the minimum car insurance requirements in your home state, your coverage will increase (or decrease) to meet that of the state where the accident occurred, even if you live in an at-fault state.
How do I file a car accident claim report in an at-fault state?
Get started on your car accident insurance claim by contacting the other driver's insurance provider.
Here’s a step-by-step guide:
Grab your vehicle registration and insurance card.
Call or email the insurance provider and ask to file an injury claim.
Write down your assigned case number, insurance adjuster name, and contact info.
Send as much evidence surrounding the car accident as possible, including notes, pictures, witness info, police reports, and bills for any car repairs.
The more evidence you provide, the better the odds the insurance adjuster won’t find you at fault—provided that’s what really happened, of course.
Who determines fault in an at-fault state?
An insurance adjuster determines who's at fault based on the available evidence after you file a car accident claim. If the other driver contacts your insurance company, the two adjusters will work together to assign fault. The adjuster(s) decide on compensation after it's clear how much negligence each driver contributed to the accident.
How is compensation awarded in an at-fault state?
Driver negligence can affect how much compensation they receive in an at-fault state.
In law, “negligence” describes someone’s failure to avoid harming others by taking reasonable or appropriate action. It could be texting while driving, failing to spot a pedestrian, or hitting the gas instead of the brakes. In simpler terms, negligence refers to how much blame someone bears for causing a car accident.
Here's a fictional example involving two degrees of negligence:
Sanpreet is driving to work when she gets rear-ended by Viktor.
Viktor hit the gas without noticing Sanpreet’s brake lights—but Sanpreet was distracted by her GPS and braked suddenly after lurching forward.
Each driver suffers $1,000 worth of damage to their vehicle bumper.
The accident happened in an at-fault state; after filing a claim with each other’s insurance companies, the adjusters decided Sanpreet was 30% at fault and Viktor 70%.
Click to find out how the three versions of comparative negligence law in America could affect their compensation:
Partial/modified comparative negligence
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In a state following partial or modified comparative negligence, anybody injured in a car accident is entitled to damages proportional to their share of the blame for the crash. Depending on the state, they must be less than 50-51% at fault.
, Sanpreet could collect up to $700 ($1,000 minus 30% for her share of the blame). Because he’s more than 50% at fault, Sanpreet’s insurance provider would deny Viktor’s insurance claim.
Pure comparative negligence
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Following pure comparative negligence laws, anybody injured in a car accident is entitled to collect damages in proportion to their share of fault for the crash.
, Sanpreet would be entitled to collect $700 ($1,000 minus 30% for her share of the blame). Because he was 70% to blame for the accident, Sanpreet’s insurance provider will only award Viktor $300 (30% of $1,000).
Pure contributory negligence
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Following pure contributory negligence laws, anybody injured in a car accident and even partially to blame for the crash is prevented from collecting any damages.
, Viktor’s insurance company will deny Sanpreet’s insurance claim because she was 30% to blame for the accident. Viktor’s claim would also receive zero compensation because he played a role in the crash.
Key Takeaway To receive compensation after a car accident in an at-fault state, both drivers must file a claim with the other’s insurance provider. An insurance adjuster will assign fault and compensation following the state’s comparative negligence laws.
How much does car insurance cost in at-fault states?
The cost of car insurance in an at-fault state depends on your driver profile, the amount of coverage you buy, and whether you comparison-shop.
Research shows there’s no single cheapest car insurance company for everybody. Depending on their driving record, credit score, vehicle, and location, different drivers could receive vastly different quotes from the same car insurance company. That’s why it pays to compare offers with
on the App store. No matter their home state, our customers find the coverage they need at the price they like, saving an average of over $800 per year!
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FAQ
How many no-fault states are there in the US?
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There are 12 true no-fault insurance states in the US, including Kansas, Hawaii, Michigan, New York, and Utah. No-fault states allow anyone in a car accident to seek compensation from their insurance provider, regardless of fault. No-fault states generally require Personal Injury Protection (PIP) insurance and some form of property damage liability.
Is Texas an at-fault state?
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Yes, Texas is an at-fault state, which means at-fault drivers are responsible for paying for car accident damages. To meet the Lone Star State’s minimum car insurance laws, you’ll need $30,000 of bodily injury liability coverage per person, $60,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage per accident.
Is California an at-fault state?
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Yes, California is an at-fault state. In the event of a car accident, you're responsible for paying the damages, or rather, your insurance company is. California car insurance laws require drivers to carry $15,000 of bodily injury liability coverage per person, $30,000 of bodily injury liability coverage per accident, and $5,000 of property damage per accident.
Is Florida an at-fault state?
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No, Florida isn’t an at-fault state. In fact, it’s one of the 12 true no-fault states in the country. To drive in Florida, drivers must purchase $10,000 of property damage liability insurance and $10,000 of no-fault PIP insurance.
How does no-fault car insurance work in an at-fault state?
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If you live in a no-fault state but have an accident in an at-fault state, you’ll be covered as long as you have the minimum car insurance required in your home state. Depending on the state where the accident happened, your insurance coverage will automatically increase (or decrease) to match the required minimums. You can file a car accident claim report with the other driver’s car insurance company and they can file one with yours.