Who Pays for Car Damage in a No-Fault State?

Realizing that your car is damaged due to an accident that wasn’t your fault can be overwhelming, especially if you are also dealing with medical injuries.

Determining how you'll recover compensation and if you are eligible to receive it depends on the accident itself, the injuries you have sustained, and the laws of your individual state. 

Some states are known as comparative fault or modified comparative fault states. Other states are recognized as no-fault states, which raises plenty of questions for someone who is seriously injured in an accident. 

If you're curious about who pays for car damage in a no-fault state, read on to learn more about the opportunity to recover compensation when you have been seriously injured in an accident. It can be very confusing to realize that someone else caused your accident either partially or entirely and that you are the one reaping the consequences in attempting to move on with your life. 

The medical bills may be piling up, and you may have additional stress from missing time at work. However, recognizing who pays for car damage in a no-fault state will help you to better understand how to proceed and put yourself in the best possible situation to recover compensation.

How Is Car Damage Paid for in a No-Fault State?

The at-fault driver's insurance is responsible for covering compensation for car damage in a no-fault state. A driver who caused an accident has to turn to their property damage liability coverage to help with payments that are due for the victim's car damage. However, the at-fault driver will also need to use their own collision insurance coverage to provide payments for the damage done to their own vehicle. 

If you live in a no-fault state and were involved in a car accident, you probably already know that you are mandated to carry what is known as personal injury protection or PIP insurance. You may also hear this referred to as no-fault coverage. If you have medical expenses from an accident and are curious about who pays for car damage in a no-fault state, Personal Injury Protection will pay for your accident-associated medical expenses no matter who was responsible for causing the accident. PIP coverage, however, does not extend to any type of property damage. 

There are some exceptions if you purchased extra coverage, but generally, a no-fault policy does not cover vehicle damage. You are responsible for carrying a no-fault policy that includes property damage liability protection to pay for vehicle damage to someone else's car if the crash was your fault, but this liability coverage does not extend to payments made for damage to your own car. One of the leading reasons that no-fault insurance policies are so popular and required in no-fault states is that they keep personal injury lawsuits out of court. This is because each party must turn to their individual insurance coverage to submit personal injury claims. 

Motorists are required to carry personal injury protection insurance in no-fault states, but it only covers injury claims. The policies for getting compensation from a typical accident insurance claim and through a no-fault policy are different. Under a no-fault policy, someone who was found responsible for the accident will have their insurance company pay all injury claims. However, this does not include motor vehicle damage as it is outside of PIP coverage.

Should I Repair My Vehicle With Comprehensive Coverage or Collision Coverage?

You have decisions to make after your vehicle is damaged in a personal injury accident in a no-fault state. You can pursue the first option of going through comprehensive coverage. This covers all kinds of damage to your vehicle, including damage not associated with a collision or vandalism.

Collision coverage is another type of damage protection that you may pursue through your insurance company after vehicle damage. Collision coverage covers any damage that impacted your vehicle due to striking an object or another car, such as an animal or a telephone pole. It can be difficult to discern the difference between comprehensive and collision coverage. Comprehensive and collision coverage can be useful, but insurance premiums are higher anytime that you extend your coverage. You may have to determine whether or not this is worth the additional expense on your insurance bill as both comprehensive and collision coverages are typically optional. 

The exception to this is if you have a car under a lease or a car loan, you will likely be required to carry comprehensive and collision coverage to protect your collateral. If your insurance company ends up paying for damages to your vehicle that were caused by someone else's fault, your insurance company will then pursue the at-fault driver's insurance carrier through the process known as subrogation. Thankfully, as the insured party, subrogation usually does not require additional work from you, and you can rely on your insurance company to help you manage this process.

Should I File a Claim Against the Other Driver's Insurance Policy?

If you have vehicle damage from an accident that was not your fault, you don't have to use your own comprehensive and collision coverage. You may be able to get your vehicle damage addressed through the at-fault driver's insurance. No-fault insurance systems do require you to use your own car insurance policy for less severe injury claims, but there are no restrictions like this about property damage. 

You will have to establish and file a claim in this manner, however, that the other driver was at-fault for the accident. The insurance company will probably want to investigate the circumstances of the accident or demand further evidence that it was their insured party's responsibility. Take appropriate steps immediately after an accident, such as gathering evidence and organizing all of your records regarding your vehicle repairs. A copy of the police report, for example, is an essential component of filing a claim with the other party.

What if My Car Is Totaled? 

If your car is determined to be a total loss, the insurance company will not pay for repairs made to it. This most frequently occurs in cases in which the cost to repair the vehicle is much higher than the value of the vehicle itself. You may not agree with the insurance company's assessment of the total loss amount, which can lead to challenges in getting your payout check from the insurance carrier. 

You may need to work with a car insurance attorney to assist you with that process or to determine whether or not the insurance company has crossed the line into bad faith practices. 

There is no one formula used for determining a total loss, but each insurance company looks at the amount that would be required to pay out a claim. 

If your vehicle has been totaled or you have severe damage to your car, you may need a lawyer's help to get support with receiving maximum compensation. 

Should I File a Lawsuit?

There is one other option for pursuing damage payments for your vehicle. It is the most time-consuming and can be expensive, but it may be required if you have attempted other methods and have been unsuccessful. This process of filing a lawsuit means you must meet certain thresholds to open a personal injury claim, but those limits do not apply to a property damage claim. If you believe that you will also sue for personal injury, your personal injury attorney may suggest that you bring these claims together. An at-fault driver could argue in court that you might have waived the right to bring the claims that you didn't start from the beginning. 

Do not put yourself in this position. Hire an experienced and qualified personal injury lawyer to help you with each aspect of your claim.

If your damages are high enough that you're worried about getting maximum compensation, you do have the right to consider or even file a suit. The right lawyer can make a big difference in helping you through that process, so plan ahead and make sure to file in a timely manner if you've got car damage in a no-fault state. 

Work with your personal injury attorney to determine the total of your damage claim. You may discover that you have extensive injuries and expenses associated with your accident, and it is best in these situations to take your claim seriously and to consider filing a lawsuit.

Otherwise, you may be unable to recover the compensation needed to make you whole after the accident. Personal injury victims are entitled under state law to pursue compensation when someone else is responsible for the accident, but you should know that the burden of proof may fall on you.

Working with a qualified team of personal injury attorneys is one of the best ways to increase your chances of success. Contact Morgan & Morgan today for a free, no-obligation case evaluation to get started.