Fault vs No-Fault

What Is the Difference Between Fault and No-Fault States?

Auto insurance rules vary across the country, and those rules shape how you might handle a car crash claim in your state. One of the key elements of your car accident claim will be whether your state follows a fault or a no-fault system. This difference affects who pays your compensation, how you can seek that compensation, and when you can file a lawsuit against a person who caused the crash.

At Salvi, Schostok & Pritchard P.C., we help clients understand the insurance claim process by state and recover the compensation they deserve. If you want to address your financial concerns after a crash and understand the fault vs no-fault states’ differences, reach out to us when you’re ready to pursue your claim.

Fault vs No-Fault States

Nearly every state uses one of two systems to handle car accident claims: fault or no-fault. The system a given state uses determines how injured drivers recover compensation. Here’s a quick breakdown of fault vs no-fault insurance.

In a fault state, the driver who caused the crash must pay for the resulting damage. That driver’s tort liability insurance typically covers:

  • Medical expenses
  • Lost income
  • Vehicle repairs
  • Pain and suffering

For example, Illinois follows a fault-based system. If another driver caused your crash, you can pursue compensation directly from that driver and their insurance company.

You typically have three options for recovering compensation in a fault state:

  1. File a claim with your own insurance company (which may later seek reimbursement from the at-fault driver’s insurance).
  2. File a claim directly with the other driver’s insurance company.
  3. In the event the at-fault driver’s insurance doesn’t fully compensate you, file a personal injury lawsuit against the at-fault driver.

This fault car insurance system allows crash victims to recover comprehensive damages that cover not only financial losses but also personal harm, such as pain, suffering, and emotional distress.

In no-fault insurance states, each driver’s own insurance policy covers medical bills and certain financial losses, regardless of who caused the crash. Compensation comes from personal injury protection (PIP) coverage. Under no-fault insurance laws, all drivers must carry personal injury protection insurance.

Under a no-fault car insurance system, the following rules generally apply:

  • You file a claim with your own insurer first.
  • You usually cannot sue the other driver for minor injuries (but you might be able to if you suffer a serious injury or you meet a specific injury threshold explained under the state’s no-fault laws).
  • You may file a lawsuit only if your injuries meet a legal threshold, such as permanent disability or medical costs in excess of PIP coverage.

When comparing no-fault vs tort insurance systems, you’ll find pros and cons with each. The intended benefit of no-fault is that injured drivers can avoid the often-adversarial process of dealing with the at-fault driver’s insurance company.  The intended benefit of the tort, or fault-based, system is that the compensation drivers receive can cover more of the damage caused by the at-fault party, encouraging financial responsibility.

When Can You File a Lawsuit in a No-Fault State?

Even in a no-fault auto insurance state, car collision victims can file personal injury claims provided their injuries meet the legal threshold. Each state sets its own threshold, but key factors typically include:

  • Medical expenses that exceed a specific dollar amount
  • Injuries that cause permanent impairment
  • Injuries that result in long-term disability
  • Injuries that cause significant disfigurement
  • Injuries that otherwise meet the state’s serious injury threshold

If an injury crosses the legal threshold, the injured person can step outside of the no-fault laws and seek compensation beyond basic PIP insurance coverage. Compensation can include pain and suffering, emotional distress, and loss of enjoyment of life.

Illinois drivers do not face these limitations, as our state uses a fault-based system. If another driver caused your injuries, you can pursue compensation from them without meeting any legal thresholds.

How is Fault Determined in an Illinois Car Accident?

In at-fault states like Illinois, accident victims must prove fault before they can recover compensation for their damages.

Illinois courts and insurance companies examine evidence to determine fault after a crash. Insurance adjusters often attempt to shift blame and reduce payouts, but strong evidence and skilled legal guidance can help protect your rights and hold the at-fault party accountable.

Your attorney may seek the following evidence when establishing fault:

  • Police reports
  • Witness testimony
  • Traffic camera footage
  • Accident scene photos
  • Property damage reports, detailing car repairs and the location and severity of vehicle damage
  • Accident reconstruction analysis
  • Cellphone records in distracted driving cases

This evidence must show that the at-fault driver acted negligently or recklessly, causing the collision and your injuries.

Common examples of negligent or reckless behavior include:

  • Speeding
  • Running a red light
  • Texting while driving
  • Driving under the influence of drugs or alcohol
  • Failing to yield

Critical evidence can disappear quickly if you don’t take swift action to collect it. An experienced attorney can preserve and obtain this evidence before it’s lost or destroyed.

Modified Comparative Negligence in Illinois

Illinois uses a modified comparative negligence system for car crash lawsuits. Under our state’s comparative fault system, anyone who bears less than 51 percent of the blame for a collision can recover compensation at trial. However, their compensation will decrease in proportion to their percentage of blame.

For example, if a jury awards you $100,000 in compensation and finds you 20 percent at fault, your compensation will decrease by that 20 percent, and you will ultimately recover $80,000.

Insurance companies may try to take advantage of this system by shifting as much blame onto you as possible and reducing the amount they offer you. If this happens, get in touch with an experienced car accident lawyer from Salvi, Schostok & Pritchard P.C immediately, as they can protect your rights and build a compelling claim that holds the at-fault party fully accountable.

Illinois Claim Process

After a car crash in Illinois, you must act quickly to protect both your safety and your legal rights. Your first steps should be to report the incident to the police, seek prompt medical attention, and contact an experienced car accident attorney. From there, the claims process includes:

  • Notifying Your Insurer: You must notify your insurer of the collision, but you should provide only basic facts and avoid any speculation.
  • Investigating and Gathering Evidence: To build your claim, your attorney will investigate the crash, collect key evidence, interview witnesses, and consult experts when needed.
  • Negotiating a Settlement: Your attorney will present their evidence to the other driver’s insurer and demand compensation. The insurer will then begin negotiating a settlement with your attorney.
  • Filing a Lawsuit (If Necessary): If the insurance company refuses to offer fair compensation, your attorney can file a lawsuit. A seasoned trial lawyer will then fight for a favorable verdict on your behalf.

Contact our Chicago Car Accident Lawyers

At Salvi, Schostok & Pritchard P.C., we have recovered over $3.5 billion in verdicts and settlements for our clients, and we stand ready to fight for the compensation you deserve after a car accident. Contact us today for your free consultation.