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Last updated: December 20, 2024
At-Fault vs. No-Fault Accidents
How fault is determined, why it matters and what you can do to prepare for potential accidents
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One of the first things your insurance provider will do after an accident is determine which driver is at fault and the degree to which they are at fault. Whoever is at fault in an accident will be responsible for covering property damages and injuries of both parties ― unless you live in a no-fault state, which we’ll break down below.
Fault laws dictate who pays for claims and how much they’re expected to pay. But those fault laws change from state to state and knowing how those laws will affect you on the road can be tricky. Below, we’ll cover everything from what fault is to how fault is determined to how it affects your premiums.
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Similarities and Differences
What Is an At-Fault vs. No-Fault Accident?
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.
Similarities
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).
PRO TIP:
Even if you’re at fault in an accident, you should still file a claim with your own insurance company as opposed to waiting for the other driver to submit a third-party claim to your provider.
Differences
There are a few more differences than there are similarities between at-fault and no-fault accidents, including:
- Medical payment laws: In at-fault states, the at-fault party is responsible for the other party’s medical expenses. In no-fault states, each party is responsible for paying for their own medical expenses, regardless of who is at fault.
- Accident-related lawsuits: In at-fault states, the victim of an accident can sue for both economic and non-economic damages, such as pain and suffering, emotional distress and humiliation. In no-fault states, the victim can only sue for economic damages, such as injuries or property damage, unless the injuries are life-threatening.
- Average premium rates: In no-fault states, auto insurance costs are higher, on average.1
Fault System Insurance Law
Here is the complete list of at-fault (liability) vs. no fault-states:
| State | At-fault vs. no-fault state law | Local negligence laws | Compensation threshold ― maximum percentage of fault you can have to receive compensation |
|---|---|---|---|
| Alabama | At-fault | Contributory | Driver’s compensation reduced if they share fault |
| Alaska | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Arizona | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Arkansas | At-fault | Modified comparative | 50% |
| California | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Colorado | At-fault | Modified comparative | 50% |
| Connecticut | At-fault | Modified comparative | 51% |
| Delaware | At-fault | Modified comparative | 51% |
| District of Columbia | At-fault | Contributory | 0% |
| Florida | No-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Georgia | At-fault | Modified comparative | 50% |
| Hawaii | No-fault | Modified comparative | 51% |
| Idaho | At-fault | Modified comparative | 50% |
| Illinois | At-fault | Modified comparative | 51% |
| Indiana | At-fault | Modified comparative | 51% |
| Iowa | At-fault | Modified comparative | 51% |
| Kansas | No-fault | Modified comparative | 50% |
| Kentucky | Choice no-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Louisiana | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Maine | At-fault | Modified comparative | 50% |
| Maryland | At-fault | Contributory | 0% |
| Massachusetts | No-fault | Modified comparative | 51% |
| Michigan | No-fault | Modified comparative | 51% |
| Minnesota | No-fault | Modified comparative | 51% |
| Mississippi | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Missouri | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| Montana | At-fault | Modified comparative | 51% |
| Nebraska | At-fault | Modified comparative | 50% |
| Nevada | At-fault | Modified comparative | 51% |
| New Hampshire | At-fault | Modified comparative | 51% |
| New Jersey | Choice no-fault | Modified comparative | 51% |
| New Mexico | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| New York | No-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| North Carolina | At-fault | Contributory | 0% |
| North Dakota | No-fault | Modified comparative | 50% |
| Ohio | At-fault | Modified comparative | 51% |
| Oklahoma | At-fault | Modified comparative | 51% |
| Oregon | At-fault | Modified comparative | 51% |
| Pennsylvania | Choice no-fault | Modified comparative | 51% |
| Rhode Island | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| South Carolina | At-fault | Modified comparative | 51% |
| South Dakota | At-fault | Slight-gross negligence comparative | Compensation only if you exhibited “slight” negligence and the other party exhibited “gross” negligence |
| Tennessee | At-fault | Modified comparative | 50% |
| Texas | At-fault | Modified comparative | 51% |
| Utah | No-fault | Modified comparative | 50% |
| Vermont | At-fault | Modified comparative | 51% |
| Virginia | At-fault | Contributory | 0% |
| Washington | At-fault | Pure comparative | Driver’s compensation reduced if they share fault |
| West Virginia | At-fault | Modified comparative | 51% |
| Wisconsin | At-fault | Modified comparative | 51% |
| Wyoming | At-fault | Modified comparative | 51%2 |
FYI:
Drivers can choose between at-fault and no-fault insurance in choice no-fault states: New Jersey, Kentucky and Pennsylvania.3
Types of Negligence
Comparative Negligence
States with comparative negligence laws allow for partial fault for both parties, which means that you can split the costs according to the degree of fault. Comparative negligence is broken down into two types of negligence:
- Pure comparative negligence: Regardless of how negligent or at fault you are in an accident, you can recover some money if you’ve suffered injuries in an accident (even if you’re more responsible than the other driver).
- Modified comparative negligence: In modified states, you can only receive compensation if you’re within a threshold of fault. For example, if you’re in New Jersey or Iowa, you can only receive compensation if you’re less than 51 percent at fault.
Contributory Negligence
In these states, you can’t receive any compensation if you’re found to have any level of negligence in an accident.
How to File a Claim in a No-Fault State
The process for filing a claim in no-fault states is fairly simple:
- Make a third-party claim: Contact the other party’s insurance provider and file a third-party property damage claim.
- Make a first-party claim: If you suffer any injuries in the accident, you’ll have to file a PIP coverage claim through your own provider (first-party claim).
How to File a Claim in an At-Fault State
The process for filing a claim in an at-fault state is similar to no-fault states. Here’s what you would do if you’re at fault in the accident:
- File a third-party claim: File a third-party claim for both property damage and bodily injuries.
- File a first-party claim: If you suffer any injuries or property damage and you have collision coverage or medical payments coverage, you can file a first-party claim for your losses.
- Determine payout: Your insurance provider will take care of the rest of the process to determine fault in the accident. You might be fully at fault, partially at fault or not at all at fault.
How Fault is Determined
In some cases, it’s very easy to determine fault. Either one driver admits fault in the car insurance claim and police report or the evidence indicates fault. In other cases, it can be tricky, especially if you’re in a state with partial fault laws. In any case, after the insurance adjuster determines fault, your local laws will determine how payments are distributed.
How Fault Affects Premiums
If you find yourself in an at-fault accident, there’s a good chance your provider will increase your premiums. How high your premiums will increase depends on a few factors:
- Your state
- Your provider
- Your driving history
- The cost/severity of the accident
- Your degree of fault
Here are a few average annual cost increases after at-fault accidents from a few top providers:
| Insurance provider | Average annual rates prior to an at-fault accident | Average annual rate increase after an at-fault accident | Rate increase by percentage |
|---|---|---|---|
| AAA | $2,562 | $3,717 | 45% |
| Allstate | $2,297 | $3,686 | 61% |
| American Family | $1,716 | $2,176 | 27% |
| Auto-Owners | $1,554 | $2,538 | 63% |
| Erie | $1,427 | $1,823 | 28% |
| Farmers | $2,256 | $3,581 | 59% |
| GEICO | $1,293 | $2,269 | 75% |
| Nationwide | $1,572 | $2,418 | 54% |
| Progressive | $1,834 | $2,738 | 49% |
| State Farm | $1,581 | $2,172 | 37% |
| Travelers | $1,449 | $2,013 | 39% |
| USAA | $1,208 | $1,835 | 52% |
| National Average | $2,068 | $2,940 | 42% |
LEARN MORE:
Avoiding accidents, especially at-fault accidents, is a great way to keep your premiums low. If you’re looking for other ways to keep your rates low, check out our complete guide on how to lower your auto insurance costs.
Recap
The difference between at-fault and no-fault accidents can determine your premium rates, how much compensation you’re owed (or owe), how complicated the claims process will be and what kind of rights you have in the claims process. Because each state is different, it’s important to know the different types of negligence and municipal laws relevant to your state.
Frequently Asked Questions
How long does an at-fault accident stay on my record?
Most accidents will stay on your record for about three to five years. They could stay on your record for longer if you already have a poor driving record.
How can I prove that I’m not at fault in an accident?
- Call the police so they can make a police report, which you can use as evidence in your claim.
- Exchange information with the other driver, but don’t admit fault or have a conversation with them beyond this exchange of information.
- File a claim with your insurance provider.
- Take photos/videos of the scene of the accident.
- Gather eyewitness testimonies to help make your case to your provider, the police, or a court jury.
How much will my insurance increase after an at-fault accident?
On average, insurance providers increase annual premiums by 42 percent for drivers in at-fault accidents. Keep in mind that this is only an average as factors like your driving record, the state you’re in and your insurance provider can lead to higher or lower premium increases.
Who is at fault in a parking lot accident?
If you hit a legally parked car in a parking lot, you will almost certainly be at fault in the accident. However, if both cars are moving, the tailing driver is usually at fault as is the case in most accidents.
Staff Writer & Editor
Ali Saleh is a copywriter with nearly 10 years of experience in content writing, editing, and journalism. Ali’s work has been featured on a number of notable sites and publications, including MSN, Business.com’s award-winning newsletter, and Groove Korea, South Korea’s largest English-print magazine. Today, he writes for dozens of brands, providing expert guides and informative articles on auto insurance, healthcare, recruiting technology, business, and more. Ali holds a Master of Fine Arts in creative writing from North Carolina State University.
Citations
What Is the Difference between No-Fault and At-Fault Insurance States? HG.org Legal Resources. (2023).
https://www.hg.org/legal-articles/what-is-the-difference-between-no-fault-and-at-fault-insurance-states-35152State By State Negligence Laws. The Law Offices of Maloney and Campolo. (2020, Feb 14).
https://www.maloneyandcampolo.com/state-negligence-laws/What states have no-fault insurance? Nationwide. (2023).
https://www.nationwide.com/lc/resources/auto-insurance/articles/no-fault-insurance-states
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