What happens after a no fault car accident?
Asked by: Ms. Neha Monahan | Last update: December 28, 2025Score: 4.8/5 (7 votes)
What happens after a no-fault accident?
A no-fault state is one where drivers involved in a car accident are required to file claims with their own insurance companies, regardless of who caused the accident. This system relies on Personal Injury Protection (PIP) coverage, which compensates for medical expenses and lost wages up to a state-determined limit.
Who pays for car damage in no-fault state?
In no-fault states, each party carries insurance that pays for their own injuries, while the at-fault party typically pays for everyone's property damage.
Do you get money from no-fault insurance?
So let's start with a basic definition: no-fault insurance, sometimes referred to as personal injury protection insurance (PIP), can help cover you and your passengers' medical expenses and loss of income in the event of a covered accident, regardless of who is found at fault.
What does it mean that KY is a no-fault state?
The state of Kentucky is called a no-fault state because of a law stating that each driver in the state of Kentucky has to file a claim with their insurance company first to get compensation for medical bills and other financial losses caused by the accident according to their own insurance policy.
What Happens In A No-Fault Accident In Michigan? | Michigan Auto Law
Who pays for car damage in Kentucky?
If another driver is responsible for causing a car accident and the subsequent damage that occurs to your vehicle, then the at-fault driver's insurance is the primary source of compensation recovery. Every driver in Kentucky is required by law to carry $10,000 worth of property damage liability insurance.
How does a no-fault insurance state work?
What does a no-fault insurance state mean? No-fault insurance refers to how injuries are covered by car insurance. In a no-fault insurance state, if you're injured in an auto accident, you would file a claim with your own insurance company to pay for related medical costs. This is regardless of fault.
What are the cons of no-fault insurance?
CONS: Fewer legal options: In most states, drivers with no-fault policies are restricted from suing unless the injuries meet a certain severity threshold. Potentially higher premiums: Some say no-fault insurance may lead to higher premiums due to more claims being filed.
Will insurance pay out if it was my fault?
Who pays for an at-fault accident? If the situation is clear-cut, or one party admits that they caused the accident, the at-fault driver's auto insurance should pay for any property damage and medical bills, and in some cases compensation for other damages, such as pain and suffering.
What to do when you're in a car accident and it's not your fault?
- Get out of harm's way.
- Check for injuries.
- Call the police.
- Gather information at the car accident scene.
- Report the crash to your insurance company.
- Understand insurance coverage.
- Get medical treatment.
- Contact a car accident lawyer.
Can I be sued for a no-fault car accident?
The insurance contracts in no-fault states ensure coverage no matter who bears responsibility for the car accident. Generally, all parties in the accident may receive funding to help them recover, thus limiting the option for a driver to be sued for a no-fault accident.
Does a no-fault accident affect insurance?
In addition, certain states, such as California and Oklahoma, don't allow insurance companies to increase rates after a non-fault claim.
Should I file a claim if I'm not at fault?
Always File a Claim, Regardless of Who Was At-Fault
One of the primary questions we receive from clients who have been in an accident is whether they should report the accident to their own auto insurance carrier, particularly when the accident was not their fault. And the answer to that question is: always.
How long does a no fault settlement take?
Auto accidents generally take anywhere from 6 months to 3 years to settle in California. Car accidents generally settle faster than other kinds of personal injury claims. This is because car accidents tend to cause less severe injuries than certain other types of cases, like medical malpractice.
Do I call my insurance if I'm not at fault?
Yes. Regardless of fault, it is important to call your insurance company and report any accident that involves injuries or property damage. It is a common myth that you needn't contact your insurance company if you aren't at fault.
How long does a no fault accident stay on your record?
In California, accidents typically stay on your driving record for a period of three years from the date of the accident. During this time, the accident will be considered a public record and, therefore, accessible by insurance companies, potential employers, and law enforcement agencies.
How much will my insurance go up if it was my fault?
If you cause a car accident, your insurance rates will go up by an average of $87 per month for full coverage. Where you live has a big impact on how much you'll pay for insurance after a car accident. California has the largest rate increase. An accident in California nearly doubles full coverage insurance rates.
What happens if no one is at fault in an accident?
You May Be Able to Turn to Your Own Insurance Policy
PIP can come into play if nobody is at fault in a car accident. Depending on the type of coverage selected, you could be entitled to compensation that covers: Medical expenses you have up to three years after the accident. 85% of wages you lost due to the accident.
How do insurance companies decide how much to pay out?
The insurance company assigns a claims adjuster to investigate the claim, gather evidence, and determine the extent of the victim's losses. The claims adjuster calculates an initial settlement offer based on their assessment of the victim's damages and the available insurance coverage.
What are the advantages of the no-fault system?
In a no-fault insurance policy, the insurance company provides compensation for medical bills, lost wages, and other types of damages. Other benefits of no-fault insurance include a simplified claims process and reduced legal costs.
Is no-fault insurance expensive?
No-fault insurance is more expensive than insurance in at-fault states because it includes personal injury protection (PIP) in addition to basic liability insurance.
Why are no-fault states bad?
Higher Premiums
Auto insurance premiums in no-fault states tend to be considerably higher than in fault states. If you get injured in a car accident and file a claim, your premiums might increase even more, even though you are the victim, not the at-fault party.
What does "no-fault insurance" mean in KY?
In Kentucky, the no-fault car insurance law means that you will file a claim with your own car insurance provider after a car accident whether or not you caused the crash. Your own car insurance policy will cover your damages without requiring proof of someone else's fault.
What happens after a car accident in Kentucky?
Contact the Police
If a motor vehicle collision in Kentucky results in bodily harm or death or renders your vehicle inoperable, you must report the incident to the authorities. You are required to contact the Kentucky State Police if there is damage to vehicles or property that totals more than $500.
How much will the insurance company pay for the damage to the car?
A typical insurance payout for a totaled car will be for its actual cash value. It's generally determined by factors such as year, make, model and mileage. Simply put, it's what your car could have been reasonably sold for before the damages.