What is the non fault claim process?
Asked by: Jose Runte | Last update: December 13, 2025Score: 4.7/5 (10 votes)
What happens when you make a no-fault claim?
A 'non-fault' claim will generally lead to the customer's insurer paying out on the claim and being able to recover those costs from a third party and/or their insurer. Sometimes the customer's insurer doesn't need to make any payments as this is done by the third party insurer directly.
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.
How long does it take to settle a no-fault claim?
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.
Is no-fault insurance a good thing?
Generally speaking, no fault insurance is a good thing because it reduces how often accidents end up in court, which adds expenses and (more importantly) delays compensation for people who suffer losses in accidents.
Auto Insurance Claims Process: Not-At-Fault Accident
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.
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.
Will my insurance go up if I file a claim and its not my fault?
Some may raise your premiums by 10 percent, while others may charge you only 2 percent more. In addition, certain states, such as California and Oklahoma, don't allow insurance companies to increase rates after a non-fault claim.
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 gets the insurance check when a car is totaled?
If you own the car without any loans or liens, you will receive a check for the value assessed by the insurance company. If there is a loan, the check usually goes first to the leasing company or the lender. If you owe money on the vehicle, you should notify the lending company that your car has been totaled.
Who pays deductible in no-fault accident?
Policyholders will generally pay the deductible before comprehensive coverage kicks in. Liability insurance. Liability coverage, which is required in California, doesn't involve deductibles but covers damages the policyholder causes to other vehicles, drivers, or property. Uninsured motorist coverage.
Should I let my insurance know if it wasn't my fault?
Yes, it is generally advisable to notify your insurance company even if the accident wasn't your fault. Most insurance policies require policyholders to promptly report any accidents or incidents, regardless of fault.
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.
Will insurance increase after a no-fault accident?
If you weren't at fault for the accident, then we have some good news. California law will prohibit an insurer from increasing your insurance rate if you were not at fault for a crash. Many different laws are in play, but this summary from the California Department of Insurance is helpful.
Do you have to pay excess on a non-fault claim?
To claim, your insurer will require you to pay the total excess. To make a non-fault claim, insurers require non-fault drivers to pay their total policy excess. This total amount, combining your compulsory and voluntary excess, can be an unexpected financial burden.
How do I make a not at fault claim?
Making a not-at-fault claim
You'll need to collect the details of the other driver involved when making your claim; this will generally include: The names and contact details of the other driver. The other driver's insurer and policy details. The car model and registration number of other vehicles involved.
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.
Can you get compensation if the accident was not your fault?
How Does Insurance Work When It's Not Your Fault? In California, you can file a claim directly with the at-fault driver's insurance company. You must provide evidence of the accident and documentation of your damages.
Should I file an insurance claim if I am at fault?
If you damage someone else's vehicle during a significant collision, and you're at fault, you should always file a claim.
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.
What is accident forgiveness?
What is Accident Forgiveness? Available in select states, Accident Forgiveness is an auto insurance coverage option that potentially helps you avoid a rate increase after your first at-fault accident. Others on your policy can also benefit from Accident Forgiveness. But it can only be used once per policy.
How does insurance work if it's not your fault?
Who pays in a no-fault accident? If there's an accident between two drivers, each party's PIP coverage typically pays for their respective medical bills and/or wage loss up to their policies' limits, no matter who caused the accident.
Is it better to use your insurance or theirs?
After a car accident, you should notify your insurance company and file a claim, and not deal with the other driver's insurer. Except in rare circumstances, it is not wise to contact them. Your insurance company represents you, and the other driver's insurance company represents them.
Why do I have to pay deductible when not at fault?
Insurance companies collect deductibles every time they settle a claim, so they don't care who was at fault. You would not be at fault if your car was stolen from a secure facility, but you would still pay a deductible if you filed an insurance claim.