Accident Lawyer Advice – The Difference Between Fault and No Fault Accidents

An accident attorney needs to know what type of insurance you have in order to determine what steps you need to make next. Fault and no-fault insurance each have their own set of rules and greatly determine what kind of financial losses you can collect on in the event of an auto accident. The particulars of these laws change from state to state, but the basics remain the same.Fault Insurance

This insurance follows a traditional set of personal injury law. The insurance companies and likely your accident lawyer will examine the facts surrounding the incident to determine who caused or was ‘at fault’ for the resulting injuries and damage. They come up with a percentage of responsibility that will then translate into a dollar figure for both parties. A portion of the amount ordered will be for damages and the rest will cover any injuries sustained during the accident. The insurance company for the individual found ‘at fault’ then pays the balance.No Fault Insurance

No fault insurance means exactly what it says — neither side is said to be responsible in the eyes of the insurance companies. Each person receives compensation from his or her own insurance company eliminating the need for an accident lawyer. In some instances, however, this may also mean that you and your accident attorney cannot sue the opposing party either.How They Are Regulated

Regardless of the insurance you or the opposing party holds, the state in which the incident occurred will determine the rules for compensation. If the accident occurred in New York, but you and the opposing party are from different states, the laws in the state of New York would still govern over incident. This leaves your accident attorney and you looking at one of four possible options. The state might follow traditional laws and fault insurance where you, your accident lawyer, and the opposing party will have to find out who is at fault and possibly look at taking legal action.A state may take one of three stances on no fault insurance. One system requires both sides to pay for their own expenses through their insurance policy, but still allow you to seek legal action with the help of an accident attorney. Other states may adopt no fault insurance, but do not allow you and your accident lawyer to sue the opposing party. The third option allows you to sue in circumstances, but still requires the insurance company to pay their own policyholder.Regardless of whether you live in Miami or Atlanta, accident attorney and law professionals will know the law. The state can control the amount each side can receive. This includes the amount you are insured for and may specify a specific dollar amount for coverage. Other states will base their limits on a case-by-case basis. They might cover the entire cost except for when one party was driving illegally, was seriously injured, or there was excessive property damage. By meeting with your accident lawyer, you can find out what your options are and what the next step should be.