What Happens If an Auto Accident Is My Fault?

Auto accidents raise the issue of injury and property damage liability.

Whenever an auto accident occurs, a number of liability issues arise. However, there are two different auto insurance systems used in the United States. These systems determine what will happen after a collision.

Tort States

In tort states, who is responsible for an accident will be determined and the at-fault driver is held accountable for any bodily-injury liabilities or damage to the property of third-party motorists. All tort states make liability coverage mandatory on auto insurance policies. According to the Rocky Mountain Insurance Information Association website, there are 38 tort states in the United States, but only 12 no-fault states.

No-Fault States

The no-fault system in place in other states was implemented to minimize the number of lawsuits that were slowing down the court system. In no-fault states, who is at fault in an accident is not a consideration; all motorists have to make claims on their own auto insurance policies. Kansas, Michigan and Utah are all no-fault states.

Auto Accident Implications

In tort states, an at-fault driver can expect to see his future auto insurance premiums rise considerably because of the higher risk he represents in the eyes of auto insurance companies. In no-fault situations, premiums rise based on the rating factors used in an individual state. These factors can include driving histories, age, gender and the type of vehicle being driven. Credit scoring is also being used to influence auto insurance rates.

References

• Tort Auto Insurance Basics
• A Brief Explanation of Michigan No-Fault Auto Insurance