According to Nolo’s article, “Car Accidents In ‘No-Fault States’,” some states operate under a no-fault car insurance system, which changes how accident claims are handled. In these states, drivers are generally required to carry no-fault insurance—also known as personal injury protection (PIP)—and must first turn to their own policy for medical expenses and certain other losses after a crash, regardless of who caused it.
This system is designed to streamline the claims process and reduce the number of lawsuits. However, there are limits. In most no-fault states, an injured person can only file a lawsuit against an at-fault driver if specific legal thresholds are met. These thresholds vary but often involve either a dollar amount for medical expenses—such as exceeding $5,000—or meeting a definition of “serious injury” under state law. Only when these conditions are met can a victim step outside the no-fault framework to pursue a liability claim for additional damages like pain and suffering.
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Article with all rights reserved, courtesy of Alllaw — https://www.alllaw.com
