Who Pays for Car Accident Lawsuit - Sometimes It's Not So Simple

Understanding who pays for car accident damages has to do with the state where you live.  Laws vary a great deal between states, which has a bearing on who may be considered at fault and which insurance company is primary or secondary payer.  Another important aspect of who pays for car accident lawsuit has to do with "fault" and "no-fault" states.

No-Fault Insurance States

Twelve states have no-fault insurance.  This can make receiving immediate medical treatment following a car accident much simpler.  In no-fault states, either driver or passenger may receive immediate medical care because there is no time wasted on proving fault.  Each party's insurance company pays for covered medical bills and lost wages at a percentage and up to the limit of the insurance coverage.  The negligent person may then be held responsible for damages over and above the damages already paid by the injured person's insurance company.  No-fault is also referenced on the insurance policy as PIP (personal injury protection).

Fault States

In fault states, legal proceedings can take longer because the injured party must prove fault against the other driver before insurance will pay for the damages and the medical providers may be less inclined to provide medical care as the entire bill remains outstanding.

No-Fault vs Fault

Both systems have their advantages.  In an accident where no one is severely injured and the fault is very straightforward, no-fault works rather well, but in some accidents, the damage done by the person at fault may well exceed the established payouts offered by insurance coverage.

Some of the twelve no-fault states allow add-on coverage, which further complicates matters when a suit goes to court. 

Monetary Thresholds

Seven states have monetary thresholds that preclude an injured person from filing a suit and taking an injury liability case to court until expenses reach a certain amount.  There are four states that subscribe to a "serious injury threshold."  Although Florida does not require a threshold for bringing suit, it does limit what damages a Plaintiff is entitled to receive if the medical professionals do not indicate the Plaintiff suffered a permanent injury.

Some states even offer a choice of fault or no-fault, so it is easy to see how complicated insurance claims can be.  It is usually best to consult an attorney in matters concerning car accidents, preferably one familiar with the laws in the state that applies.

Get Help from a Spring Hill Car Accident Lawyer in Florida

If you or a loved one was injured in an auto or motorcycle accident, many questions will arise.  We are here to help and the consultation is always immediate and free.  Call Today!