No-fault and at-fault insurance systems determine how car accident claims are handled after a crash. In a no-fault system, each driver’s own insurance typically covers their injuries regardless of who caused the accident. In an at-fault system, the driver who caused the crash is responsible for paying for the damages suffered by others.
Missouri follows an at-fault system, meaning the driver who causes a collision in Columbia or anywhere else in the state can be held liable for resulting injuries and property damage.
How At-Fault Insurance Works
The driver who caused an accident is financially liable for the other driver’s injuries and property damage in at-fault states like Missouri.
After a crash, victims have several options for seeking compensation:
- File a claim with the at-fault driver’s liability insurance
- File a claim with their own insurance company (which may then seek reimbursement from the at-fault insurer)
- File a personal injury lawsuit directly against the at-fault driver
Understanding how these options work can help you choose the most effective path for recovering compensation after an accident.
What Kinds of Compensation Are Available to Accident Victims in an At-Fault System?
At-fault states allow accident victims the right to pursue compensation for injuries and losses. This compensation covers economic damages, such as loss of income, out-of-pocket expenses, and medical expenses.
It also includes non-economic damages for pain and suffering. There is no threshold requirement for filing a claim. Even relatively minor injuries can support a claim against the at-fault driver.
Missouri uses a pure comparative fault system. This means a court will assign a percentage of fault to each party involved in the accident. Your compensation is reduced by your percentage of fault, but you can still recover damages even if you are mostly at fault.
How No-Fault Insurance Works
In no-fault states, each driver files a claim with their own insurance company after an accident. Generally, no-fault insurance is referred to as Personal Injury Protection (PIP) coverage. PIP typically pays a portion of the insured’s lost wages, medical bills, and certain other costs up to the policy limits. PIP pays these costs for the insured, even if the insured caused the accident.
Of course, there is a trade-off in no-fault states. Typically, a driver cannot sue the other driver for pain and suffering unless their injuries meet a specific threshold of severity. Each no-fault state sets its own threshold. Injury threshold may be based on the type of injury, the cost of treatment, or both.
Key Differences Between the Two Systems
The practical differences between no-fault and at-fault insurance affect how quickly you receive compensation, how much you can recover, and who pays for your damages:
- Who pays: In a no-fault state, each driver looks to their own insurance coverage no matter who caused the accident. A driver’s liability insurance carrier pays claims in an at-fault state when a driver causes the crash.
- Right to sue: Accident victims have the right to sue responsible parties in at-fault states. Victims in no-fault states must meet specific conditions based on state law to pursue a lawsuit.
- Speed of payment: Insurance companies often process no-fault claims quickly as fault is not a factor. Accident claims in at-fault states can take longer, especially if liability is disputed.
- Pain and suffering: At-fault states allow victims to recover non-economic damages like pain and suffering in all cases. No-fault states limit these claims to severe injuries.
- Insurance costs: No-fault states tend to have higher insurance premiums because every driver must carry PIP coverage in addition to liability insurance.
Currently, about a dozen states use some form of no-fault insurance, including Florida, Michigan, New York, New Jersey, and Pennsylvania. The remaining states, including Missouri, follow the at-fault model.
What Missouri Drivers Need to Know
Missouri requires all drivers to carry minimum amounts of liability insurance:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 for property damage
Because Missouri is an at-fault state, accident victims can pursue compensation from the at-fault driver for all damages, including pain and suffering. There is no injury severity threshold to meet before filing a lawsuit. However, the at-fault driver’s insurance company will typically try to minimize the payout or deny the claim altogether.
PIP coverage is available in Missouri as an optional add-on to your auto insurance policy. While not required, PIP can provide faster access to benefits for medical expenses and lost wages, regardless of who caused the crash.
How Fault Is Determined After an Accident in Columbia
Determining fault after a car accident in Columbia, Missouri, involves numerous steps. Examples include reviewing police reports and witness statements. Gathering physical evidence and performing an accident reconstruction analysis.
Insurance adjusters will conduct their own investigation, but their goal is to minimize the company’s payout. Consulting a car accident lawyer can help protect you from being unfairly blamed for an accident you did not cause.
Missouri’s pure comparative fault system means that even if you share some blame for a crash, you can still recover compensation. Your recovery is simply reduced by the percentage of fault assigned to you. For example, if your damages total $100,000 and you are found 30% at fault, you would receive $70,000.
Contact the Columbia Car Accident Lawyers at Schultz & Myers Personal Injury Lawyers for Help Today
Knowing whether you live in a no-fault or at-fault state can make a major difference after a collision. Because Missouri follows an at-fault system, injured victims in Columbia may have the right to pursue compensation from the driver who caused the crash.
Schultz & Myers Personal Injury Lawyers helps accident victims understand their rights, deal with insurance companies, and pursue fair compensation for their injuries and losses. For more information, contact an experienced Columbia car accident lawyer at (314) 444-4444 at Schultz & Myers Personal Injury Lawyers today.
