A No-Fault Accident Doesn't Guarantee a Settlement

No-fault accidents are becoming more common throughout the U.S. As auto accidents and ensuing litigation become the norm rather than the exception, a no-fault accident doesn’t necessarily guarantee that you will receive a settlement.

“No Fault” Explained

A no-fault accident is one in which the police have not identified a party as responsible for the accident. Police make this determination at the time of their report after being called to the scene. Identification of a party as responsible can be made on the accident report or by the officer issuing a ticket to the party looking as having caused the accident. For example, the driver of the car in the back of a rear-end accident would be at fault.

A no-fault accident can be designated such by the law or by the police’s failure to issue a ticket. A police officer will issue a ticket if he is required to do so. Many states have enacted no-fault laws for many types if not all auto accidents because it reduces the amount of time the officers must spend at the scene of the accident.

How No-Fault Affects Settlements

Just because a state has found it prudent to identify an accident as not being due to the fault of either party does not mean that the case cannot be litigated or denied coverage by an insurance company. Not designating a party as at fault at the scene of the accident does mean that such designation will be made at a later time, such as during settlement negotiations or during litigation.

This means that it is possible for an insurance company to later deny that a party was injured as a result of the accident, or that the party was not responsible for the accident. Because of this, you might not be offered a settlement you find acceptable or any settlement at all.

Comparative v. Contributory Negligence

Contributory negligence is the law that if the injured party was in any way responsible for his or her injury, her or she is prevented from recovering damages. This type of law is rare and is used by only five states and the District of Columbia. Comparative negligence, on the other hand, is a law that reduces the amount of damages that are recoverable by the percentage of injury caused by the injured party. For example, if the injured party is found to have contributed 10% to the accident and injury, any settlement would be reduced by 10%. There are variations within both negligence structures.

It is common for no-fault accident states to combine their law with a comparative or contributory negligence damage structure. This makes it more difficult to recover damages after such an accident.

Getting Legal Help

A no fault accident does not guarantee a settlement. In reality, such accidents are often more contentious. Therefore, it is imperative that if you have been injured in a no-fault car accident you seek legal assistance with your claim. Otherwise, you may not receive any settlement.