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Q: What is the difference between a ‘no fault’ and an ‘at-fault’ state?

A: Simply put, ‘no fault’ means that both the person who caused the accident and the victim are responsible for paying their own losses. This is true no matter who caused the accident and is often required by states that wish to reduce the number of lawsuits being filed. Certain states carry ‘no fault’ laws that also have a threshold limit, which means that losses are the responsibility of both the individual who caused the accident and the victim unless the damage amount exceeds a certain dollar amount that is determined by the state’s threshold law.

An ‘at-fault’ state requires that the individual responsible for the accident is also responsible for the cost of all damages sustained by everyone who was involved. 

Insurance companies can often provide various types of coverage to help their customers ensure that there will be some type of compensation in the event that they are involved in an accident, regardless of whether they are in a ‘no fault’ or ‘at-fault’ state.





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