Car accidents happen daily, but how they are handled varies depending on whether the state follows at or no-fault insurance laws. These terms may seem confusing, but understanding the distinction is important when dealing with a car accident claim, whether it’s for medical expenses, vehicle repairs, or recovering damages.
In at-fault states, the driver who caused the car crash is responsible for covering the costs of injuries and property damage through their insurance. On the other hand, in no-fault states, each driver’s insurance covers their own medical expenses and lost wages, regardless of who caused the accident. This primary difference affects how claims are filed, how fault is determined, and whether you can sue the at-fault party for additional compensation.
This guide will explain how at-fault and no-fault insurance policies work, their impact on the parties involved, and the steps you may need to take after a car accident.
What Is At-Fault Insurance?
In at-fault insurance states like Nevada, the driver responsible for causing the car crash (the at-fault driver) is liable for the injured party’s damages. If you’re injured or your vehicle is damaged, you typically file a claim with the at-fault driver’s insurance company. Damages covered under an at-fault insurance policy may include:
- Medical expenses: Costs for treating injuries from the crash.
- Lost wages: Compensation for time missed from work due to your injuries.
- Property damage: Repairs or replacement of your vehicle and other damaged property.
- Non-economic damages: Pain and suffering, emotional distress, and similar losses.
The injured party must prove the other driver caused the accident to recover compensation. This is done by gathering evidence such as the police report, witness statements, and photos from the accident scene.
How Does No-Fault Insurance Work?
In no-fault states, drivers turn to their insurance provider after a car accident, regardless of who caused the crash. Drivers in these states must carry personal injury protection (PIP) as part of their auto insurance policy. This coverage pays for medical bills and lost wages up to a specific limit.
The primary difference between no-fault and at-fault insurance is that you don’t need to prove the other party was responsible for receiving benefits under your PIP coverage. However, no-fault insurance states often limit your ability to sue the at-fault party unless you meet a serious injury threshold. This threshold varies by state but generally includes severe injuries like disfigurement, permanent disability, or extensive medical expenses.
Nevada: An At-Fault Insurance State
Nevada operates as an at-fault insurance state. This means drivers must carry property damage liability insurance and bodily injury coverage to protect others if they cause an accident. The minimum insurance requirements in Nevada include:
- $25,000 for bodily injury or death to one person.
- $50,000 for bodily injury or death to two or more people per accident.
- $20,000 for property damage.
If you’re injured in a car accident in Nevada, you can file a claim with the at-fault driver’s insurance company or sue the at-fault party for damages. To recover compensation, you must show the other driver was negligent and that their actions caused your injuries. Common evidence used to prove fault includes traffic laws, eyewitness testimony, and police reports.
How Is Fault Determined in Nevada?
Nevada follows a modified comparative negligence rule. This means you can recover compensation even if you were partially at fault for the accident, as long as your share of fault doesn’t exceed 50%. If you are 30% responsible for the crash, for example, your compensation would be reduced by that percentage. This system ensures fairness when multiple drivers share responsibility for a car crash.
At-Fault vs. No-Fault: What’s Better?
There’s no one-size-fits-all answer. At-fault systems like Nevada’s allow injured parties to pursue full compensation for their losses, including non-economic damages like pain and suffering. However, proving fault can make the claims process longer and more challenging.
On the other hand, no-fault insurance offers quicker payouts for medical bills and lost wages through your policy. Still, it limits your ability to sue the at-fault driver unless you meet strict injury thresholds.
What To Do After a Car Accident
If you’re in a car accident, taking the proper steps can protect your ability to recover compensation. Here’s what to do:
- A police report is essential for determining fault.
- Take photos of the vehicles involved, injuries, and road conditions.
- Get the other driver’s contact and insurance details.
- Even minor injuries can worsen over time.
- A personal injury attorney can help you navigate the claims process and recover the compensation you deserve.
Schedule a Free Consultation With THE702FIRM Injury Attorneys
At THE702FIRM Injury Attorneys, we understand how overwhelming a car accident case can be. Our experienced attorneys are here to help you prove fault, deal with insurance companies, and fight for the compensation you deserve. Call us today at (702) 478-2266 or schedule a consultation online. We’re committed to helping Nevada drivers recover from accidents and stay on track.
