In at-fault states, parties involved in a car accident can sue each other for their injuries and property damage in car accidents.
They must file their claim through the at-fault party’s car insurance. In some situations, the liable driver’s auto insurance policy may be inadequate to cover the costs of a victim’s damages. To recover the difference, the injured party may file a lawsuit against the liable driver individually.
In no-fault states, those injured in car accidents require drivers to file claims through their own car insurance policies for damages up to a certain amount.
Most drivers in no-fault states are legally required to carry personal injury protection car insurance or PIP. After an accident, those suffering injuries in an accident must file claims with their auto insurance carriers.
Regardless of fault, the injured party’s PIP coverage pays for their medical expenses and lost wages resulting from the accident. Compensation for property damage losses comes from comprehensive or collision coverage in car insurance policies.