“No-Fault Law” made simple

Dear Attorney Sol, 

Why did my insurance company pay for my medical bills if the accident was the other guy’s fault?!

Answer: This is a question asked by many people. There are multiple responses that can be made, but here is a simple answer.

When you're involved in a car accident, you might assume that the driver who is the one who caused the accident is the one who is responsible to pay for the medical care that became necessary because of the accident. That would mean that his or her insurance should have to pay for the medical bills. However, in many states, that's not how it works—at least, not at first. Instead, most people are surprised to learn, your own auto insurance is responsible for paying your medical expenses, regardless of who caused the crash. This system, often referred to as “no-fault law,” is usually justified by ensuring that medical bills, and often lost wages as well, get paid quickly without waiting for blame to be assigned.

One reason for this approach is quite simple: If everyone had to wait for the other driver’s insurance to take responsibility, accident victims could be stuck with unpaid bills for years. By requiring your own insurer to cover your initial medical costs or lost wages, $50,000 worth in some jurisdictions, the no-fault system provides a safety net that allows you to get thse payment without extra delay.

However, if your injuries are serious or require extensive medical care, the story doesn’t end there. In cases of “serious injury” or medical bills that exceed the amount paid by your own insurer, you still have the right to seek compensation from the driver who was at fault, usually to be paid by his or her insurance company. This can include additional medical costs, lost wages, and compensation for pain and suffering. Essentially, while your own insurance covers the immediate bills, you may still have the opportunity to recover for your “pain and suffering” from the other driver’s insurance company.

Understanding how the “no-fault” system works can help an accident victim navigate the aftermath of a crash with less stress. Knowing that your insurance will cover your expenses upfront can provide peace of mind, while also recognizing that you have legal options if your injuries are serious.

This is a simplification of the rule, and I would be happy to provide more information or answer any additional questions.