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Every U.S. state defines its own car insurance laws, which govern coverage requirements and your right to sue after an accident, among other things. There are two broad legislative approaches: at-fault and no-fault. Most states follow the at-fault framework, which requires drivers who cause accidents to pay for all damages and injuries.
A state’s at-fault designation has various implications, from the type of insurance you need to how claims are managed. Here’s a review of the details you need to know, including which states have at-fault laws and what it means for you when you take the wheel.
Learn more: How does pet insurance work? A complete guide.
At-fault states
Thirty-eight U.S. states have at-fault car insurance laws:
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Alabama
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Alaska
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Arizona
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Arkansas
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California
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Colorado
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Connecticut
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Delaware
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Georgia
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Idaho
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Illinois
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Indiana
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Iowa
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Louisiana
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Maine
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Maryland
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Mississippi
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Missouri
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Montana
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Nebraska
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Nevada
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New Hampshire
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New Mexico
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North Carolina
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Ohio
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Oklahoma
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Oregon
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Rhode Island
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South Carolina
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South Dakota
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Tennessee
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Texas
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Vermont
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Virginia
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Washington
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West Virginia
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Wisconsin
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Wyoming
Learn more: Minimum car insurance requirements in all 50 U.S. states
What does at-fault mean?
In at-fault states, whoever caused a car accident is financially responsible for the resulting injuries and property damages. If you suffer damages caused by someone else, you can file a claim with that person’s insurance. As part of the claims process, insurance companies investigate the accident details to determine what happened and identify who is at fault.
You can sue the other driver if there is not enough insurance or if you disagree with the insurance company’s claims decision.
Learn more: How much does car insurance increase after an accident?
Insurance requirements in at-fault states
Most at-fault states require minimum levels of property damage liability and bodily injury liability insurance. These coverages ensure you are financially able to pay for another person’s medical bills and property repair costs, up to your policy limits. You are still responsible for costs that exceed your insurance limits, however.
At-fault vs. no-fault state
No-fault states differ from at-fault states in two ways. First, no-fault states require drivers to carry insurance that pays for their and their passengers' medical bills after an accident. Second, no-fault states restrict the ability to sue other drivers for injury-related costs.
Property damage costs are the responsibility of at-fault drivers in all states. This is why nearly every state requires drivers to carry property damage liability insurance.
Learn more: What is liability car insurance, and how much do you need?
Contributory and comparative negligence
Because more than one driver can contribute to an accident, states specify how fault can be shared and how that affects who pays for damages. There are two main approaches.
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Contributory negligence: Contributory negligence laws prohibit you from recovering any funds from another driver if you shared any responsibility for the accident.
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Comparative negligence: Under comparative negligence laws, you can often pursue compensation from another driver for damages if you contributed to the accident. The amount available is adjusted based on your level of fault. For example, if you were 40% responsible for the accident, the other party may only be held accountable for 60% of your damages.
In at-fault states, negligence laws apply to property damage and bodily injury claims. In no-fault states, negligence laws apply to property damage claims and large personal injury claims that exceed lawsuit thresholds.
Pros and cons of at-fault car insurance laws
At-fault car insurance laws have advantages and disadvantages.
Pros
The pros of living and driving in an at-fault state include:
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If you are a victim, you can attempt to recover damages for your losses, including non-economic issues like pain and suffering.
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Auto insurance premiums in at-fault states can be lower.
Cons
The downsides to at-fault systems are:
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Claims can take longer to resolve because insurance companies must determine who caused the accident.
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The potential for lawsuits in at-fault states can increase accident costs.
Learn more: How to protect yourself from being sued after an accident
Choosing insurance limits in at-fault states
When you live in an at-fault state, your bodily injury coverage limit is an important financial protection. This is because medical costs can be the largest expense after an accident. According to Insurance Information Institute data, the average cost of bodily injury claims in 2023 was more than $26,000. The average property damage claim was much lower at $6,551. In severe accidents, injury and property damage costs can be much higher than these averages.
If your bodily injury liability insurance limit is too low, you will pay out-of-pocket for the overage. With a judgment against you, the other party can put a lien on your home, take funds from your bank accounts, or possibly garnish your wages.
You can minimize the risk of high out-of-pocket costs by carrying high liability limits. Financial experts typically recommend liability limits at least as high as your net worth, which is the value of your assets less the value of your debts.
Learn more: How much car insurance do I need?
At-fault states FAQs
What makes a state a no-fault state?
A state is no-fault when it requires drivers to self-insure for injury-related costs resulting from car accidents. Personal injury protection (PIP) insurance provides this coverage. No-fault states also restrict your right to sue other drivers for injury-related costs.
Am I at fault if I hit a car in front of me because he slammed on his brakes suddenly?
In rear-end collisions, the rear driver is generally assumed to be at fault for following too closely. There can be exceptions, however. A lawyer can help you determine if the front driver’s actions contributed to the accident.
Learn more: What to do after a car accident: Your step-by-step guide
Can both parties be at fault in a car accident?
Two drivers can share fault in a car accident. The state laws specify how shared fault affects financial responsibility for resulting damages.
Tim Manni edited this article.
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