If you have ever been involved in a car accident, you have likely dealt with an insurance company. Insurance coverage can be used to pay for many types of losses after an accident, such as medical bills, lost wages, and even pain & suffering. However, the types of damages that you may be able to recover can depend on who was at fault.
Some states follow a no-fault insurance system, while others use at-fault insurance rules. Dive into all the details below to learn more about the differences between no-fault and at-fault insurance.
What Is No-Fault Insurance?
A no-fault insurance system is one in which your own Personal Injury Protection (PIP) coverage pays for your medical expenses and lost wages regardless of who caused the accident. In no-fault states, drivers are required to carry PIP coverage. Some states also set minimum coverage limits, such as $10,000 of PIP coverage.
In no-fault insurance states, accident victims generally cannot sue the other driver for their damages. However, there are some exceptions to that rule. If your injuries are severe or your losses exceed your PIP coverage limits, you may have the right to sue the driver who caused the accident to recover additional damages.
What are The Benefits of a No-Fault Insurance System?
No-fault insurance systems have some benefits. One of the biggest benefits is that victims get quicker and easier access to compensation for their damages. There is no requirement to prove fault, so insurance companies typically pay these claims much faster.
Additionally, no-fault insurance can help keep the civil court system running efficiently. It can help keep frivolous or unnecessary lawsuits out of the court system because victims can get compensation from their own insurance coverage.
What Does PIP Cover?
If you are hurt in a car accident, you would file a claim with your own PIP coverage. PIP coverage generally only pays for medical expenses and lost wages. In some states, PIP only covers a portion of your lost wages and not 100% of them.
For example, PIP coverage in some states will cover 80% of your lost wages while you are out of work due to your injuries.
What Is At-Fault Insurance?
An at-fault insurance system is one in which the at-fault driver is responsible for the damages they cause. Most states follow an at-fault system, and these states allow you to sue the at-fault driver for your damages. Once you have established liability, you can recover compensation from the other driver or their insurance company.
Drivers in at-fault states are required to carry liability insurance. This insurance pays for any damages the driver causes. This includes both property damage and injuries. Keep reading below to learn more about the types of damages that may be available in at-fault states.
Types of Damages Available in At-Fault States
At-fault states allow you to sue the at-fault driver for all your damages. This includes both economic damages and non-economic damages.
Economic Damages
Economic damages are used to compensate the victim for all their financial losses.
Some common examples of these damages include:
- Medical bills
- Current and future lost wages
- Lost benefits
- Out-of-pocket expenses
- Physical therapy
- Medical equipment or devices
- Prescription or over-the-counter medication
- Property damage
Putting a value on these damages is usually pretty straightforward.
Non-Economic Damages
However, it can be a little more difficult to quantify non-economic damages, which compensate victims for their physical and emotional pain.
Some common examples include:
- Emotional distress
- Pain and suffering
- Diminished quality of life
- Loss of consortium
- Loss of love and companionship
- Permanent scarring or disfigurement
- Loss of enjoyment of life
Non-economic damages are often worth more than the financial losses in a case. This is why opening the door to these damages can greatly increase the value of your personal injury claim.
Is Louisiana a No-Fault or At-Fault Insurance State?
Louisiana is an at-fault, or fault-based, state. This means that you must prove that the accident was the other driver’s fault to recover compensation for your injuries. Injured victims in Louisiana have a right to sue the at-fault driver for their damages.
In most cases, victims in Louisiana have two years from the date of their accident to file a claim for damages. Missing this deadline can completely bar you from recovering any compensation for your injuries.
Since this deadline can be affected by some special circumstances, you should always seek the help of an experienced lawyer to ensure you do not miss your chance to recover compensation.
Contact the Baton Rouge Personal Injury Lawyers at Mansfield Melancon Car Accident and Personal Injury Lawyers for Help Today
If you have been hurt in a car accident in Baton Rouge, contact the experienced team at Mansfield Melancon Car Accident and Personal Injury Lawyers. We can answer all your questions about the at-fault rules in Louisiana and handle every aspect of your legal claim. Contact us today at (225) 263-4787 to schedule a free consultation with a Baton Rouge personal injury attorney.