Understanding At-Fault vs. No-Fault Car Insurance
Oklahoma uses an at-fault system for auto insurance coverage. In our state, the negligent driver who causes a car wreck (or, more likely, their insurance company) must pay for all damages that occur as a result. These damages may include property damage, medical bills, lost wages, and more. Therefore, determining negligence often involves a hard-fought battle since so much is at stake.
Keep reading to learn more about the differences between at-fault and no-fault car accident claims as well as how these differences could impact you if you sustain injuries or property damage in a wreck due to someone else’s negligence.
What’s the Difference Between At-Fault and No-Fault Car Insurance?
Like many other states, Oklahoma operates on an at-fault system of insurance coverage for motor vehicle accidents. This system often yields results that most people would call fair and equitable. However, at-fault systems can also slow down claims and potentially result in increased premiums for at-fault drivers. As we mentioned earlier, there’s a lot at stake for the plaintiff and the defense in an at-fault system, which results in tens of thousands of car wreck lawsuits in Oklahoma every year.
To cut down on lawsuits, many states have adopted no-fault auto insurance systems. Twelve states currently use no-fault systems, including:
- New Jersey
- New York
- North Dakota
When a collision occurs in these states, drivers automatically receive compensation for their damages and medical costs from their insurance company regardless of who caused the wreck. Drivers in these states must carry an additional type of coverage called personal injury protection (PIP) coverage, which translates to higher insurance premiums for everyone.
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Why Purchase Catastrophic Auto Insurance Coverage?
Drivers in at-fault states may face a lawsuit if they commit an act of negligence behind the wheel, which is why many people choose to purchase additional liability coverage in the form of a catastrophic auto accident policy. Catastrophic coverage helps protect at-fault drivers from being held personally liable for damages if their driving results in a severe injury or even a fatality.
For example, imagine an at-fault driver with catastrophic coverage causes an accident that results in the victim suffering a debilitating injury. In this case, the catastrophic insurance policy will provide extra reimbursement to cover the victim’s medical bills, lost wages, and pain and suffering while protecting the policyholder from some or all of the liability costs.
People who have lengthy commutes or who frequently drive in high-traffic areas are more likely to purchase additional catastrophic coverage since their chances of being involved in a severe crash are higher than those of the average driver.
If you’ve been injured in a wreck and you’re not sure about which types of coverage may apply in your situation, contact the AMA Law team to get help and advice during a free initial consultation.
Injured in a Car Accident in Oklahoma? Contact AMA Law Today
If you or a loved one has suffered injuries in a car accident because of another person’s negligence, you may be eligible for compensation. The legal team at AMA Law has years of experience negotiating favorable car wreck settlements and litigating successful car accident lawsuits. We can help you navigate potential insurance coverage issues and answer any other questions you might have related to car accident claims as we guide you through the legal process.
To get a free, no-risk assessment of your case from an experienced attorney from the AMA Law team, contact us today. You can call us at (405) 607-8757 or complete this brief form and we’ll respond promptly.
Statutes of limitation apply to all car accident claims in Oklahoma, so please don’t wait to take action regarding your case.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.