Car accidents occur on a daily basis around the nation, and the laws about fault and liability may vary significantly depending on the state you’re in.
That’s why understanding these differences is so important for any person going through an ordeal like that, most especially for those who navigate accident claims.
This article is a simplified comparative analysis, which is intended to explain how car fault laws are structured within major cities of the U.S. in a way that highlights how these laws affect victims in seeking compensation.
At-Fault and No-Fault Systems: What’s the Difference?
Two basic systems of fault determination in car accidents exist in the United States. If the fault system names aren’t descriptive enough, here’s an easy explanation. In an at-fault system, that’s where the driver against whom the accident has been caused would be liable for damages, as victims may sue the at-fault driver's insurance or take further legal actions if needed.
On the other side of the coin, regardless of whether both parties caused the accident or a single one person caused the accident, is that the no-fault system forces grounds for coverage by each party's insurance.
So, which one is better for you? Well, the answer depends on what’s important to YOU. At-fault systems may (or may not) offer more legal recourse for the victims. No-fault systems, on the other hand, are designed to speed up and simplify the whole process alongside the payouts.
Major U.S. Cities Using the At-Fault System
Majority of the biggest cities in the U.S. strictly follow the at-fault model. Among the many are Chicago, Los Angeles, Houston, Phoenix, and Atlanta. For example, Illinois has a modified comparative negligence rule, making it impossible for victims to recover their damages/compensation when the fault exceeds 50%.
Chicago (IL): Accidents in Chicago can be really tough to handle because of the heavy traffic and (often) terrible weather. Drivers accustomed to such a relatively specific environment should seek professional legal help – an attorney versed solely in car and personal injury cases. Find the best car accident attorney in Chicago and consult them on what to do; that’ll present a huge difference when handling claims under Illinois laws.
Los Angeles (CA): In California, the situation is significantly better. The victims can recover damages even if they are 99% at fault. Sure, their share of contribution to fault will reduce the total amount of compensation received, but they’ll get SOME form of compensation, which adds a certain layer of security.
Houston (TX): Texas is a modified comparative negligence state with a level of 51% for the comparative negligence threshold. This modification makes a difference in claim outcomes, especially if there is a complex multi-vehicle accident in question.
Atlanta (GA): Similar to Illinois, Georgia state also applies a modified comparative negligence rule but the difference is the credit limit which is 50%. That’s why legal representation in Atlanta is worth it (and always recommended) because of the heavy traffic and many highway collisions.
Major U.S. Cities Using the No-Fault System
Like with the at-fault system, there are many cities that are applying the no-fault laws. The biggest are New York, Miami, and Detroit. In these jurisdictions, drivers usually rely on personal injury protection coverage to handle medical expenses and lost wages.
While this system is quite good when it comes to minor accidents, but because of this it’s also limited; a victim cannot file suit unless the injury satisfies a threshold defined by severity.
New York City (NY): The no-fault threshold in New York City includes medical costs that exceed $50,000 or permanent injury. It suggests that lawsuits can be filed when severe damages have occurred.
Miami (FL): In case of no-fault in Florida, lawsuits (usually) require a much lower threshold than New York requirements. Regardless, it’s still quite complex when you’re trying to seek compensation outside insurance claims. This, as you can imagine, complicates matters for all victims seeking full recovery/compensation for their losses.
Detroit (MI): What’s interesting about Michigan is how it has a distinct variation from the rest of the U.S. in terms of a no-fault system. There’s a particular aspect of their system that requires a lifetime unlimited benefit for medical expenses related to accidents that come under specific insurance policies.
Insurance Requirement Comparison Across Cities
Depending on insurance requirements in certain cities or states, compensations for victims recovering their losses are significantly different.
Here’s a comparison of the minimum insurance requirements for bodily injury liability across some of the states:
| City/State | Bodily Injury Liability (Per Person) in USD | Bodily Injury Liability (Per Accident) in USD | Percentage Difference (Compared to Chicago, Illinois) |
| Chicago (Illinois) | 25,000 | 50,000 | Base (0%) |
| New York (New York) | 25,000 | 50,000 | 0% |
| Houston (Texas) | 30,000 | 60,000 | +20% |
| Phoenix (Arizona) | 25,000 | 50,000 | 0% |
| Miami (Florida) | 10,000 (PIP only, no-fault system) | n/a | *-60% (PIP coverage only) |
| Detroit (Michigan) | 50,000 | 100,000 | +100% |
Conclusion
After reading all the differences in fault laws for driver accidents across the U.S. and insurance requirements, it is clear that understanding those differences and regulations by states is vital for drivers in any U.S. city.
But, even if the laws are not ideal for your case, working with an experienced attorney can help you not only navigate all the complexities of claims, but also to secure a fair settlement.
