"At fault" and "No fault" Auto Insurance
In case of a car accident, at fault vs. no fault auto insurance will determine who will pay for the damages and sustained injuries of the involved parties.
At fault car insurance
This policy will help the “at fault” driver to pay for the damaged property and medical bills of the injured party.
According to the California Department of Vehicles (DMV), most states require drivers to have a liability insurance coverage to help them pay for the injuries and damages they have caused due to their negligence. Meanwhile, some jurisdictions allow people not to pay liability coverage as long as they can prove they have financial resources to pay the victim/s.
Meanwhile, liability insurance does not cover the injuries and damaged properties of the “at fault” driver.
No fault car insurance
This coverage will pay for the damaged properties and injuries of people involved in the car accident, regardless who is at fault.
Personal Injury Protection (PIP) is the basic “no fault” car insurance that covers hospital expenses, loss of wages, rehabilitation costs, and funeral expenses of car accident victims.
In California, PIP is optional for drivers, but in some states, it is mandatory that all drivers will have this coverage.
According to DMV, PIP covers policyholders and their family members even when the accident occurred in someone else’s car, all the passengers, and pedestrian with PIP policy (not available in some states).
Meanwhile, PIP does not cover motorbikes, farm and recreational vehicles, accident with the intention to cause injuries, and crime-related accidents.