What is the difference between “no-fault” and “fault” liability in a car accident?
“No-fault” liability generally refers to auto insurance programs that allow insureds to recover financial losses from their own insurance company, regardless of who was at fault in an accident. “Fault,” the opposite of no-fault, refers to the traditional tort-based system which takes into account who was at fault for an accident, and to what degree, when determining what each person (and their insurance companies) will pay for damages. For medical expenses and wage loss benefits, insurance is “no-fault.” Each insured looks to his or her automobile policy for benefits, regardless as to the cause of the accident or whether the insured was personally responsible for his injuries. Pain, suffering, and other non-economic loss, benefits are “fault” based. The person who acted negligently and caused another’s injuries is responsible for compensating the injured for his or her damages. Pennsylvania has a confusing combination of both “no-fault” and “fault” statutes. Contact David J. Eckle, an
