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No, California is not a no-fault state for auto insurance. California is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident. Additionally, unlike in no-fault states, drivers in California can file lawsuits to seek compensation for even basic medical expenses after an accident.
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In California, PIP is not required.
Key Things to Know About Insurance in California
- When an accident occurs, the insurance company for each driver who was involved will assign an adjuster to determine who was at at fault. To collect payment for their losses, victims must file a claim with the at-fault driver's insurance company.
- Depending on how long fault takes to be determined, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses, such as collision and comprehensive Their insurer can then recoup the cost from the at-fault driver's insurer if the policyholder is not determined to be at fault.
- California uses a pure comparative negligence system, meaning drivers can collect damages proportionate to their fault in causing the crash. For example, if they're 99% at fault, they can get 1% from the other driver.
- Being an "at-fault" / "tort" state helps keep California's insurance costs relatively low, compared to no-fault states.
- California requires all drivers to carry liability insurance, a type of insurance that pays for others' expenses after you cause an accident, such as damage to others' vehicles and their medical expenses.
In addition to California's minimum coverage requirements, you may want to purchase types of coverage that will pay for your own expenses after an accident. For example, collision and comprehensive insurance will cover damage to your vehicle, regardless of fault.
To learn more, check out WalletHub's guides to no-fault insurance and the cheapest car insurance in California.
This answer was first published on 06/19/23 and it was last updated on 02/28/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
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FAQs
The short answer is that California is one of 38 states that follow an at-fault policy. “At-fault” means the person responsible for the accident must pay for any damages they cause.
Is California a no-fault accident state? ›
No, California operates under a tort system rather than a no-fault system for auto insurance. In California, the at-fault driver in a car accident is responsible for covering the damages, including injuries and property damage, incurred by others involved in the accident.
Why are no-fault states bad? ›
What are the disadvantages of a no-fault state? Drivers in no-fault states are typically only allowed to file lawsuits if certain severe injury conditions are met. Bodily injury claims that fall below the state's tort liability threshold are covered by the injured party's PIP coverage instead.
What is the advantage of a no-fault system for states? ›
The advantage of a no-fault system for states is that it reduces lawsuits after car accidents, decreases legal expenses, and provides quicker access to medical coverage for individuals involved in accidents.
Does a no-fault accident go on your record in California? ›
In most cases, a car accident will appear on your driving record if it was reported to the police, regardless of being in a no-fault state. Accidents can stay on your record for three to 13 years, depending on the state and other factors.
Who determines fault in an auto accident California? ›
In a fault state like California, insurance companies play a significant role in determining fault and liability in car accidents. Insurance companies will investigate the accident and determine who was at fault for the accident, based on factors such as police reports, witness statements, and other evidence.
Why doesn t California have accident forgiveness? ›
Accident forgiveness is not available in California because a 1988 law, Proposition 103, made it illegal for insurers to charge “excessive rates.” This law indirectly bars insurers from offering accident forgiveness in California since drivers would be charged higher rates to offset the cost of forgiven accidents.
What are the advantages of no-fault? ›
No-fault divorce allows couples to obtain a divorce without the need to outline the bad behaviour of their spouse or prove fault. This can make the process of obtaining a divorce simpler and less contentious, as the parties do not have to engage in any legal battles to prove who is at fault.
How many states follow no-fault auto insurance in the USA? ›
There are 12 no-fault states in the U.S.: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Why you should never admit fault? ›
It Can Jeopardize Your Compensation Claim
However, admitting fault can complicate your claim. In some jurisdictions, admitting fault could entirely prevent you from receiving any compensation due to laws that limit recovery based on the degree of fault.
No Fault System Benefits
Lower insurance rates because expensive non-economic damage awards and legal fees required to defend liability claims are eliminated–legal fees currently account for 12% of premium costs. Reduction in the number of lawsuits.
Is Texas a no-fault state? ›
Texas is not a no-fault state.
Texas is one of 38 at-fault states, meaning that the party that is found to be at fault for the accident will be responsible for compensating the injured party for the amount he or she is responsible for.
Which states have no-fault in divorce? ›
Seventeen states in the US are considered “no-fault states” for divorce. These no-fault divorce states are Wisconsin, Oregon, Washington, Nevada, Nebraska, Montana, Missouri, Minnesota, Michigan, Kentucky, Kansas, Iowa, Indiana, Hawaii, Florida, Colorado, and California.
Do insurance rates go up after no-fault accident California? ›
But in California, there are laws against raising rates on drivers who were not “principally at fault.” So, as a California driver, so long as you are not at fault, your rates should not increase after an accident.
Who pays for a car accident if you don t have insurance in California? ›
If a driver does not have auto insurance coverage and causes an accident, they will be solely responsible for repaying the injured driver's damages.
Can I lose my house due to at fault car accident in California? ›
Losing your home in a car accident lawsuit may seem like an impossible nightmare, but it can happen. If you are sued for damages, and the court finds that you were at fault for the accident, you could be ordered to pay damages that exceed the value of your home.
How does car insurance work when you are not at fault in California? ›
Since California is not a no-fault state, injured victims must file car accident claims with the at-fault driver's insurance company. This means they must identify the driver who caused the accident and prove this driver's fault during the insurance process.
What is the liability for a car accident in California? ›
California operates under the permissive use law. California Vehicle Code section 17150 states, “Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner ...
Which states have no-fault insurance? ›
No-fault insurance states
In total, there are 12 no-fault states in the U.S. They are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. The minimum PIP insurance requirements for these states is as follows.
