After a car accident, you’re most likely caught up in the aftermath of your injuries, police reports, and dealing with the insurance company. One question you may not think to ask is whether your state follows a no-fault or at-fault insurance system. The answer matters more than most people realize, and it can affect who pays for medical bills, how insurance claims are handled, and whether you can get a settlement beyond your insurance policy.
In this blog, we talk about the differences between no-fault and at-fault states and explain how South Carolina’s at-fault system works. We’ll also cover what injured drivers in Greenville should know about proving who is responsible, dealing with insurance companies, and understanding their options for getting compensated after a crash.
What is a No-Fault State?
In a no-fault state, drivers count on their Personal Injury Protection (PIP) insurance to cover medical costs after a car accident, no matter who was at fault. This system is designed to cut down on lawsuits for minor injuries.
How a No-Fault System Works:
- Your Insurer Pays First: After a crash, you file a claim with your own insurance company for medical bills and lost wages.
- PIP Coverage: This coverage, sometimes called “no-fault insurance,” is required and pays for your medical costs and lost wages.
- Property Damage is At-Fault: Fault matters for vehicle repairs. The at-fault driver’s property damage liability insurance covers the cost of repairs.
- Limited Right to Sue: Typically, you cannot sue the negligent driver for non-economic damages (like pain and suffering) unless your injuries are serious enough to meet a specific limit set by the state (either a monetary value or a verbal description of the injury).
What is an At-Fault State?
In an at-fault state, the driver who causes a car accident is legally required to cover the damages of the other parties involved, including vehicle repair and medical costs. Typically, this is handled through the at-fault driver’s liability insurance policy.
To get back the costs you spent in these states, you have the option to file a claim against the careless driver’s insurance or even file a lawsuit. However, receiving compensation depends on you or your attorney proving the other driver’s negligence, which can be complicated.
For example, North Carolina, an at-fault state, follows a “strict contributory negligence rule,” which is a strict rule that blocks you from recovering any damages if you are even slightly at fault for the accident.
How an At-Fault State Words:
- Liability: The driver who was found to be at fault is responsible for all losses caused by the accident.
- Claims: Injured parties file a claim with the at-fault driver’s insurance company.
- Lawsuits: A victim can sue the at-fault driver to be fully compensated for their losses.
- Proving Fault: The injured party must be able to prove that the other driver’s negligence directly caused the crash and the damages that resulted from the crash.
- Your Costs: While your own insurance (such as PIP or Medical Payments coverage) might cover some of your injuries, you are responsible for any costs that go over the at-fault party’s policy limits.
Is South Carolina a No-Fault or At-Fault State?
South Carolina is an at-fault state, meaning the driver who caused the accident is financially responsible for resulting damages, such as injuries and property loss.
However, South Carolina also employs a modified comparative negligence rule (often called the 50% Bar Rule). This rule is crucial because it allows an injured party to recover damages only if they are found to be less than 50% at fault for the accident.
How Insurance Claims Work in At-Fault States Like South Carolina
Yes, South Carolina is an at-fault state, but because it uses a “modified comparative negligence rule,” the amount an injured party can recover after an accident is affected. Here’s how it works:
- You Can Recover: If you are found less than 50% at fault for the accident, you can still recover damages. Your percentage of blame will lower your total compensation.
- Example: If you are 20% at fault for $10,000 in damages, you would receive $8,000.
- You Cannot Recover: If you are found to be 50% or more at fault, you legally cannot recover any damages from the other driver.
How At-Fault Claims Work
- Identify the Negligent Driver: The driver whose carelessness (speeding, distracted driving, traffic law violations, etc.) caused the accident is held responsible for the damages.
- File an Insurance Claim: The injured party files a claim against the at-fault driver’s insurance.
- Determine Fault: Insurance companies and police investigate using evidence, such as police reports, to determine fault and assign a percentage of blame to each party.
Types of Damages and Insurance Options
Compensation typically covers:
- Medical expenses
- Lost wages
- Pain and suffering
- Property damage (repairs)
In addition to filing against the at-fault driver’s policy, you may use your own insurance policies:
- Uninsured/Underinsured Motorist (UIM/UM) Coverage: This applies if the at-fault driver doesn’t have the needed insurance to cover your full costs.
- Medical Payments (MedPay) or PIP: These policies can be used to cover immediate medical costs, no matter who was at fault.
How Fault is Determined After a Car Accident in South Carolina
In South Carolina, determining fault is key to the outcome of an auto accident insurance claim or lawsuit. Fault is found using these four categories:
- Duty: The driver is expected to operate their vehicle responsibly.
- Breach: The driver failed to meet this expectation.
- Damages: The driver’s failure directly led to injuries or losses.
- Causation: The damages were a direct result of the driver’s careless actions.
Although police document the scene and prepare an accident report, that report does not officially determine fault.
When an insurance claim is filed, claims adjusters review the police report, driver interviews, medical records, and other evidence to assign fault. If the involved parties cannot agree, the case may proceed to court, where a jury will determine fault.
It’s important to know that fault is often shared. Both drivers may be assigned a percentage of fault, which directly impacts the amount each can receive. For instance, if the other driver is found to be 80% at fault, you would be eligible to recover 80% of your total damages.
Understanding South Carolina’s At-Fault System and Why It Matters
South Carolina follows an at-fault system, meaning the driver responsible for causing a car accident is also responsible for the damages that result from the crash. Understanding how this system works can make a meaningful difference in how you handle insurance claims, medical bills, and potential legal action after a crash. Knowing your rights and your responsibilities helps you make informed decisions during an already stressful time.
If you’ve been injured in a car accident, navigating South Carolina’s at-fault laws can quickly become overwhelming. Insurance companies may try to reduce payouts, and determining fault isn’t always easy.
Armada Law in Greenville, SC, is here to help you understand your options, protect your rights, and get the money you deserve. Reach out to an experienced car accident attorney today to bring clarity and peace of mind as you move forward.
