# Whata is a "no fault state" **URL:** \ **Category:** Factual Questions\ **Created:** [April 20, 2010, 2:43pm UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741 "2010-04-20T14:43:02Z")\ **Posts on this page:** 6\ **Page:** 2
**Author:** ![Peremensoe](https://avatars.discourse-cdn.com/v4/letter/p/ce7236/32.png) [@Peremensoe](https://boards.straightdope.com/u/Peremensoe)\ **Post date:** [April 23, 2010, 3:59am UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/21 "2010-04-23T03:59:32Z")
> [@suranyi](#): > > I think the idea is that even when faults can be assigned, it’s cheaper for everyone in the long run (e.g., within the legal system) if insurance companies just pay for the accidents that occur to their customers. So insurance premiums for everyone should be lower. It’s not going to be cheaper for you if someone else crashes into you, and then your two insurance companies raise both your rates! > [@suranyi](#): > > Of course the “no-fault” provision usually excludes things like clearly reckless conduct, as in your example. My point was that running down a pedestrian could happen under _precisely the same circumstances_ as crashing into another car. ---
**Author:** ![Mosier](https://avatars.discourse-cdn.com/v4/letter/m/7ea924/32.png) [@Mosier](https://boards.straightdope.com/u/Mosier)\ **Post date:** [April 23, 2010, 7:37am UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/22 "2010-04-23T07:37:46Z")
> [@acsenray](#): > > There are about a dozen states that have adopted “no-fault” laws for traffic accidents. They want to avoid the cost and hassle of insurance companies suing each other to determine which driver was at fault. Under the no-fault system, each person recovers medical treatment costs and lost wages from his or her own insurance company without having to prove that the other driver was at fault. > > However, if you want to recover for damage to your car, your insurance company still might have to sue if the other person doesn’t admit fault. It’s not really the same legal system though. Insurance companies very rarely “sue” each other, but use a third party arbitrator. Insurance arbitration is extremely efficient and avoids lawsuits altogether, and the decision rendered during arbitration is binding to all parties. ---
**Author:** ![Mosier](https://avatars.discourse-cdn.com/v4/letter/m/7ea924/32.png) [@Mosier](https://boards.straightdope.com/u/Mosier)\ **Post date:** [April 23, 2010, 7:40am UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/23 "2010-04-23T07:40:46Z")
> [@acsenray](#): > > Their lawyers talk to each other. If they can’t come to an agreement, they take it to court. Not exactly. See above. Insurance companies use arbitration almost exclusively to determine the degree of fault parties involved in auto accidents are assigned. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [April 23, 2010, 2:34pm UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/24 "2010-04-23T14:34:08Z")
> [@spark240](#): > > It’s not going to be cheaper for you if someone else crashes into you, and then your two insurance companies raise both your rates! No-fault is used for restitution. Fault is still assigned and evaluated by your insurance companies. Insurance companies in Michigan generally won’t raise your rates if you’re not at fault and not negligent, unless you have a history of infractions or a previous history of claims. I love my no-fault insurance, and the fact that I don’t have to worry about whether the other guy is insuring me. ---
**Author:** ![President\_Johnny\_Gentle](https://avatars.discourse-cdn.com/v4/letter/p/5f9b8f/32.png) [@President\_Johnny\_Gentle](https://boards.straightdope.com/u/President_Johnny_Gentle)\ **Post date:** [April 23, 2010, 2:59pm UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/25 "2010-04-23T14:59:30Z")
> [@Balthisar](#): > > No-fault is used for restitution. Fault is still assigned and evaluated by your insurance companies. Insurance companies in Michigan generally won’t raise your rates if you’re not at fault and not negligent, unless you have a history of infractions or a previous history of claims. I love my no-fault insurance, and the fact that I don’t have to worry about whether the other guy is insuring me. Exactly. I was actually a driver in three accidents within a single decade in which my car was totaled. Each accident took place in a no-fault state. My insurance didn’t go up at all, as my insurance company determined that I wasn’t at fault for any accident. In fact, in the midst of these, my insurance went down when I regained a safe driver discount that I had lost due to a ticket. ---
**Author:** ![NicePete](https://avatars.discourse-cdn.com/v4/letter/n/ee7513/32.png) [@NicePete](https://boards.straightdope.com/u/NicePete)\ **Post date:** [April 23, 2010, 5:26pm UTC](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741/26 "2010-04-23T17:26:26Z")
You can be “at fault” in an accident without having committed a violation of the law. [Previous page](https://boards.straightdope.com/t/whata-is-a-no-fault-state/536741.md?page=1)