When a car accident takes place, one of the first questions victims have is how they will pay for medical bills and vehicle repairs. The answer depends, at least in part, on the state’s insurance system. Some states use a no-fault insurance system, others follow an at-fault system, and a select few use a hybrid model that incorporates elements from each.
Missouri is an at-fault state, which means that the driver who causes the accident is financially responsible for the resulting damages. However, it’s important to understand how this differs from a no-fault system and what it means for your right to compensation.
Read on to learn more so that you can be fully informed prior to taking legal action.
What Is an At-Fault Insurance System?
In an at-fault insurance system like Missouri’s, the driver who causes an accident is legally responsible for the harm they cause. Their insurance company must pay for the victim’s damages, including medical expenses, lost wages, pain and suffering, property damage, and more.
Every Missouri driver must carry liability insurance that meets the state’s minimum coverage requirements:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage
If the at-fault driver’s insurance limits are not enough to cover the damages, the injured person can file a lawsuit directly against that driver for the remaining amount.
What Is a No-Fault Insurance System?
No-fault insurance laws are designed to simplify the claims process by having each driver turn to their own insurance company first, regardless of who was responsible for the crash.
Under a no-fault system, drivers typically carry Personal Injury Protection (PIP) coverage, which pays for medical expenses, lost wages, and similar costs up to the policy limit. Due to this structure, lawsuits are generally restricted unless the injuries meet specific thresholds, such as being deemed “serious” or exceeding a certain dollar amount.
No-fault states include Florida, New York, and Michigan. In those states, PIP claims are common, and victims can only sue another driver in limited situations.
Missouri’s Pure Comparative Fault Rule
Missouri follows a pure comparative fault law, which allows accident victims to recover damages even if they share some of the blame for the accident. However, their compensation is reduced by the percentage of fault attributed to them.
For example, if you are awarded $100,000 in damages but are found 10% responsible for the crash, your recovery will be reduced to $90,000.
This rule is one of the key differences between Missouri’s system and no-fault insurance laws. Under no-fault, fault percentages generally don’t affect your ability to recover medical costs from your insurer. However, in an at-fault state like Missouri, proving fault is central to every case.
What Are the Advantages and Disadvantages of Each System?
Each insurance model has pros and cons for accident victims.
Some of the pros and cons of at-fault systems (like Missouri) include:
- Pro: allowing victims to recover complete damages from the responsible party
- Pro: permitting lawsuits for both economic and non-economic damages
- Con: requiring proof of fault, which can delay payments if liability is disputed
Meanwhile, for no-fault systems, the pros and cons include:
- Pro: providing quicker access to medical coverage through your own insurer
- Pro: reducing minor claims from reaching court
- Con: limiting lawsuits unless injuries are serious
- Con: restricting recovery for pain and suffering in most cases
While no-fault insurance can speed up small claims, Missouri’s at-fault structure generally benefits those with serious injuries or significant financial losses by allowing broader recovery options.
What Damages Can Be Recovered in an At-Fault Claim?
Under Missouri law, accident victims can pursue compensation for both economic and non-economic damages.
Economic damages include losses, such as:
- Medical bills, both current and future
- Lost wages/diminished earning capacity
- Property damage
- Out-of-pocket expenses
Non-economic damages compensate you for:
- Pain and suffering
- Mental anguish
- Emotional distress
- Scarring and disfigurement
- Loss of enjoyment of life
In rare cases, victims may also be eligible for punitive damages if the at-fault driver’s conduct was particularly egregious.
Contact a St. Louis Car Accident Lawyer at Roach Law Car Accident Lawyers for a Free Consultation
If you were involved in a car accident in the State of Missouri, learning about the difference between at-fault and no-fault insurance systems is only an initial step in the process. An experienced St. Louis car accident lawyer can help you file a claim and recover full compensation from the liable party or parties.
Get started today by reaching out to Roach Law Car Accident Lawyers at (636) 519-0085 for a free initial consultation. Our lawyers work on a contingency fee basis, meaning we only receive attorney fees if we successfully secure compensation for you.