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No-Fault vs. At Fault Insurance

Automobile insurance laws vary from state to state. Most states follow a fault-based or at-fault system for car accident claims, while a few states have no-fault laws that do not allow victims to sue other parties for damages except in very specific situations. Oregon is an at-fault state for automobile accident cases.

What Is the Difference Between No-Fault and At-Fault Insurance?

No-fault and at-fault insurance apply to car accident claims. However, the way the insurance coverage works is very different.

At-Fault Car Insurance

At-fault insurance is usually referred to as liability insurance, which is required for all Oregon drivers. Liability insurance does not cover your losses in a car accident. Instead, it compensates accident victims for damages if someone else caused the accident.

Before recovering compensation for economic and non-economic damages, an accident victim must prove the legal elements required to establish liability. Generally, negligence is the most common claim for car accidents. Four elements must be proven in a negligence claim:

• You owed them a legal duty of care.
• You breached the duty of care through your actions or failure to act.
• The breach of duty was the proximate and direct cause of the accident.
• The victim sustained injuries because of your breach of duty.

Liability insurance claims can take several months or over a year to settle, depending on the facts of the case and whether liability is disputed. If the victim has PIP insurance, it can help with costs while you wait to settle the at-fault claim.

No-Fault Car Insurance

No-fault insurance is often referred to as Personal Injury Protection (PIP) insurance. PIP covers medical expenses, loss of income, and other costs for you and your passengers if you are injured in a car accident.

You will have access to PIP benefits regardless of who caused the accident. For example, if you ran a red light and crashed into another car, you could still receive PIP benefits even though the crash was your fault.

Another difference between at-fault and no-fault insurance is that PIP does not compensate victims for pain and suffering damages like at-fault policies. However, a perk of having no-fault insurance is that you do not need to wait to settle a liability claim. One benefit of having no-fault insurance is that the benefits are paid quickly to help you cover medical bills and other expenses.

What Are the Car Insurance Requirements for Oregon Drivers?

Oregon requires drivers to have a minimum amount of liability insurance. The minimum coverage amounts are:

• Bodily Injury to Others – $25,000 per person and $50,000 per accident
• Property Damage – $20,000 per accident for damage to someone’s property
• Personal Injury Protection – $15,000 per person
• Uninsured Motorist Coverage – $25,000 per person and $50,000 per crash for bodily injury

You can purchase higher insurance coverage if desired, but you must have the minimum amounts. Even though Oregon is an at-fault state, drivers must have at least $15,000 in PIP insurance. Other at-fault states have similar requirements.

How Does Liability Insurance Coverage Work for a Portland Car Accident Claim?

As discussed above, you must prove the other driver caused the accident to recover damages. After a car crash, you can file a claim with the other driver’s insurance company. The insurance company will assign an adjuster to investigate the claim.

If the adjuster determines the insured caused the crash, they will evaluate your damages and make a settlement offer. However, the adjuster could deny the claim if they believe the insured did not cause the claim or have another valid legal reason for the denial.

Damages included in an at-fault car accident claim include economic and non-economic damages such as:

• Medical bills
• Pain and suffering
• Lost wages and earning capacity
• Disability and impairment
• Out-of-pocket expenses
• Disfigurement and scarring
• Emotional distress and mental anguish
• Loss of enjoyment of life and quality of life

The amount you receive depends on the facts of your case. Suppose the insurance company refuses to pay a fair amount for your car accident settlement or denies your claim. In that case, you would need to file a lawsuit against the at-fault driver to seek a judgment from the court.

How Does Personal Injury Protection Insurance Coverage Work for a Portland Car Accident Claim?

As discussed above, you do not have to prove fault for a PIP claim. Therefore, you can file a claim with your PIP provider immediately after a car crash. Costs covered by PIP include:

• Reasonable and necessary medical bills related to the car accident
• Lost wages (of up to 70%) if you are unable to work for 14 straight days after your accident or if you are on light duty and your employer cannot accommodate your restrictions
• Child care services, in some cases
• Up to $30 per day for essential services for cooking, yard work, and other household chores if your injuries prohibit you from performing these tasks

As with liability insurance policies, the company is only liable up to the policy limits. Furthermore, PIP claims are not automatic. Your insurance company could deny your claim or require an independent medical examination to confirm your injuries.

If you need help with your car insurance claim in Portland, OR, reach out to a personal injury attorney today.

Contact Our Personal Injury Attorneys in Portland at Tillmann Law Personal Injury Lawyers

If you were injured in an accident in Portland, OR, please contact our Portland personal injury lawyers at Tillmann Law Personal Injury Lawyers to schedule a free consultation today.

We proudly serve all throughout Multnomah County in Oregon. Visit our office at:

Tillmann Law Personal Injury Lawyers
101 SW Main St. #1905
Portland, OR, 97204
(503) 773-3333
Hours: Open 24/7