Is Utah an At-Fault or a No-Fault State?

If you’ve been injured in an automobile accident, it’s important to know how state laws apply to your situation. Depending on where you live and the circumstances of your accident, statutes will have a huge impact on how much money your claim generates.

Utah operates as a "No-Fault" state. Regardless of who is responsible for a car accident, injured parties can claim up to $3,000 from their insurance carrier for medical expenses. This is commonly known as the "PIP Statute," an abbreviation for "Personal Injury Protection."

Overview of Utah's No-Fault Insurance System

Under this system, each driver's insurance company pays for their medical expenses and lost wages, regardless of who caused the accident. A no-fault system’s goal is to streamline the claims process and reduce the number of car accident lawsuits.

You may have noticed that in Utah, the no-fault system applies to injuries only. The state still requires drivers to carry liability insurance. This extra expense helps cover property damage and other expenses related to an accident.

Furthermore, fault still applies when a driver is grossly reckless or negligent. The law may place liability onto this driver as a punishment and deterrent for future reckless behavior.

Different Types of Insurance Coverage in Utah

  • Personal injury protection (PIP) is mandatory. It covers medical expenses, lost wages, and other related costs for you and any passengers in your vehicle.
  • Optional coverage includes property damage liability, collision coverage, and comprehensive coverage. These options can help protect your assets and provide added peace of mind.

Benefits of Having a No-Fault Policy in Utah

Having a no-fault policy in Utah can be helpful in several ways, such as:

  • This streamlined system can reduce stress and financial burden.
  • No-fault can lead to less expensive insurance premiums. Insurers do not have to bear the cost of investigating fault in every claim.
  • Insurance claims tend to be quicker. Because there is no need to prove fault, there is no need for lengthy investigations and disputes.
  • The system is more equitable, allowing everyone to care for themselves, and they don’t have to worry about paying someone else’s expenses.

The Drawbacks of a No-Fault Insurance System

The no-fault system should, theoretically, keep everyone protected. However, PIP plans come with maximum payouts. If you are seriously injured, you may be unable to fully recover your losses. As a result, you will be responsible for any medical costs your insurance doesn’t cover.

If you make an insurance claim, but you still have leftover costs, reach out to an attorney. They may be able to help you pursue a personal injury case to receive the repayment you need.

A no-fault system also offers no incentive for drivers to remain safe on the road. Unless they are grossly negligent, no one will hold them accountable for their actions. Informed drivers with bad intentions may act carelessly and recklessly, leading to more accidents and injuries over time.

The Benefits of At-Fault Car Insurance

  • If you are not responsible for an accident, your insurance rates will not be affected.
  • At-fault policies generally offer more coverage options than no-fault policies, allowing you to tailor your coverage to meet your needs.

The Drawbacks of At-Fault Car Insurance

  • At-fault insurance is generally more expensive, as it forces the insurance company to assume more risk.
  • If you are found at fault, your insurance rates can increase significantly, which can throw off your entire budget.
  • At-fault insurance does not always cover all damages, leaving you to pay out of pocket for any additional expenses.

What to Do After an Accident in a No-Fault State

  1. Make sure everyone involved is okay. Call emergency services if needed, then contact the police.
  2. Seek medical attention as soon as possible, even if you feel fine at the moment. It takes time for some injuries to start showing symptoms.
  3. Exchange information with the other driver, including their insurance information.
  4. Contact your own insurance company as soon as possible to begin the claims process. They will likely provide you with a list of approved repair shops and medical providers.
  5. Keep track of all expenses and communication with your insurance company.
  6. Contact an attorney. They may be able to help maximize your benefits, and they can take the matter to court when necessary.

If you’ve been hurt in a car accident, contact Nelson, Taylor & Associates, PLLC today. We are here to help. You can reach us online or by phone at (801) 901-7046.