No, California is not a no-fault state for auto insurance. California is one of the 38 states in the country where the person who causes a car accident has to pay for the damage and injuries.
How Car Insurance Works in California
When an accident occurs, the police determine who’s at fault. Then, to collect payment for their losses, victims must file a claim with the at-fault driver’s insurance company. Liability insurance is the type of insurance that pays victims’ claims, and all drivers in California are required to carry it.
Although you’re not required to carry any other kind of car insurance in California, you may want to protect yourself in case of an accident, too. For example, if you are at fault in a crash, your car can be covered by collision insurance. Medical payments coverage can pay your medical bills.
What No-Fault State Means for Car Insurance
In a no-fault state, each driver in an accident is responsible for covering their own losses through their insurance company. No one needs to prove who caused the accident to be covered. These states have different types of mandatory insurance, such as personal injury protection, which covers medical bills, costs related to medical care like transportation expenses, and lost wages.
Because of the required personal injury protection, or PIP, drivers in most no-fault states – like Florida, Michigan, New Jersey and New York – pay more for their insurance than California residents. Being a “fault” state helps keep California around the middle of the state rankings for insurance costs.
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