How is the decision, ‘who is at fault?’ decided by the insurance company?


The issue of ‘who is at fault?’ is partially determined by the laws of the state in which the accident occurred. The states follow one of the two systems, the comparative negligence and the contributory negligence. In the first system, a percentage of the blame is assigned to both the parties involved in the accident. Each one would pay the percentage of the other person’s damage. In the second system, the person who is considered to have more than 50% at fault would be required to pay the entire damages. In general, a person entering the roadway should yield to the ongoing vehicle traffic. If this is violated, then that person would be at fault. In a few states, a no-fault system is followed. Under this system, the insurance company of the person involved in the accident should pay the damages, irrespective of who is at fault.