Expert: Anne - 1/14/2009

Question
Hello, I'm wondering, in auto insurance claims, what does a percentage liability mean exactly. For example if I am told that I am 25% liable, and the other party is 75% liable. Does this percentage affect how much my premium will do up, how much I pay out of pocket, and/or whether I get points on my license? Thank you for your time.

Answer
Hello Mary,

The answer depends on who your insurance company is and what state you live in.

States usually follow 3 rules. The pure comparative fault, the more than fault, and the same as rule.

The pure comparative means that the 25% liable party must pay the 25% of the damages of the other party. The other party must pay 75% of the first party.

In a more than fault state, the party that is 51% or more at fault must pay their percentage of liability but will not get paid for what the damages they did not cause. In this case, the 75% will have to pay for 75% of the damages of the other party. They will not get compensated for the 25%  that they did not cause.

The same as fault, would apply if both parties are 50% at fault, which is not the case here.


Please note that there are different variations of these rules.

Please visit:

http://www.auto-insurance-claim-advice.com/ for more information.

Please also contact an attorney before making any decisions regarding your claim.

Good Luck
Anne