Insurance Curator A practical, state-by-state playbook for how laws and minimums alter the cost, timing and settlement choices after a car crash. This guide explains the legal regimes (no‑fault vs. tort), PIP/UM/UIM requirements, minimum liability limits, comparative‑fault rules, statute‑of‑limitations deadlines, and total‑loss formulas — plus negotiation and documentation tactics that work in each environment.
Quick navigation
- Why state law matters to your claim cost and settlement options
- No‑fault vs. at‑fault (tort): what changes for medical bills and lawsuits
- State minimum liability: how low limits create shortfalls (table + examples)
- Comparative, modified and contributory fault: who pays and how much
- Filing timelines & statute of limitations: deadlines that can kill a case
- Total‑loss thresholds & ACV disputes: when insurers declare a total loss
- Practical, state‑adapted strategies for faster, fairer settlements
- Checklist, negotiation scripts and FAQs
Author note: compiled by a senior insurance content specialist using state insurance sources, legal summaries, and industry reference guides to give a practical — not legal — deep dive. For legal advice about your specific claim, consult an attorney licensed in your state.
Why state law changes what you get and what you pay
Your claim outcome depends less on the insurer and more on the state law that governs:
- Who pays first (your insurer via PIP vs. the at‑fault driver’s liability carrier). (iii.org)
- How high the legal minimums are (BI/PD minimums and whether UM/UIM is mandatory). (nerdwallet.com)
- Whether you can sue and for which damages (monetary or verbal thresholds in some no‑fault states). (iii.org)
- How fault is allocated (pure comparative, modified comparative or contributory negligence) — which directly reduces or eliminates recoverable damages. (alllaw.com)
- How long you have to file (statute of limitations varies widely). (forbes.com)
- Total‑loss rules — some states use a percentage threshold while others use a formula (Repair Cost + Salvage ≥ ACV). That determines whether you get a payout based on Actual Cash Value (ACV). (moneygeek.com)
Each of these items affects both out‑of‑pocket exposure and the insurer’s settlement calculus. Read on for the state‑group breakdowns and concrete negotiation tactics.
No‑fault vs. fault (tort) regimes — what drivers must know
What “no‑fault” means in practice
- In a no‑fault/PIP state, each driver’s own policy pays first for medical bills and related economic losses up to PIP limits — regardless of who caused the crash. Laws often limit the right to sue for pain and suffering unless a statutory threshold (monetary or verbal) is met. (iii.org)
Which states have mandatory no‑fault/PIP?
Twelve states (and Puerto Rico) have some form of mandatory no‑fault: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah. The details and whether the threshold is monetary or verbal differ by state. (iii.org)
Key practical effects
- PIP reduces early litigation and speeds medical payments — good for immediate cash flow but often lowers long‑term non‑economic recovery unless injuries meet thresholds. (reviews.com)
- In choice no‑fault states (e.g., New Jersey, Pennsylvania, Kentucky), you may elect a tort policy instead — that choice affects your ability to sue later. (iii.org)
- PIP limits vary (e.g., Florida historically required $10,000 PIP; Michigan’s PIP rules changed after 2019 reforms to allow choices and limits under certain situations). Always verify your state’s current PIP minimum. (autoinsurance.org)
Internal reading: detailed PIP comparisons and state-specific practical tips:
State minimum liability requirements — why “minimum” often isn’t enough
Most states require liability insurance (BI/PD) but minimums differ and are frequently inadequate to cover serious injuries or multiple‑victim crashes.
Sample minimums (representative selection)
| State | Common minimum BI/PD (per person / per accident / PD) |
|---|---|
| California | 15/30/5 (changed to 30/60/15 in 2025 — check your state update). (insurify.com) |
| Texas | 30/60/25. (carinsurance.com) |
| Florida | $10k PIP required; liability minima historically low for PD; many drivers underinsured. (autoinsurance.org) |
| New York | 25/50/10 (with mandatory UM/PD offer rules). (insurance.com) |
| Michigan | 50/100/10 plus PIP choice options after reform. (nerdwallet.com) |
(Full 50‑state minimum tables are available from consumer sites and insurers — review your state’s department of insurance page or [NerdWallet’s state table].) (nerdwallet.com)
Why minimums create uncovered gaps
- Medical costs escalate quickly. A coma, spinal injury or multiple fractures can easily exceed minimum BI limits. If the at‑fault driver carries only the legal minimum, the injured party may face uncompensated losses. (nerdwallet.com)
- Uninsured/underinsured motorist (UM/UIM) coverage becomes crucial where minimum BI is low or uninsured driving rates are high. Some states mandate UM; others only require insurers to offer it. (reviews.com)
Example calculation (illustrative)
- Crash medicals: $75,000. At‑fault driver BI limit: 25/50/25. Your recovery from the at‑fault BI carrier maxes at $50,000 (split among victims). You may need to use your own UM/UIM or Medicare/health insurance to bridge the gap — or sue for excess if collectible assets exist.
Internal reading on related topics:
Fault allocation: pure comparative, modified comparative and contributory negligence
Which rule your state uses determines how fault percentages reduce recoverable damages.
- Pure comparative negligence: plaintiff can recover even if 99% at fault; recovery reduced by plaintiff’s fault percentage. (e.g., California). (alllaw.com)
- Modified comparative negligence: plaintiff may recover only if plaintiff’s fault is below a threshold (often 50% or 51%). Many states use a 50% or 51% bar. (usclaims.com)
- Contributory negligence (harsh): if plaintiff is even 1% at fault, recovery is barred — rare but still in a few states. The principal contributory states are Alabama, Maryland, North Carolina, Virginia — plus the District of Columbia with limited exceptions. (en.wikipedia.org)
Why this matters (short example)
- You suffer $100,000 in damages. In a pure comparative state, if you are found 30% at fault, you still recover $70,000. In a contributory negligence state, a 1% assignment to you results in zero recovery from the other driver — leaving only PIP/health/ERISA solutions. (alllaw.com)
Internal reading:
- Comparative negligence and claims: how fault allocation changes payouts and premium impacts by state
Filing timelines: statute of limitations and other critical deadlines
Missing a filing deadline can extinguish a valid claim. Statutes vary — commonly 2–3 years for injury claims, with some states shorter or longer.
Representative timeline highlights
- Many states: 2 years for personal injury (several variations exist). (forbes.com)
- Some states: 3 years (e.g., New York – 3 years for personal injury; note property-related deadlines may differ). (forbes.com)
- Few states extend to 5–6 years for certain claims (e.g., Missouri 5 years; Maine and North Dakota up to 6 years for some causes). (torhoermanlaw.com)
- Special short rules: Tennessee and Louisiana have one‑year windows for certain types of claims. Always check your state. (torhoermanlaw.com)
Tip: statute of limitations often differs for (a) personal injury; (b) property‑damage; and (c) wrongful death. A wrongful death claim may have a distinct deadline or tolling rules. (forbes.com)
Action steps to avoid missed deadlines
- Immediately preserve evidence (photos, medical records, police reports).
- Notify your insurer and the at‑fault insurer in writing; get claim numbers and adjuster names.
- Consult counsel before the limitations window nears if you expect a serious case.
Internal reading:
Total‑loss rules & ACV: percentage thresholds vs. the Total Loss Formula
Two common state approaches:
- Total Loss Threshold (TLT): a fixed percentage of ACV (e.g., 70% or 75%) — if repair cost ≥ threshold × ACV, vehicle is totaled.
- Total Loss Formula (TLF): Repair Cost + Estimated Salvage Value ≥ ACV → total loss. (moneygeek.com)
Examples of how state rules change settlement outcomes
- Same car, ACV = $10,000. Repair estimate = $7,500. Salvage value = $500.
- In a 75% TLT state, $7,500 is exactly 75% of ACV → car may be totaled. (carinsurance.com)
- In a TLF state, repair + salvage = $8,000 which is < $10,000 → not totaled (insurer may repair). (moneygeek.com)
State examples and variation
- Some states (e.g., Colorado, Texas) have very high TLTs (up to 100% or special rules), while others use a TLF. Many states also add late‑model exceptions or flood/salvage specifics. Always verify the precise statutory or regulatory rule in your state. (totallossnw.com)
Internal reading:
How these rules change your claim cost and settlement options — practical scenarios
Scenario A — Minor injury, no‑fault state (PIP)
- You and another driver collide; you each file PIP with your insurer. Your medical bills are paid by your PIP up to the policy/state minimum. Suing the other driver for pain and suffering is limited unless thresholds are met. Result: quick medical payments, limited litigation leverage. (reviews.com)
Scenario B — Severe injury, at‑fault (tort) state with low minimums
- Medicals = $200k, at‑fault BI = 25/50/25. You exhaust the at‑fault policy’s $50k and must either:
- Use your UM/UIM if you have it (best outcome); or
- Pursue the at‑fault driver personally (rarely collectible), or
- Seek settlement from your insurer if you have MedPay/health benefits. Result: large gap, higher out‑of‑pocket risk. (nerdwallet.com)
Scenario C — Comparative fault reduces recovery
- You’re 40% at fault in a pure comparative state and sustain $150k damage. Recoverable amount = $90k (60% of $150k). In a contributory state, a similar 1% fault allocation could bar recovery entirely. (alllaw.com)
Scenario D — Total loss treated differently
- Your 3‑year-old car ACV $12k, repair estimate $9,600 (80%). In a state with an 80% TLT you may get total loss payout; elsewhere using TLF with salvage > $500 might not be totaled. This affects whether you get an ACV check or vehicle repairs — and whether you can negotiate additional offset items (sales tax, registration, diminished value). (moneygeek.com)
State‑adapted negotiation and documentation strategies (step‑by‑step)
- Know your state’s regime — fault system, PIP, TLT vs. TLF and statute of limitations. Use the state DOI and III/Forbes/NerdWallet primers as baseline checks. (iii.org)
- Preserve: photos, multiple repair estimates, receipts, medical records, employment proof of lost wages, police report. Strong documentation shifts adjuster calculus.
- For PIP claims: submit medical provider invoices, itemized bills and proof of services promptly to avoid denials. Ask your adjuster for a written explanation if PIP is partially denied. (reviews.com)
- For BI claims where the at‑fault policy is low: confirm whether you have UM/UIM and whether a stackable or higher limit exists; file a UM claim early (often capped by a time limit). (reviews.com)
- If ACV is paid after a total loss, demand the appraisal backup: comparable local listings, private sale receipts and KBB/CARFAX comps. Use state‑specific rules on TLT/TLF to argue for repair vs. total or to push ACV upward. (moneygeek.com)
- If comparative fault is an issue, assemble objective evidence (video, independent witness statements, scene diagrams) to decrease your percent fault. Remember: small percentage shifts can make large dollar differences. (alllaw.com)
- When deadlines approach, file suit (or a tolling agreement) to preserve rights; many attorneys will file a complaint to stop the statute of limitations while you negotiate. (forbes.com)
Scripts and templates
- Short demand header: “Re: Claim # — [date] — demand for payment — facts & damages.” Attach bills and a table of damages. Use firm but factual tone, cite relevant state PIP/UM codes only if you’ve confirmed them.
- Counteroffer script after low ACV: “I disagree with your ACV of $X. Attached are five comparable local listings and receipts for recent maintenance. Per [state rule if applicable], I request a revised ACV of $Y.” (Attach evidence; ask for appraisal if available under policy.)
Internal reading:
Practical checklists: what to do in the first 30 / 90 / 365 days
First 24–72 hours
- Seek medical care and get copies of records.
- Photograph the scene & vehicles.
- File the police report and obtain the report number.
- Notify your insurer and the other party’s insurer; get claim numbers and adjuster names.
- Preserve witness contact details and any camera footage.
First 30 days
- Submit PIP/MedPay claims rapidly if in a no‑fault state. Track denials in writing. (reviews.com)
- Obtain repair estimates and contact salvage/title info for potential total‑loss scenarios. (moneygeek.com)
First 90 days
- If disputes appear, consider sending a demand package (documents + a concise damages summary).
- If fault percentages are in dispute, test your evidence (dashcam, phone records, intersection signals). (alllaw.com)
Up to statute of limitations
- Decide whether to negotiate or file suit. If the insurer stalls and the deadline nears, consider filing to preserve your cause of action. (forbes.com)
Internal reading:
State examples & tactical notes (high‑impact states)
Florida (No‑fault heavy PIP environment)
- PIP is mandatory and historically low ($10,000 basic), which speeds small bills but often leaves larger claims undercompensated unless you sue under limited exceptions or have UM/UIM. Florida also has high uninsured motorist rates — UM is critical. (autoinsurance.org)
Michigan (Complex PIP reform)
- Michigan historically had one of the most generous (and expensive) PIP schemes (unlimited medical), but recent reforms let drivers choose levels for PIP and created new UM/UIM dynamics — making policy selection and timing crucial when claims arise. Review your policy’s PIP selection carefully. (reviews.com)
New York (No‑fault with monetary limits and strong UM rules)
- NY requires PIP and has structured limits for basic economic loss; UM/UIM disclosure and offers are common. For serious injuries, a suit may be available if thresholds are met. (reviews.com)
California (tort/pure comparative state + evolving minimums)
- CA uses pure comparative negligence (recover even if mostly at fault) and has updated minimums in recent years — check current minimums if you live in or are injured in CA. (alllaw.com)
Internal reading:
Advanced negotiation tips (for adjuster meetings and demand letters)
- Use 3–5 recent local comparables for ACV disputes (same trim, mileage, zip code). Insurers often rely on national comps; local retail comps can push ACV up. (moneygeek.com)
- For total‑loss states using TLF, insist the insurer provide the salvage estimate and repair breakdown. If salvage is understated, your vehicle might have been improperly repaired vs. totaled. (carinsurance.com)
- For PIP denials, probe policy exclusions (pre‑existing conditions, unrelated treatment) and demand peer review or independent medical examination (IME) only when necessary — IMEs can be used strategically by insurers. (reviews.com)
- If comparative fault is negotiated, seek to minimize percentage through factual evidence: precise measurements, calibrated speed data, or third‑party reconstructions. Small percentage reductions create significant dollars. (alllaw.com)
Internal reading:
When to hire an attorney (state‑specific signals)
Consider counsel if any of the following apply:
- Medical bills exceed policy limits or your own UM/UIM is needed. (nerdwallet.com)
- The insurer denies coverage or offers an ACV that appears unreasonably low for comparable vehicles. (moneygeek.com)
- Fault is disputed and your state’s rule (e.g., contributory jurisdiction) threatens to bar recovery. (en.wikipedia.org)
- Complex permanent injuries, wrongful death, or multi‑party liability.
Most personal injury attorneys work on contingency — they advance costs and collect a fee only if you recover — and will often perform an early case evaluation to determine state‑specific viability.
FAQ — quick answers
Q: If I live in a no‑fault state but crash in a tort state, which law applies?
A: Generally, the law where the accident occurred controls coverage treatment and tort remedies. Check both your policy language and the accident state’s law immediately. (Ask counsel if cross‑jurisdiction issues arise.) (iii.org)
Q: Will my insurer pay for a rental car if my vehicle is totaled?
A: Rental reimbursement depends on your policy or the at‑fault insurer’s willingness to cover it. Some states regulate rental rules after total loss; others do not. Document damages and demand rental coverage in writing with line‑item justification. (moneygeek.com)
Q: My PIP was denied — what next?
A: Ask for a written denial reason, provide missing documentation, request internal review and consider an attorney if the denial is for a substantial portion of medical claims. (reviews.com)
Q: How do I know whether my state uses TLT or TLF?
A: Consult your state DOI or one of the up‑to‑date aggregator tables (MoneyGeek, CarInsurance.com or WalletHub) and confirm via state code. Examples and tables are summarized above. (moneygeek.com)
Internal reading:
Quick reference resources (authoritative starting points)
- Insurance Information Institute — background on no‑fault systems and state lists. (iii.org)
- State Departments of Insurance — for definitive, current minimums and regulatory guidance. (Search “[Your State] Department of Insurance” for policy bulletins and claim guides.)
- Forbes Advisor / Nolo / FindLaw — statutory deadlines and tort rules across states. (forbes.com)
- MoneyGeek / CarInsurance.com / WalletHub — consolidated tables for TLT vs. TLF and minimum limits (great for quick comparisons). (moneygeek.com)
Bottom line — a practical roadmap to protect your recovery
- First, identify your state’s regime (no‑fault vs tort), your policy’s PIP/UM/UIM choices and the applicable statute of limitations. Confirm the state’s total‑loss rule if the vehicle is damaged. (iii.org)
- Document aggressively, file claims and demand payments in writing, and use local comparables to dispute ACV or TLT decisions. (moneygeek.com)
- If minimum liability looks insufficient, prioritize UM/UIM claims and consult counsel before the limitations window closes. (reviews.com)
Further reading from this cluster (practical, state‑focused guides)
- How state law affects your car insurance claim: no-fault vs fault regimes and the cost implications in every US state
- PIP and no-fault claims explained: what Florida, Michigan and New York drivers must know about coverage and costs
- Comparative negligence and claims: how fault allocation changes payouts and premium impacts by state
- How your state’s total-loss rules alter ACV calculations and negotiating strategies for fairer payouts
- Insurance claim statute of limitations by state: avoid missed deadlines that could cost you thousands
- When to file under PIP vs liability in no-fault states: cost, coverage and medical expense comparisons
- State regulatory tips: how to use local consumer protection rules to contest a low car insurance payout
- How state-specific fault rules impact rental reimbursement and out-of-pocket repair costs after an accident
- Local claim strategies: adapting your dispute, document and negotiation approach to your state’s laws
If you want, I can:
- Produce a printable one‑page “claim timeline & checklist” specific to your state.
- Pull the exact BI/PD minimums, PIP requirements, statute of limitations and TLT/TLF method for the single state you specify (I’ll fetch the latest official DOI citations).