Hawaii’s status as a no-fault state carries significant implications for individuals involved in auto accidents. It can impact the ability to take someone to court for payment for damages that came from the crash.
Understanding what this designation means is essential for both drivers and passengers navigating the aftermath of a collision.
No-fault explained
In a no-fault system, the focus shifts from assigning blame to ensuring that all parties receive compensation for their injuries. Who caused the accident is not an important factor because each party’s insurance pays for their damages.
Personal injury protection
All drivers must carry Personal Injury Protection insurance. This is an important component of the no-fault system. PIP insurance provides coverage for medical expenses, rehabilitation costs and sometimes lost wages for the policyholder, passengers and pedestrians who suffer injuries in an auto accident. This coverage is applicable regardless of who is at fault for the collision.
Limitations
Hawaii’s no-fault system comes with a threshold that allows injured parties to step outside the no-fault framework and pursue a bodily injury claim. This can occur when the injuries in the accident meet certain criteria, such as the payment of $5,000 in PIP medical benefits, permanent disfigurement or other significant impairments. In such cases, the injured party can file a claim against the at-fault driver to seek compensation beyond the confines of PIP coverage.
Navigating the no-fault system in Hawaii requires a comprehensive understanding of insurance coverage and the thresholds for pursuing bodily injury claims. While the no-fault framework aims to simplify and expedite the claims process, it is essential for individuals to be aware of their rights and options.