Car accidents are covered under the collision coverage portion of a car insurance policy. How this coverage is applied after an accident varies depending on what state the accident takes place in, though. The vast majority of states can be categorized into no-fault and at-fault states. Here's how each type of state handles car insurance claims.

No-Fault States: Your Policy Pays Your Claim

Coverage application in a no-fault state is a fairly straightforward process. You simply file an insurance claim against your own insurer, and the other driver files a claim with their insurer. Each driver's claim is paid out by their respective insurer and according to their car insurance policy's collision coverage.

This is how collision claims are handled in no-fault states regardless of who's responsible for an accident, thus the term no-fault. 

If you're unsure whether your state is a no-fault or at-fault state, an insurance agent who's licensed in your state can tell you if this is how claims in your state are handled.

At-Fault States: The Responsible Driver's Policy Pays Your Claim

In at-fault states, the damage that vehicles sustain in an accident is ultimately addressed under the responsible driver's car insurance policy. Thus, you can expect your policy to pay for damage to both cars if you're responsible for an accident. If another driver is responsible, their insurer will ultimately pay for your car's damage.

While responsibility is sometimes clear-cut and easy to determine, other times it isn't so plain. When who's responsible for an accident is a murky determination, insurers may assign each driver a percentage of responsibility. In these situations, each driver's policy pays the percentage of the claim that they are responsible for.

For example, assume you're 30 percent responsible for an accident in which your car is damaged. In this example, your car insurance policy would ultimately pay for 30 percent of your car's repair costs and the other driver's policy would cover 70 percent of repair costs.

Moreover, these are how post-accident costs are ultimately handled. In the processing, however, insurers each initially pay their own policyholder.

If you're in an accident in an at-fault state and the accident is the fault of another driver, you still file a claim against your insurance policy. Your insurer will pay to repair your car so you don't have to wait to collect from the other driver's insurance company. After your insurer pays you, they'll seek compensation from the other driver's insurer to ultimately settle the claim.

To learn more, contact an auto insurance company.