Words used can be misleading at times. These rules serve totally different purposes and never meant to be used as a shield a responsible driver can hide behind. Everyone may settle own damages but there is still need to identify who caused the crash since it still matters.
First of all no-fault state auto insurance laws has nothing to do with assignment of liability for the incident and they don’t prevent determination of guilt. They just require the policyholders to settle small injury losses through own coverage rather than chasing after the third parties and opening up many small legal cases.
Vehicle insurance companies would still want to know if the accident was the fault of one of their policyholders or a third party because liability needs to be recorded accordingly. Once they establish that you were the culprit you will see considerable premium increase from next renewal and it can last several terms. You may not pay the injuries of third parties but you may still go down as the person who is liable for the crash.
Also, most no-fault states set a limit as to up to how much damage you should claim from own insurer. The victims are allowed to sue the responsible driver if the damages are higher than certain threshold or in special circumstances where a negligent behavior caused serious suffering. So, it is important that they find who is at fault in an accident of certain size for several reasons.
- Authorities would want to decide if there is a need for charging the driver with a traffic violation. And companies would want to decide if they would and could increase the premium. They can only do that if the incident goes on the record appropriately.
- They would need to do their jobs properly just in case this goes to court or some claims come back to the carrier.
Clearly, the driver who is responsible for the collision needs to be identified in any case. Otherwise, people cannot be punished for their reckless actions. In other words, they would be allowed to walk away with no consequences or little financial or legal punishment. This cannot be allowed, as it would lead to more losses or disrespect for the rules.
Modern automobile insurance pricing is based on penalizing risk taking and rewarding carefulness. This message must be clear with no ambiguity. And it is because most people know that they need to have clean history to be able to claim the highest discounts.