What Is Comparative Fault and How Does It Affect Your Settlement?

Comparative fault, also called comparative negligence, is a legal doctrine that reduces your settlement based on your percentage of responsibility for the accident. If you share some blame for the accident, your compensation will be reduced accordingly. Understanding how comparative fault works in your state is essential to evaluating your claim.

Types of Comparative Fault Systems

Pure comparative negligence allows you to recover damages even if you are 99 percent at fault, though your recovery is reduced by your percentage of fault. States using this system include California, New York, Florida, and several others.

Modified comparative negligence allows you to recover damages only if your fault is below a certain threshold. In 50 percent bar states, you cannot recover if you are 50 percent or more at fault. In 51 percent bar states, you cannot recover if you are 51 percent or more at fault. Most states use a modified system.

Contributory negligence is the strictest system, barring recovery entirely if you are even 1 percent at fault. Only Alabama, Maryland, North Carolina, Virginia, and the District of Columbia use this system.

How Comparative Fault Reduces Your Settlement

If your total damages are $100,000 and you are found to be 20 percent at fault, your settlement is reduced by 20 percent to $80,000. If you are 50 percent at fault in a 50 percent bar state, you receive nothing. In a pure comparative negligence state, you would receive $50,000.

Common Scenarios Involving Shared Fault

Speeding at the time of the accident even though the other driver ran a red light. Not wearing a seatbelt, which may have worsened your injuries. Failing to signal before changing lanes. Jaywalking when hit by a car. Texting while walking and falling on a hazardous surface.

How Insurance Companies Use Comparative Fault

Insurance companies aggressively look for evidence that you share fault for the accident. They may review your driving record, analyze the accident scene, check for seatbelt use, and monitor your social media for evidence of risky behavior. Even a small percentage of shared fault can significantly reduce your settlement.

Conclusion

Comparative fault can significantly reduce your settlement, so understanding your state's rules and minimizing your share of blame is essential.

Use our free settlement calculator to estimate what your case might be worth.