Automobile Accident Compensation

Volume III: Payments From All Sources

by Robert L. Houchens

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This report compares outcomes of compensation systems for victims of automobile accidents from three groups of states: (1) no-fault states, with no-fault legislation that restricts tort liability; (2) add-on states, in which no-fault legislation does not restrict tort liability; and (3) tort states, without no-fault legislation. Among the study's conclusions were the following: (1) the probability of an auto accident victim's receiving any payment for his losses is higher in add-on and no-fault states than in tort states; (2) the average payment to the victim is usually nearer his economic loss in no-fault states than it is in tort states and add-on states for small losses; (3) the employer is the single most frequent source for payment of wage loss, and pays exactly the amount of wage loss about eighty percent of the time; and (4) victims in no-fault states appear to have a better chance of getting some compensation for wage loss than do victims in tort states.

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