DEFINITION of 'Comparative Negligence'

A principle of tort law that applies to casualty insurance in certain states. Comparative negligence states that when an accident occurs, the fault/negligence of each party involved is based upon their respective contributions to the accident. This allows insurers to assign blame and pay claims accordingly.

BREAKING DOWN 'Comparative Negligence'

Comparative negligence is most commonly used to assign blame in auto accidents. If two drivers both break the same traffic laws in an accident, then both may be denied their claims. Many carriers assign blame between drivers on a percentage basis, such as 70/30.

RELATED TERMS
  1. Unintentional Tort

    A type of unintended accident that leads to injury, property ...
  2. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  3. Tort Law

    The area of law that covers the majority of all civil lawsuits. ...
  4. Insurance Coverage

    The amount of risk or liability covered for an individual or ...
  5. Ambulance Chaser

    In insurance, a derogatory term for lawyers and other service ...
  6. Nonstandard Auto Insurance

    Auto insurance offered to drivers considered to carry the most ...
Related Articles
  1. Tech

    How Smart Technology Is Impacting Insurers

    Smart technology promises to bring major change to the way that insurers monitor and protect their customers.
  2. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  3. Insights

    Tesla's Autopilot Results in Death of Driver (TSLA)

    A 2015 Tesla (TSLA) Model S was involved in an accident caused by its autopilot self-driving feature.
  4. Insurance

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  5. Insurance

    Will Filing An Insurance Claim Raise Your Rates?

    An accident can mean higher insurance costs - even if it wasn't your fault.
  6. Insurance

    What To Do When Your Insurance Company Won't Pay

    Struggling to get a claim honoured? Find out what you can do.
  7. Insurance

    Understanding Your Third-Party Insurance Policy

    Third-party insurance protects a party from the claims of another.
  8. Investing

    Railroad Safety Concerns Becoming Common Headline (UNP)

    The rails continue to disappoint on safety measures as a pedestrian is struck on a Union Pacific-operated line.
  9. Insurance

    12 Car Insurance Cost-Cutters

    If car costs are dragging you down, find out how to free yourself from some of the extra weight.
  10. Insights

    Why Americans Think Bush Is To Blame For The Economy

    The perception of who is to blame for the economy played a major role in Obama's reelection.
RELATED FAQS
  1. Can your insurance company drop you after an accident?

    Learn how auto accidents can lead to insurance premium increases or policy cancellations, and why high-risk drivers are more ... Read Answer >>
  2. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  3. Does your car insurance company report accidents to the DMV?

    Find out when and how auto accidents get reported to the Department of Motor Vehicles, including how your state of residence ... Read Answer >>
  4. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center