Comparative Negligence

AAA

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.

INVESTOPEDIA EXPLAINS '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. Unsatisfied Judgment Fund

    An amount of money set aside by certain states to cover uncompensated ...
  2. Social Host Liability

    A legal term and area of law that deals with the liability of ...
  3. Compensatory Damages

    Money awarded to a plaintiff to compensate for damages, injury, ...
  4. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Risk

    The chance that an investment's actual return will be different ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Taxes

    Deducting Disaster: Casualty And Theft Losses

    If you've been a victim, your losses may be deductible. Find out how.
  2. Home & Auto

    Insure Your Future With A Career As An Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  3. Insurance

    Is Insurance Underwriting Right For You?

    If you have excellent analytical skills and an eye for detail, this may be your calling.
  4. Insurance

    Do You Need Casualty Insurance?

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

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  6. Insurance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  7. Home & Auto

    Health Insurance: Paying For Pre-Existing Conditions

    If you bring a pre-existing condition to a new insurer, you may find yourself without coverage.
  8. Home & Auto

    Don't Be Misled By Investment Advertising

    Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading.
  9. Home & Auto

    A Look At Single-Premium Life Insurance

    Want to provide for your dependents and finance your own long-term care? Learn more here.
  10. Professionals

    5 Services To Usher In New Clients

    Discover ways in which advisors are increasingly choosing to promote their businesses.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center