The accident occurred in Nebraska. I am assuming that the party your sister hit is insured in Nebraska. Nebraska is NOT a 'no -fault' state. The no-fault system is intended to lower the cost of auto insurance by taking small claims out of the courts. Each insurance company compensates its own policyholders for the cost of minor injuries regardless of who was at fault in the accident. These 'first-party' benefits, which are a mandatory coverage, vary by state with no-fault systems. In states with the most comprehensive benefits, a policyholder receives compensation for medical fees, lost wages, funeral costs and other out-of-pocket expenses. Since Nebraska does not follow the 'no-fault' system, your parents may be liable for this person's injuries. Your parents should notify their insurance company of this loss. A licensed claims adjuster will be able to offer additional advice.

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