At-Fault Accident Defined (2024)

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What is an at-fault accident? An at-fault accident is when a driver causes a collision by negligence or carelessness. The at-fault driver is responsible for paying off damages to other vehicles or injuries, which their auto insurance policy can cover. 

More than one driver can be at-fault in an accident. In this case, both drivers will be responsible for accident costs. 

An at-fault car accident can raise rates by almost 50% at even the best auto insurance companies. Keep reading to learn what coverages you’ll need and how much at-fault accident car insurance goes up. This guide covers everything you need to know about what an at-fault accident is and how laws vary in tort and no-fault states.

What is an at-fault accident?

In an at-fault accident, it is clear that a driver’s negligence caused the collision. Some examples of careless driving that could result in at-fault accidents include: 

• Running a red light
• Not stopping at a stop sign
• Not yielding at a yield sign
• Texting while driving
• Speeding
• Driving under the influence
• Tailgating another vehicle

As the chart below shows, any traffic violation can cause an increase in your car insurance rates.

Auto Insurance Monthly Rates Based on Driving Record

Any blatant disregard for the road rules that result in an accident will clearly put one driver at fault.  

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Insurance Rate Increases After an At-Fault Accident 

Being responsible for a car accident can significantly raise your auto insurance rates. Your rates will go up depending on how bad the accident was, your insurance company, location, and similar factors. However, you can expect your rates to go up at least a few hundred dollars a year. 

To see how much insurance companies increase rates on average for a fault accident, take a look at the data below. 

Average Monthly U.S. Full Coverage Auto Insurance Rates with an Accident
Auto insurance rates are based on 45-year-old drivers with an accident vs. drivers with a clean record.

In most cases, the at-fault accident will stay on your record for three to five years, which means you’ll have to pay the increased rate for quite some time. In some cases, however, your insurance company may offer accident forgiveness. 

If you qualify and can purchase accident forgiveness, the insurance company will forgive your first at-fault accident, and you won’t face increased rates. 

How can I lower my rates after an at-fault accident?

If your rates increase substantially after an accident, don’t panic. There are still ways to reduce your coverage and make your rates more affordable. 

Some of the things you can do to reduce your car insurance rates after an at-fault accident include: 

• Drive safely. Maintaining a clean driving record after your at-fault accidents will go a long way to reducing your rates. 
• Drop optional coverages. If you struggle to afford your insurance, you may consider dropping optional coverages, such as comprehensive insurance or add-ons like roadside assistance. 
• Raise your deducible. Raising your deductible can significantly lower your rates if you can afford to pay a higher deductible after an accident. 
• Shop around. A different insurance company may have lower rates than your current one, so it’s important to shop around for cheap auto insurance after an accident and get quotes when your current rates are too high.
• Take advantage of available discounts. Participating in small auto insurance discounts like paperless billing or working towards bigger discounts for defensive driving courses can help reduce your rates. 

Just because you caused, an accident doesn’t mean you’ll have high insurance quotes forever. Following the tips above will help you reduce your auto insurance rates to a more reasonable level. 

At-Fault Accidents in Fault vs. No-Fault States 

Which driver is assigned the fault and is responsible for damage costs depends on whether the state is a fault state or a no-fault state. 

For example, your insurance will pay for your medical costs in a no-fault state. This means each driver is responsible for carrying medical insurance to protect themselves in an accident, regardless of who is at fault. 

In an at-fault state, the driver who caused the accident is responsible for paying for damages to others’ vehicles and any medical bills.

At this time there are 13 states (and territories) that have no-fault insurance laws; those states are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Puerto Rico, and Utah. All other states and the District of Columbia are at-fault states. Keep reading to learn how claims are settled in both types of states so you can better understand the state insurance laws that dictate these different policies. 

At-Fault State Accidents 

At-fault states, also known as tort states, hold the driver who caused the crash responsible for the damage and injury costs of other drivers. The at-fault driver’s insurance must pay for the other driver’s accident costs, so it’s vital to follow insurance laws and carry the correct liability amounts. 

The two coverages needed in at-fault states are property damage liability insurance and bodily injury liability insurance. Not carrying insurance in at-fault states is illegal and will result in the at-fault driver having to pay huge bills out of pocket. In addition, states charge uninsured drivers hefty fines.

Property damage liability will pay up to your policy limit for the other driver’s damages. You will have to pay any overages out of pocket, which is why it’s advisable to have a high liability limit. 

As for bodily injury liability, this will also pay up to the policy limit for injuries caused to other drivers, passengers, and pedestrians. 

Does full coverage cover at-fault accidents? The answer is yes. Full coverage includes liability protection up to your policy limits if you cause an accident. 

Here’s a look at the average annual auto insurance rates for full coverage auto insurance coverage in each state.

However, remember that if you cause an accident and want your insurance company to pay for the damages, you will need to carry collision and comprehensive insurance, also known as a full coverage policy. 

No-Fault State Accidents

In no-fault states, a degree of responsibility is still assigned to the drivers who caused the accident. Whoever caused the crash is responsible for any property damages, such as a smashed fender or broken fence. 

However, every driver is responsible for carrying personal injury protection (PIP) or MedPay. Therefore, regardless of who caused the accident, each driver’s liability insurance will pay for their own medical costs. 

Some states requiring drivers to have PIP to cover their medical expenses are Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. 

Even though these states are labeled as no-fault, the driver who caused the accident is still on the hook for property damages and general damages, such as pain and suffering for injuries (where allowed by state law). They just won’t have to pay for the other driver’s medical expenses. 

How Fault is Determined In An Accident

Naturally, no one wants to be at fault for an accident and stuck with expensive bills and higher insurance rates. This can lead to multiple disputes over who caused the accident and is responsible for paying for repairs. Ultimately, it falls to the insurance companies to decide who is at fault for the accident. 

Some of the things that the insurance company will look at in order to determine fault include: 

• Accident location and details
• Dashcam footage 
• Damages to vehicles 
• Driver statements 
• Police reports 
• Traffic footage 
• Witness statements 

In some cases, the blame will be easy to assign. However, if both drivers are partly to blame for the accident, or there are more than two cars involved, it may take longer for insurance companies to figure out who is responsible for what costs. 

What are you responsible for if you are at fault? 

Suppose you are at fault in an accident. In that case, your insurance is responsible for paying the other driver’s property damage bills and possibly their medical bills, depending on your state. 

In a no-fault state, even though you don’t have to pay for the other driver’s medical bills, as their insurance will cover it, you may still be sued for more money if their medical bills are astronomical and exceed their coverage. 

You will also be responsible for paying for your own property damages and medical bills, meaning you must file a claim with your provider. However, you will only be covered for property damages under your insurer if you carry collision coverage. You will have to pay out of pocket if you don’t have collision coverage. 

Because of the financial responsibility that falls on at-fault drivers, you may wonder — can you fight an at-fault accident? Unfortunately, unless a mistake was made in the reports unfairly assigning blame to you, it is hard to contest your fault in an accident in most cases.

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What To Do If You Cause An Accident 

What happens after a car accident that is your fault? If you caused the accident, it is important to keep yourself safe and document the scene. 

Some of the basic steps you should take after an accident, no matter who caused it, are: 

• Move your car out of the way. If the vehicle is driveable, you should move it out of the way of traffic. You should also put on your hazards to make the car more visible to other drivers. 
• Check for any injuries. Make sure to check for injuries on both you and anyone else involved. If anyone is seriously injured, do not attempt to move them. 
• Call the authorities. In order to avoid being charged with a hit and run, call the police to come to handle the situation and remain until they arrive. If someone is injured, request an ambulance as well. Police may give you a ticket, but it’s important to call them. 
• Exchange driver information. Make sure to take down all the other driver’s information and provide them with your information, such as insurance information, names, and phone numbers. The police will assist in this process. 
• Document the damages. It is important to take plenty of pictures of the accident, so you have your own photographic proof of damages in addition to the police’s documentation. 
• Report the accident to your insurance company. Call your insurance company to inform them about the accident. Then, if applicable, file an at-fault collision claim for your own damages. 

Properly documenting the scene and getting help from the police will help ensure that the other involved parties don’t try to change the story later to get more money. 

The Final Word on At-Fault Accidents 

Regardless of your state’s laws, causing an accident will result in higher insurance rates. In at-fault states, whoever caused the accident will be responsible for all parties’ medical and property damage bills. 

In no-fault states, at-fault drivers are only responsible for property damage bills and compensation for pain and suffering from injuries to others (where allowed). Drivers must carry PIP or MedPay in these states to pay for medical bills after an accident, regardless of who is at fault. 

After an at-fault accident, your rates will be higher. Search around for cheap auto insurance rates after an accident so you can save as much as you can. Use our free quote comparison tool to find the best auto insurance rates in your area.

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