Are you automatically at-fault if you don't have insurance?

Insurance companies determine fault by sending an adjuster to investigate an accident once a claim has been filed. The adjuster will consider several factors in order to determine fault, including driver and witness statements, the location of vehicle damage, and any citations issued after the wreck. The adjuster’s final assessment of fault will be based on the legal definition of ... read full answernegligence, which is when a driver fails to exercise the same amount of caution that a “reasonable person” would under the same circumstances.

Factors that Insurance Adjusters Consider When Determining Fault

• Driver and witness statements
• The location of vehicle damage
• Citations issued after the accident
• Dash cam footage
• The position of the vehicles

Accidents Involving Multiple Drivers

In accidents involving multiple drivers and claims, each insurer will assign an adjuster to investigate. If multiple drivers are insured by the same company, then the insurer will assign a separate adjuster to each party in order to avoid a conflict of interest.

For particularly severe multi-vehicle accidents, the process of determining fault can last much longer than it would for a simple fender bender. This is especially true if one driver disputes an adjuster’s findings, which can prolong the investigation even more. It’s also possible the adjuster may determine that multiple drivers share fault for an accident. In that case, the allocation of damages would depend on the state’s negligence laws.

To learn more, check out WalletHub’s guide to at-fault accidents.

If you’re in an accident without insurance and you are at fault, you will need to pay out of pocket for any damage or injuries you cause. You will also face your state’s penalties for driving without insurance, which could include fines, a suspended license, and even jail time. If you are uninsured and the other driver is at fault, however, their insurance will cover your bills up to their policy limits.... read full answer

Almost every state requires car insurance, with the exceptions of New Hampshire, Virginia, and remote parts of Alaska. In every other state, driving without insurance will result in steep penalties. Additionally, police officers can legally have your vehicle towed if you don’t have insurance. And even if insurance is not required in your state, you will still be financially responsible for any damage you cause.

Causing an accident without the financial safety net of a car insurance policy also leaves you vulnerable to lawsuits. In no-fault states, each driver’s insurance pays their basic medical bills, but drivers can sue for serious or particularly expensive injuries. However, fault laws do not affect property damage, so you will still be responsible for any damage you cause to other cars, buildings or mailboxes, for example. And in tort states, which use fault as a factor in determining who pays, you can be sued for expenses due to injuries or property damage. Even if you don’t have enough money to pay for the destruction you cause, courts can seize your assets or garnish your wages.

If you caused an accident without insurance and want to continue driving, you should purchase a car insurance policy immediately. Be aware, however, that drivers with a lapse in coverage will pay more for insurance since they are considered high-risk. A history of at-fault accidents will also increase your premium. With that in mind, WalletHub has ranked the cheapest car insurance companies for drivers with accidents, for your convenience.

Cheapest Car Insurance for Drivers with One At-Fault Accident

• AAA - $715 annually
• Geico - $900 annually
• Esurance - $1,103 annually
• USAA - $1,154 annually

The first thing you should do after a car accident that is not your fault is to make sure everyone inside your car is safe and uninjured. Next, call the police, take pictures of the scene, and exchange insurance information with the at-fault driver so you can file a claim with their insurer. You should also report the accident to your insurance company in case you need to file a ... read full answercollision, personal injury protection, or MedPay claim with your own policy.

What to Do After a Car Accident That’s Not Your Fault

1. Move your car away from oncoming traffic and address any injuries. If your car is driveable you should try to move your car out of harm’s way to avoid further accidents or injuries.
2. Call the police and file a report. This will help you further along the way when filing an insurance claim since a police report will most likely determine fault.
3. Get the other driver’s insurance information. Take a photo of their insurance card so that you can get in touch with their insurer if you need to file a liability claim.
4. Take pictures of the scene and damage to the cars. Insurers require evidence before they can settle a claim. Having pictures from the incident will help speed up the claim process.
5. Report the accident to your insurance company. Even if you don’t file a claim with your own insurance, you should still report the accident to your insurer since they might need to update information related to your vehicle.
6. Document any accident-related expenses. An accident can incur a bunch of hidden costs. Make sure you keep track of all expenses related to the accident so that you can be reimbursed.
7. File a property damage and/or bodily injury claim with the other driver’s insurance company. Having gathered all the pertinent information, contact the at-fault driver’s insurer and file a claim. Make sure you have all the information and documents mentioned above so that the process goes as smoothly as possible.

Filing an Insurance Claim When You’re Not at Fault

If an accident is not your fault, you can file a claim with the at-fault driver’s liability insurance. This will cover the cost of vehicle repairs and medical bills up to the limits of the driver’s policy.

Because it can take a long time for an insurance adjuster to officially determine fault, however, you can initially file a collision or personal injury claim with your own insurer to cover vehicle repairs and medical expenses, regardless of fault. Once fault is determined, your insurance company will recover the expenses from the at-fault driver’s insurer, and your deductible will be refunded.

Keep in mind that in no-fault states, most medical expenses are paid for by your own insurance policy, regardless of who is at fault. And if the driver is uninsured or doesn’t have enough insurance to cover your costs, you can file a claim with your uninsured/underinsured motorist coverage, if you have it.