How does fault affect car insurance claims?

Fault affects car insurance claims by determining which driver’s insurance company will cover the damage. In most states, the at-fault driver’s liability insurance will cover everyone else’s medical bills and vehicle repairs, and the at-fault driver will have to use other types of insurance to pay for their own expenses. No-fault states are a notable exception to this rule, since they require each driver to cover their own medical expenses after an accident, regardless of fault.

How Fault Affects Car Insurance Claims 

• If you are at fault, you have to file a claim with your own insurer to cover your expenses.
• If you are not at fault, then you’ll file a claim with the other driver’s liability insurance, though you can use your own insurance as well.
• If you live in a no-fault state, you have to use your own insurance to cover your medical bills, regardless of who is responsible for the accident.
• Fault can be shared, which may limit damages.

When a car insurance claim is filed after an accident, an insurance adjuster will investigate and make a determination of fault. If the adjuster determines that multiple people are at fault for the wreck, then the claim will be affected by your state’s negligence laws. For example, some states do not allow you to collect damages after an accident if you did anything to contribute to it. Other states allow you to collect reduced damages based on your share of fault.

To learn more, check out WalletHub’s guide to car insurance claims.