Contributory vs. Comparative Negligence

You can tell who is at fault in a car accident by considering driver and witness statements, dash cam footage, the location of vehicle damage, the position of the vehicles, or any citations issued after the accident. Insurance companies will also use adjustors and accident reconstruction experts to determine fault in car accidents. These expects consider factors such as the point of impact, evidence of sudden acceleration, and the angle of the steering wheel.

How to Determine Fault in a Car Accident

• Take pictures of the vehicle damage and accident scene.
• Find witnesses who saw what happened.
• Give your statement to the police and file a report, to aid in their investigation.
• Provide the insurance adjuster with all of your evidence and information.

Who Determines Fault After a Car Accident?

When you file a claim after a car accident, the insurance company will assign an adjuster to your case. Adjustors evaluate all of the evidence related to the accident and determine who is at fault.

Insurance adjusters make this decision using the legal definition of negligence, which is when a driver fails to exercise the same amount of caution that a “reasonable person” would under the same circumstances.

States have different ways of handling at-fault accidents based on the degree of negligence shown by each driver. Each system affects how damages can be awarded differently, too.

State Negligence Laws & Fault in Car Accidents

Comparative Negligence

Expenses are covered based on the degree of responsibility that each driver has for the accident. Used in 12 states, including California and Florida.

Modified Comparative Negligence

Your expenses will only be covered by the other driver's insurance if you are less than 51% at fault. Used in 33 states, including Texas and Illinois.

Contributory Negligence

You cannot recoup expenses at all if you share any blame for the accident. Used in five states, including Maryland and Virginia, plus the District of Columbia.

How to Make the Fault Determination Process Easier

The more information and evidence that you gather after a car accident, the easier the insurance adjuster's job will be. Since liability can sometimes come down to your word versus the other driver's, get the names and contact information of any witnesses to the accident. Also, prior to leaving the scene, take plenty of pictures of the damage to both vehicles, the debris from the accident, and anything in your surroundings that could be relevant.

You might need to call the police and file a report, too, depending on the extent of any injuries and property damage. Officers might issue citations as they investigate the accident, and while a citation doesn't legally prove who was at fault, it could be used as evidence of negligence in a lawsuit.

If you're at fault in a car accident, your liability insurance pays for the other driver's car repairs and will likely cover any doctor's bills if they're injured. No-fault states are the exception, as they require each driver to use their own insurance to pay for medical expenses after an accident. But regardless of the state, fault always dictates whose liability insurance pays for property damage.

Your liability insurance never covers your own expenses, so you will need collision insurance, personal injury protection (PIP), or MedPay in order to avoid paying out of pocket for an at-fault accident. Some states require drivers to have PIP or MedPay, while collision insurance is usually required if you are leasing or financing your car.

After an at-fault accident, car insurance rates go up by an average of 48%. The exact amount that your premium will go up depends on a few factors, including your state and how much damage you caused. But any increase is only temporary, usually lasting about 3-5 years. And if you have accident forgiveness with your insurance company, your rates might not go up at all.

Ultimately, no one wants to be at-fault in a car accident, but it's important to understand how at-fault accidents work just in case. With that in mind, here's a quick summary of what you really need to know.

Here's What Happens If You Are At-Fault in a Car Accident

• Your liability insurance should pay for the other driver's expenses.
• You will need to use other types of car insurance to cover your own repair and medical bills.
• Your car insurance rates will go up by an average of 48% for 3-5 years.

When you are not at fault in an accident, the other driver's insurance should cover the damage to your car and your medical bills, up to their policy limits. If it takes time to determine fault, you can file a collision claim with your insurer, which will then seek repayment from the at-fault driver's insurer. In most states, you should file bodily injury claims directly with the at-fault driver's insurer, though no-fault states require you to use your own insurance to pay for medical bills.

How Car Insurance Works When You're Not At Fault

• The at-fault driver's bodily injury liability insurance will cover your medical expenses in most states.
• If you live in a no-fault state, you'll need to file medical claims with your own personal injury protection (PIP) insurance.
• The other driver's property damage liability insurance will cover repairs to your car and other items, like fences and mailboxes.

If the at-fault driver does not have insurance, you can file a claim with your own uninsured motorist (UM) insurance, if you have it. Depending on your policy, you might also have underinsured motorist coverage (UIM), which applies if the other driver's liability limits aren't high enough to pay for all the damage.

For more information, check out WalletHub's guide on what to do after a car accident.

You can make a car insurance claim if you were not at fault by contacting the at-fault driver's insurance company and filing a claim with their liability coverage. Depending on your state and the types of car insurance on your policy, you might also need to file certain claims with your own insurer. For instance, if you live in a no-fault state, you will need to file any injury claims with your own personal injury protection (PIP) coverage.

How to File a Car Insurance Claim If It's Not Your Fault

• Vehicle Damage: File claims with the at-fault driver's property damage liability insurance.
• Injuries in No-Fault States: File a PIP claim with your own insurer.
• Injuries in Tort States: File a bodily injury liability claim with the other driver's insurer.
• Uninsured Driver: File a claim with your own uninsured motorist coverage, if you have it and the other driver doesn't have insurance.

If it's taking a while for fault to be determined after an accident, you can file a collision claim with your own policy for damage to your car. Then, if the other driver is found to be at fault, your insurer will seek reimbursement from the at-fault party or their insurer for the cost of the claim and your deductible. This process of claim-and-deductible recovery is called subrogation.

For more information, check out WalletHub's guide to car insurance claims.

Yes, insurance pays if you are at fault in an accident. Liability insurance pays for the other driver's medical bills and car-repair expenses when you are at fault, and collision insurance, personal injury protection (PIP) or medical payments coverage (MedPay) can pay for your own expenses when you are at fault.

Collision insurance will pay to repair or replace your vehicle after any accident, including ones that you cause. Similarly, personal injury protection and medical payments coverage will pay for your medical bills after an accident, regardless of fault. Several states require PIP or MedPay as part of their minimum coverage limits. And while collision insurance is not mandatory according to any state laws, it is usually required for vehicles that are leased or financed.

Liability insurance is the only type of car insurance coverage required in many states. But if you have a liability-only policy, then you will have to pay out of pocket for your expenses if you are at fault in a car accident. As a result, it's usually recommended that you purchase as much insurance as you can afford, even if it's more than your state requires.

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

Yes, it matters who is at fault in an accident because fault affects whose insurance company pays for the damage. In most cases, the at-fault driver's liability insurance pays for everyone else's property damage and injuries, up to the limits of their policy. No-fault states are an exception, to an extent.

When Fault Does & Does Not Matter in No-Fault States

Fault doesn't matter when it comes to basic injury claims in no-fault states, which require drivers to file a personal injury protection (PIP) claim for their own medical bills after an accident, no matter who is at fault. But even in no-fault states, the at-fault driver's insurance is responsible for paying property damage liability claims and medical expenses above a certain limit.

How Fault Affects Damages After an Accident

In addition to assigning responsibility for an accident, fault determines the damages that drivers can collect after an accident. One driver might be primarily responsible for causing an accident, but the other drivers can still be partially responsible if they contributed to causing the wreck.

State laws regarding shared fault vary. But in some states, you can't collect any damages from an at-fault driver if you did anything to contribute to the accident.

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

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 collision, 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.

Yes, someone can sue you for a car accident even if you have insurance. Unless you live in a no-fault state, you can easily be sued for financial and personal damages in car accidents that you cause. If you have a liability insurance policy (which is required in most states), your insurance company will likely pay for an attorney to defend you in court. However, there are certain situations where they aren't obligated to do so.

When Insurance Doesn't Have to Pay for a Lawyer

• You did not notify the insurance company within a certain timeframe, which can be anywhere from 5-30 days, depending on the specifics of the policy.
• The cost of the other driver's damages exceeds the limits of your policy.
• You intentionally caused the accident.

If you have car insurance and you're sued after a car accident that you caused, it's likely for one of two reasons: either you don't have enough insurance to cover all of the other driver's expenses or the insurance claim process is taking a long time. If the first applies to you, your insurance company is under no obligation to help you once they've paid up to the limits of your policy.

However, the rules for filing a lawsuit after a car accident are different in no-fault states. No-fault states require drivers to carry personal injury protection (PIP) insurance, which provides coverage for minor injuries sustained in an accident. This eliminates the need for small personal injury cases to go to court, as every driver is protected by their own insurance policy. In these 12 states, you can only file a lawsuit against the other driver if your injuries are severe or your economic damages have exceeded a certain amount. The specific thresholds for each scenario vary depending on the state.

While you can't control whether or not the other driver will sue you after an accident that you caused, there are steps that you can take to put yourself in the best position possible. The most important things are to notify your insurance company of the accident as soon as possible and to understand the limits of your policy. If you do end up being sued, take the time to understand what exactly you're being sued for and what steps your insurer is taking to help you.

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.

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

You sue the other driver after a car accident, not their insurance company. If there is a judgement made in your favor after suing the other driver, their insurer will pay for it, up to the limits of the driver's policy. Once the limits have been reached, it is the other driver's responsibility to pay the remaining sum. However, your ability to collect damages will vary between states.

State Laws Regarding Accident Lawsuits

How you are awarded damages in a lawsuit after an accident depends heavily on your state's laws on negligence. Four states and the District of Columbia follow a rule of “contributory negligence.” Under this rule, if you contributed to the accident at all, then you won't be able to collect damages. Most other states use a “comparative negligence” system, which means that damages are awarded based on the individual's share of the fault.

There are also 12 no-fault states that strictly limit when you can file a lawsuit against the other driver. You can only sue the other driver if you sustained a severe injury, since your own insurance policy pays for your medical expenses regardless of who is at fault.

When You Can Sue an Insurance Company Directly

In certain situations, it could be possible to sue the other driver's insurance company if they are acting in bad faith. Examples of this would be if they refuse to pay a claim that you are owed, or if they deny your claim without explanation. However, this is a tricky route to navigate, and it should only be utilized if the insurance company acts in an unethical manner.

If the Other Driver is Uninsured

If the other driver is uninsured, a lawsuit might be tricky. An uninsured driver is unlikely to have the assets to pay any damages you might be awarded.

In these situations, you need to rely on uninsured/underinsured motorist coverage, personal injury protection (PIP), or collision coverage to pay for your expenses when the accident was not your fault. If you don't carry any of these types of coverage, then you'll be responsible for paying all of your expenses out of pocket.