How Does Car Insurance Work When You are at Fault?

Were You Involved in a Car Accident? Wondering, “How Does Car Insurance Work When You are at Fault?”

If you’ve recently been involved in a car accident, then you probably have a lot of stress and a lot of questions about the accident. If you were at fault for the accident, then you’re probably wondering, “how does car insurance work when you are at fault?” Maybe you’ve never been involved in a car accident before, or maybe you’ve never been the cause of a car accident. Either way, you deserve some piece of mind. So let’s answer that very stressful question that has been picking at your brain:

“How does car insurance work when you are at fault?”

First Things First: You May Not Actually Be at Fault!

It’s one thing to assume that you were at fault for the car accident, but it’s another to actually be deemed the at-fault-party from a legal standpoint. In order to be considered at fault for a car accident, you must first live in a “fault state”. In a fault state, the driver who has been deemed the at-fault-party is responsible for the damages of all the other drivers involved in the accident. Most states in the US are fault states. However, you’ll want to check to see if you live in a fault state or a no-fault state.

If you do live in a fault state, then the insurance companies of each driver involved in the accident will determine which driver was at fault. If you have been informed by your insurance company that you were at fault for the car accident, then you will be deemed the responsible party.

If You are at Fault, then Your Car Insurance Company is Responsible for Compensation

If you are deemed to be at fault for the accident, then your car insurance company will be responsible for paying for all or some of the damages to the other driver’s vehicle. After your insurance company has paid for the damages, your insurance premiums will go up as a result of the accident. Your unique insurance plan and carrier will determine how much your premium will be raised, but most insurance policies raise monthly premiums immediately following a car accident. Your insurance policy and carrier will also determine how long the increase will be in effect. You’ll want to speak with your insurance company to find out how long your insurance premiums will be raised as a result of your car accident.

Still wondering, “How Does Car Insurance Work When You are at Fault?” 

If you’re still wondering, “how does car insurance work when you are at fault,” then we are here to help! It’s only natural to have questions after you’ve been involved in a car accident. If you still have questions about this concept, then we’re here to help. The Insurance Stops is a trusted car insurance company in COS. We’re happy to answer the question, “how does car insurance work when you are at fault” as well as any other car insurance questions you may be asking yourself. 

Get in touch with us today!