If you’re found at fault in a car accident, your auto liability coverage may help pay for injuries and property damage you cause to others, up to your policy limits. If the damages exceed your coverage limits, you could be personally responsible for the remaining costs.
Understanding what happens after an at-fault accident can help you make informed decisions about your insurance coverage before a claim ever occurs.
What Does It Mean to Be at Fault in a Car Accident?
Being at fault means you are considered legally responsible for causing the accident.
Insurance companies determine fault by reviewing information such as:
- Police reports
- Driver statements
- Witness accounts
- Photos and videos
- Vehicle damage
In some accidents, fault may be shared between multiple drivers depending on the circumstances and state laws.
Will My Insurance Pay If I’m At Fault in an Accident?
In many cases, yes.
Liability coverage is specifically designed to help pay for injuries and property damage you cause to others when you’re found legally responsible for an accident. Coverage is subject to your policy limits and the details of the claim.
What Happens Financially After You’re Found at Fault for an Accident?
Once a claim is reported, the insurance company will investigate what happened and determine who was responsible for the accident.
If you’re found at fault, your insurance company may:
- Pay for damage to the other person’s vehicle or property
- Pay for injuries suffered by others
- Negotiate settlements related to the claim
- Provide a legal defense if a lawsuit is filed
The amount paid depends on the facts of the accident and the liability limits on your policy.
Can You Be Sued After an At-Fault Accident?
Yes. Even when insurance is involved, the injured party can file a lawsuit seeking compensation for their damages.
If the accident is covered, your insurance company may provide a legal defense and work to resolve the claim within the terms of your policy. If damages exceed your coverage limits, you may have additional personal financial exposure.
What Does Property Damage Liability Cover?
Property damage liability helps pay for damage you cause to someone else’s property.
This may include:
- Vehicle repairs
- Replacement of a totaled vehicle
- Damage to fences, buildings, mailboxes, or other structures
- Damage to a borrowed vehicle when you’re legally liable for the damage and no other insurance applies
Property damage claims can add up quickly, especially when newer vehicles or multiple vehicles are involved.
What Does Bodily Injury Liability Cover?
Bodily injury liability helps pay for injuries you cause to others in an accident.
Depending on the circumstances, this may include:
- Medical bills
- Rehabilitation expenses
- Lost wages
- Legal settlements
- Court judgments
Serious injuries can result in costs that far exceed the damage to the vehicles involved, which is why liability limits are an important part of your policy.
What Happens If Damages from an Accident Exceed Your Liability Limits?
Your policy only pays up to the liability limits you’ve selected. If the damages from an accident exceed those limits, you could be responsible for the remaining costs.
Many drivers carry only the minimum liability limits required by law. In Idaho, those minimum limits are:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $15,000 for property damage
While those limits satisfy Idaho’s legal requirements, they may not be enough to fully cover a serious accident involving injuries, multiple vehicles, or significant property damage.
Real-Life Example: How Liability Limits Can Affect You
Imagine you’re looking down at your GPS for a moment and rear-end a newer SUV at a stoplight. The other driver suffers injuries that require surgery and physical therapy, and their vehicle sustains significant damage.
After investigating the accident, the insurance company determines you were at fault. Your liability coverage may help pay for:
- Repairs to the other driver’s vehicle
- Medical expenses related to their injuries
- Lost wages if they cannot work
- Legal expenses if a lawsuit is filed
If the total damages exceed your liability limits, however, your insurance may not be enough to cover the full loss, potentially leaving you responsible for costs above your coverage limits.
This is one reason many drivers choose higher liability limits than the state minimum. Some also add an umbrella policy, which can provide an additional layer of liability protection above their underlying auto policy limits.
How Can You Protect Yourself Before an Accident Happens?
A serious accident can create expenses that add up quickly. That’s why it’s important to periodically review your liability limits and make sure they still fit your situation.
As your savings, home equity, income, or other assets grow, your insurance needs may change as well. Some drivers also choose to add an umbrella policy for an extra layer of protection above their auto policy.
The goal is not just to protect your vehicle. It’s to protect your financial future if you’re ever held responsible for a major accident.
Frequently Asked Questions
Does being at fault automatically mean my insurance rates will increase? Not always. Rate changes depend on factors such as the severity of the accident, your driving history, your insurer’s underwriting guidelines, and state regulations.
What if both drivers share responsibility for the accident? Not every accident is entirely one person’s fault. In some cases, insurance companies determine that both drivers contributed to the accident and assign a percentage of fault to each. The amount each driver’s insurance pays may depend on that percentage and the laws in the state where the accident occurred.
What if the other driver’s medical bills are higher than my coverage limits? If damages exceed your liability limits, you may be personally responsible for the remaining amount. Some drivers choose an umbrella policy to provide additional liability protection above their auto policy limits.
Does liability coverage pay to repair my own vehicle? No. Liability coverage is designed to pay for damage or injuries you cause to others. Damage to your own vehicle is typically covered by collision coverage if it is included on your policy.
Can someone come after my personal assets after a car accident? Potentially. If you’re found legally responsible for damages that exceed your insurance limits, personal assets could be at risk. This is one reason many people review their liability limits and consider additional protection.
Final Takeaway
Being found at fault in a car accident can have financial consequences that go far beyond vehicle repairs. Liability coverage is designed to help protect you when you’re responsible for injuries or property damage caused to others.
Many drivers spend time thinking about how to protect their vehicle but spend less time thinking about how to protect their finances if they cause a serious accident. Reviewing your liability limits periodically can help you understand what protection you have in place and whether it still fits your situation.
If you’re not sure how your policy would respond after an at-fault accident, a local agent can help you review your coverage and discuss whether your current liability limits align with your needs.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
