Effects of an At-Fault Accident

An at-fault accident is an accident in which one party is identified as the cause of the accident. Typically, the police or another agency with authority over car accidents labels on party as “at-fault” by issuing that party a ticket. Many counties and states require that an officer responding to an automobile accident issue a ticket to the party believed responsible for the accident. An example of an at-fault accident is a rear-end collision in which the driver of the car at the back of the accident would be held responsible.

Effect on Liability

Because a party has been labeled as responsible for the accident there is typically no debate about who is liable for the accident. Because of this, insurance companies cannot dispute who requires reimbursement. This usually means that reimbursements and other payouts for the accident occur relatively quickly and outside of court.

This does not mean, though, that at-fault accidents are never litigated. At-fault accidents can still be argued in court about the amount of damages to award, but not about who is responsible for the accident.

Effect on Coverage

If a party has been found to be responsible for causing an accident, he or she may find that their insurance company has limited or reduced liability. The basis for this would be found in the contract of coverage, which would need to clearly state that in an at-fault accident the insurance company is not liable for the full amount of purchased coverage.

An at-fault accident can also have the effect of dramatically increasing the responsible party’s insurance coverage to increase in cost or not be renewed at the next renewal period. While an accident will be removed from a driver’s record after three to five years, it will still affect insurance coverage and rates until the time of its removal.

Effect on Personal Liability

The party at-fault for the accident may find him or herself responsible for the damages in excess of coverage limits or not recoverable from the insurance company. In this situation, he or she would need to pay out-of-pocket for the damages caused by their actions. These expenses may be for physical injury or damage to the vehicle.

Getting Legal Help

Because of the serious consequences that can result from an at-fault auto accident, if you have been involved in such an accident it is important for you to contact an attorney. An attorney will be able to provide you with recommendations and assistance in limiting your personal responsibility and increasing the chances of your insurance company paying up to the maximum limits for the other party’s injuries and damages.