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Key takeaways
- In most states, after you cause a crash, your liability insurance pays for the other driver’s injuries and any damage to their vehicle.
- Twelve states have no-fault laws that require personal injury protection insurance, which pays for your medical expenses after an accident no matter who’s at fault.
- States have different laws that determine how a driver can seek payment for medical expenses and car repairs after an accident.
If you’re involved in an accident, the laws in your state will play a big part in deciding how your insurance will work.
The driver who causes an accident is the “at-fault” or negligent driver. In most states, the at-fault driver’s insurance pays for the injuries and property damage of the other people who were affected by the accident.
"No-fault" states work differently. In no-fault states, your own insurance covers your injuries no matter who was at fault.
You should expect your car insurance to get more expensive after an at-fault accident, no matter what kind of fault system your state has. Make sure to compare car insurance quotes from a few insurers after an accident to avoid paying more than you have to for coverage.
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🤓 Nerdy Tip
After an accident, try to stay calm. Check for injuries first. Then call the police, exchange information with other drivers and document the crash. Here’s what else you should do after an accident. Insurance after an at-fault accident
In most states, the driver at fault will have to pay for the other person’s injuries and any damage to their vehicle. This is covered by your liability insurance, which drivers must carry (or prove in another way that they could pay for the damage they might cause in an accident) in every state.
However, liability coverage won’t pay for your medical bills if you’re at fault. Instead, your health insurance or medical payments coverage will pay for any injuries you have from an at-fault accident.
Collision insurance, if you have it, will cover damage to your car whether you’re at fault for an accident or not.
No-fault states
Twelve states have no-fault insurance laws that may require drivers to carry no-fault insurance and limit when you can collect damages from an at-fault driver. These states are:
- Florida.
- Hawaii.
- Kansas.
- Kentucky.
- Massachusetts.
- Michigan.
- Minnesota.
- New Jersey.
- New York.
- North Dakota.
- Pennsylvania.
- Utah.
No-fault insurance, also referred to as personal injury protection (PIP), pays for your medical bills, lost wages and other expenses no matter who’s responsible for the crash. However, the driver who caused the accident will still pay for any damage to your car.
How fault is determined after a crash
Typically, an insurance adjuster will look at evidence such as police reports, vehicle damage and even weather conditions to determine how much a driver is at fault. Often, both drivers carry some degree of responsibility.
Before reaching a settlement, auto insurers must take into account negligence laws, which differ by state. These laws determine if you can seek payment from another driver after an accident and how much you can request. Different negligence laws include:
- Contributory: If you’re responsible for an accident, even if you’re only 1% at fault, you can’t seek compensation from another driver.
- Pure comparative: You can seek payment if you were at fault, but the amount will depend on your degree of responsibility. For instance, if you were 30% at fault for a crash, you can receive payment for only 70% of your vehicle repairs or medical bills.
- Modified comparative: You can seek compensation as long as you weren’t at fault for more than 50% or 51% of the accident, depending on the state. For example, if you were 60% responsible for a crash, you would not be able to seek payment from the other driver.
- Slight/gross comparative: You can seek compensation if your negligence was “slight” and the other driver’s was “gross.” There is no set standard for what is considered slight or gross.
An at-fault accident increases the cost of full coverage car insurance rates by 48% on average, according to NerdWallet’s rate analysis. The best way to lower your cost is to shop around. Compare car insurance rates with at least three insurers to find the cheapest option after a crash.
Methodology
NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for 35-year-old men and women for all ZIP codes in any of the 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.
These are average rates, and your rate will vary based on your personal details, state and insurance provider.
Sample drivers had the following coverage limits:
- $100,000 bodily injury liability coverage per person.
- $300,000 bodily injury liability coverage per crash.
- $50,000 property damage liability coverage per crash.
- $100,000 uninsured motorist bodily injury coverage per person.
- $300,000 uninsured motorist bodily injury coverage per crash.
- Collision coverage with $1,000 deductible.
- Comprehensive coverage with $1,000 deductible.
In states where required, minimum additional coverages were added. We added a single at-fault collision costing $10,000 in property damage for drivers with one at-fault crash.
We used a 2023 Toyota Camry LE in all cases and assumed 12,000 annual miles driven.
