At-fault accident
An at-fault accident is a vehicle accident in which an insured driver is legally responsible for all or part of the injury or property damage. The driver's liability insurance may pay covered claims from others, up to the policy limits, and the accident may affect premiums, discounts or renewal depending on state law and the insurer's rating plan.
Also called: at-fault determination, at fault
An at-fault finding means the insurer says you caused all or part of the crash. Three things follow. Your liability coverage handles the other people's injury and property claims up to your limits, your own car's damage goes to collision coverage if you bought it, and the accident may count against you when the policy is rated or renewed.
How liability limits pay out after an at-fault accident
Liability coverage pays others, not you, and it stops at the limits on your declarations page. Take New York's minimum limits of $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage, according to the New York Department of Financial Services auto insurance page (opens in a new tab). Suppose the at-fault driver causes $40,000 of covered injury to one person and $18,000 of covered property damage.
Hover or tap a row to highlight it.
| Claim | Covered loss | Policy limit | Insurer pays | Above the limit |
|---|---|---|---|---|
| Bodily injury, one person | $40,000 | $25,000 per person | $25,000 | $15,000 |
| Property damage | $18,000 | $10,000 per accident | $10,000 | $8,000 |
| Total | $58,000 | $35,000 | $23,000 |
The insurer may defend you against a covered claim, but the policy generally does not pay above its limits, so the $23,000 could become your personal responsibility in a judgment or settlement, according to the NAIC's guide to liability limits (opens in a new tab). Damage to your own car is a separate claim under collision coverage, if you carry it, minus its deductible.
Limits, deductibles and how an accident affects your rate
Choices made before an accident decide how much the policy absorbs.
- Liability limits. Limits are written as three numbers. A 25/50/15 policy pays up to $25,000 per injured person, $50,000 per accident for injuries and $15,000 for property damage. Higher limits raise the most the insurer will pay and generally the premium. In New York, property damage limits of $15,000, $25,000, $50,000 and higher are generally available for extra premium.
- Collision coverage. It pays covered damage to your car regardless of fault, minus your deductible, and is optional under most state laws, though a lender or lessor may require it. The guide to comprehensive vs collision insurance compares the two.
- Deductibles. New York insurers commonly offer collision and comprehensive deductibles of $100, $200, $250, $500 and $1,000. A higher deductible means you pay more of a covered loss and may lower the premium.
- Surcharges and discounts. In New York, many rating plans may add up to 40% to the premium for a first at-fault accident and may remove a safe-driver discount, with accidents generally counted over an experience period of about three years. The insurer's filed rating plan and state law set the actual result.
A not-at-fault accident can still matter. You may use your own collision, medical payments or uninsured motorist coverage, and state law and the insurer's filed rules may allow some consideration of accident history at renewal.
Where the term shows up
"At-fault accident" is mainly an auto insurance term, for personal and commercial auto policies. It ties to liability, uninsured motorist, collision and PIP coverage and to the accident rules in a rating plan. You'll see it on quotes and applications that ask about past accidents and fault, and on renewal notices, premium-change notices, claim letters and settlement letters. The declarations page shows the limits, deductibles, vehicles and drivers that decide how an at-fault claim is paid.
An insurer's fault finding is separate from a traffic ticket, civil liability or DMV points, and the New York Department of Financial Services distinguishes insurer rating points from DMV license points.
Connecticut and New York limits on accident surcharges
Both states restrict when an accident can raise your premium; neither changes what legal responsibility means or stops a covered claim from being paid.
Connecticut bars a surcharge on liability or physical damage premiums for any accident involving only property damage of $1,000 or less, for the first property-damage-only accident over $1,000 within the insurer's experience period, and for certain accidents caused by someone other than the named insured, a resident relative or a person who customarily drives the car, under Conn. Gen. Stat. § 38a-686 (opens in a new tab). The Connecticut car insurance requirements guide covers the state's required coverages.
New York bars a premium increase based only on an accident with aggregate property damage of $2,000 or less, with exceptions for bodily injury and multiple accidents, under N.Y. Ins. Law § 2335 (opens in a new tab). Insurance Regulation 100, 11 NYCRR § 169.1 (opens in a new tab), adds that two or more property damage accidents in the experience period may allow a surcharge. New York is also a no-fault state: basic no-fault benefits of $50,000 per person pay specified economic losses regardless of fault, while fault still matters for property damage and for lawsuits over serious injury or losses above no-fault benefits.
Questions to ask your agent or insurer
Useful when a fault decision arrives.
- What facts and policy provisions support the finding that I was at fault, and was fault assigned fully or in part? Fault affects claim payment and premium rating.
- Which coverage pays the other person's injury and property claims, and what limits remain? Bodily injury and property damage have separate limits.
- Will this accident bring a surcharge, a lost discount, an underwriting action or nonrenewal, and for how long? The answer depends on state law and the insurer's filed plan.
- If my car is damaged, do I have collision coverage, what is the deductible, and will using it affect recovery from the other driver? Liability coverage pays others, not you.
- What deadlines and documents apply to my claim or a dispute? New York generally requires written no-fault notice within 30 days, with an exception for reasonable justification, according to the New York DFS no-fault FAQ (opens in a new tab).
Frequently asked questions
Short answers on fault and coverage.
Does an at-fault accident always raise my premium?
No. The result depends on state law, the insurer's rating plan, the accident's severity, prior accidents and any discounts. Thresholds like Connecticut's $1,000 and New York's $2,000 property damage limits rule out surcharges for some smaller accidents.
What is the difference between at-fault and no-fault insurance?
"At fault" is about who caused the accident. "No-fault" refers to PIP benefits your own policy pays for specified injury losses regardless of who caused it. In New York, additional PIP can raise the available benefit above the $50,000 basic amount to $100,000 or more.
Does homeowners or renters insurance use the same idea?
Those policies can include liability coverage for accidental injury or damage, but the phrase "at-fault accident" belongs mainly to auto insurance. A homeowners or renters liability claim is read under that policy's own liability provisions.