What is At-Fault?
In the context of insurance, being “at-fault” means that a party is responsible for causing an accident or damage. Insurance companies use the at-fault designation to decide which party’s insurance will cover the costs associated with damages, medical expenses, or other liabilities. This designation determines how claims are paid and whether the responsible party’s insurance premiums may increase.
In at-fault states, the driver’s insurance company responsible for the accident must pay for the damages. For example, if a driver runs a red light and collides with another vehicle, they would be considered “at-fault,” their insurance would be used to cover repair costs and other damages incurred by the other party.
It is also important to note that some accidents may involve shared fault, meaning more than one party is responsible. In these cases, the insurance companies may divide the liability according to the percentage of fault assigned to each driver.