If you are at fault in a car accident, your liability coverage generally pays for the injuries and property damage you caused to others, up to your policy limits, and you may see effects on your premium afterward.
Being at fault does not usually mean that you have to pay everything out of pocket, but it does have consequences that are important to understand.
How Liability Coverage Responds
The main purpose of liability coverage is exactly this situation. When you are at fault, your bodily injury liability coverage pays for the other party’s injuries and your property damage liability coverage pays for their vehicle and other property, each up to the limits on your policy. This is the coverage most states require you to carry.
What it does not cover is your own car; that is what collision coverage is for. So an at-fault crash typically means your liability coverage handles the other party’s losses, while your own vehicle damage depends on whether you carry collision coverage.
When Your Limits Matter
Liability coverage pays only up to your policy limits, and this is where at-fault crashes can become expensive. If the harm you caused exceeds your limits, for example a serious injury with medical costs above your bodily injury limit, you could be personally responsible for the difference.
This is why your limits matter as much as having coverage at all. Higher limits cost more in premium but provide more protection if you cause a serious crash.
The Effect on Your Premium
An at-fault crash commonly affects your insurance premium. Insurers view an at-fault accident as a sign of higher risk, and your premium may rise at renewal. How much depends on the insurer, your history, and the severity of the crash.
| Consequence | What to expect |
|---|---|
| Liability coverage | Pays others’ injuries and damage, up to limits |
| Your own car | Covered only if you carry collision |
| Premium | May rise at renewal after an at-fault crash |
| Accident forgiveness | May apply if you have that feature |
Some policies include accident forgiveness, which can prevent a first at-fault crash from raising your rate. To know what to expect, it is advisable to check whether you have it and how your insurer treats at-fault accidents.
What to Do at the Scene
Even if you think you caused the crash, handle the scene carefully. Check for injuries and call 911, exchange information, and document what happened. One important point: avoid admitting fault at the scene, even if you feel responsible.
The reason is that fault can be more complicated than it first appears. Other factors may have contributed, and a definitive determination comes later, based on evidence. Stick to the facts, cooperate with police, and let the investigation and the insurers sort out responsibility rather than deciding it yourself in the moment.
Report It and Cooperate
Report the crash to your insurer promptly, as your policy requires, even when you were at fault. Reporting lets your liability coverage do its job and protects you if the other party files a claim. Failing to report can create problems on top of the crash itself.
You should cooperate with your insurer’s handling of the claim and provide the documentation it needs. You can read our site’s common causes of car accidents guide covers how crashes happen and how to avoid them, which is the best long-term protection against being at fault again.
Frequently Asked Questions
What happens if I am at fault in a car accident?
Your liability coverage generally pays for the other party’s injuries and property damage, up to your policy limits. Your own car is covered only if you carry collision coverage, and your premium may rise afterward.
Will I have to pay out of pocket?
Not usually for the other party’s losses, as long as they fall within your liability limits. If the harm exceeds your limits, you could be personally responsible for the difference, which is why your limits matter.
Will my premium go up after an at-fault accident?
Often yes. Insurers view an at-fault crash as higher risk, so your premium may rise at renewal. Some policies include accident forgiveness, which can prevent a first at-fault crash from raising your rate.
Should I admit fault at the scene?
No. Even if you feel responsible, avoid admitting fault, since fault can be more complicated than it appears. Stick to the facts, cooperate with police, and let the investigation and insurers determine responsibility.
Do I still report the crash if I was at fault?
Yes. Report it to your insurer promptly, as your policy requires. Reporting lets your liability coverage respond and protects you if the other party files a claim. Not reporting can create added problems.
After an At-Fault Crash
If you were in a crash and need the police report for your insurer, our team at Local Accident Reports can help you obtain it, free and any hour of the day. You can request a free police report for the incident through our website.
To learn more, contact our team at 888-657-1460 with any questions about next steps.
Last reviewed: October 2026
This post was reviewed by Hernan Beresnak, Lead Editor, Local Accident Reports.
Content is provided for informational purposes only and does not constitute legal advice. Local Accident Reports is not a law firm and does not provide legal representation. Use of this website does not create an attorney-client relationship.
