Do I Have to Pay for an At-Fault Claim Out of Pocket?

Car accidents are scary at the best of times and devastating at the worst. While many drivers hope they will never have to file a claim on their insurance policy, the average driver is involved in about five car accidents during their lifetime. 

Driving carefully is important, but it is also important to know how a car insurance claim works in case you ever find yourself in the unfortunate position of causing an accident. 

How Does Fault Car Insurance Work? 

Fault or at-fault refers to which driver caused the accident. If you run a red light and hit another moving car that is crossing the intersection appropriately, for example, you will likely be declared at fault. 

The rules for fault differ per state, however. While some states are no fault states, meaning that fault is not taken into account when it comes to car insurance, most states operate on an at-fault system. Missouri is one of these at-fault states. If you cause an accident in Missouri, you will likely be held responsible for any damages or injuries you caused to other parties (such as drivers, passengers and pedestrians). 

Who Pays for an At-Fault Claim? 

The good news is that you will not necessarily have to pay for damages and injuries out of pocket after causing an accident. This is in part why most states require liability insurance. Liability insurance under an auto insurance policy helps cover expenses related to bodily injury and property damage you may cause to someone else while operating the vehicle, including medical bills. This insurance can also protect you from legal expenses if the victim decides to sue for additional compensation. 

States require all drivers to carry a certain amount of liability insurance. In Missouri, all drivers must carry at least: 

If you are not carrying the appropriate amount of insurance when you cause a car accident, you could face serious repercussions depending on where you live and the severity of the accident. Repercussions for an at-fault accident can include fines, license suspension, vehicle impoundment, lawsuits and even jailtime. If you are having trouble insuring your vehicle, be sure to speak with an insurance agent.