License, Insurance, and Registration Please

Accidents & Liability: Lesson 1

Insurance And Fault In An Accident

  • Who caused the accident is extremely important to insurance companies, and to law enforcement.
    • Insurance will need to know if they’ll have to pay out under the policy details – the driver at fault determines a lot of insurance issues.
    • Law enforcement will want to know if problems like drugs and alcohol were an issue.
    • Your insurance policy might pay nothing if you had alcohol in your system when you caused a wreck!
  • If an accident is your fault, liability insurance will not cover damage to you or your car.
    • The insurance company and the police determine who was at fault in the accident.
    • You must buy more insurance from your insurance company to cover damages to your own property in an accident that is your fault…
  • But remember: you have to buy insurance BEFORE an accident happens for the insurance company to pay for anything.
  • If you have an accident and don’t have insurance, or don’t have much insurance coverage, the financial issues can linger in your life for years.
  • The person you hurt can take you to court, the judge can order you to pay, and you will have a “judgement” against you.
    • With a judgement against you, you can be considered a bad credit risk, your wages can be attached, and your bank accounts and wages can be taken to pay the judgement.

What is an SR22?

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