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?

Create an Account

Already have a user account?


When you become a member of our site, you will have full access to all of our courses and quizzes. Plus, you'll have access to any new courses and quizzes that we add during your membership. You will also be enrolled in our members-only newsletter where we share additional information exclusively for you. Sign up now and start educating your teens and young adults on how to stay out of legal trouble and have a brighter future.