How Insurance Companies Determine Fault in Accidents

Determining who is at fault is essential for auto insurance companies when a car accident occurs. This decision affects how claims are paid, whether premiums increase and who bears financial responsibility. While fault may seem obvious in some cases, insurers follow a structured process to ensure fairness and accuracy.

5 Steps Insurers May Take When Investigating Accidents to Determine Fault

Insurance carriers may need to conduct an exhaustive analysis of accidents to identify the at-fault party in an accident. Although exact processes may vary, these investigations may include the following steps:

1. Gathering initial reports. The process begins with collecting statements from all parties involved, including drivers, passengers, and witnesses. Police reports are especially valuable, often including an officer’s assessment of the scene and any citations issued.
2. Reviewing physical evidence. Insurers examine photos of vehicle damage, skid marks, road conditions, and traffic signs. In some cases, dashcam footage or surveillance video from nearby businesses can provide critical insight into what happened.
3. Applying traffic laws. Adjusters compare the evidence to local traffic laws. For example, if a driver ran a red light or failed to yield, that violation may clearly indicate fault. These legal standards help insurers make objective decisions.
4. Determining negligence. Depending on the state, insurers may assign partial fault to multiple drivers. In comparative negligence states, each party’s degree of fault affects how much they can recover. In contributory negligence states, any fault may bar recovery entirely.
5. Consulting experts. For complex cases, insurers may bring in accident reconstruction specialists or legal advisors to clarify the sequence of events.

Once fault is determined, insurers notify all parties and proceed with claim settlements. If disputes arise, the case may go to arbitration or court.

We’re Here to Help

Contact Cathy Boyd's 1st Class Insurance Services in Haines City, FL, today to learn more about the ins and outs of auto coverage or compare quotes for suitable policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.