At-Fault
A determination that a person is legally responsible for causing an accident or loss. In insurance, this designation affects how claims are handled, which company pays, and how the incident impacts future premiums.
Example
“The insurance adjuster determined that Sarah was at-fault for the collision because she ran the red light, so her insurance company had to pay for both vehicles' damages.”
Memory Tip
Remember 'AT-FAULT = AT the Front of Accountability, Understanding Liability Timeline' - the at-fault party is at the front of the responsibility line.
Why It Matters
Being found at-fault typically means your insurance pays for damages and your premiums may increase significantly for several years. This determination can cost you thousands in higher premiums and affect your ability to obtain affordable coverage in the future.
Common Misconception
Many believe that if police don't issue a ticket, no one can be found at-fault for insurance purposes, but insurance companies conduct their own investigations. Police reports influence but don't determine fault for insurance claims, and you can be found at-fault even without receiving a traffic citation.
In Practice
Tom rear-ends another car, causing $8,000 in damages to the other vehicle and $3,000 to his own. The insurance company finds Tom 100% at-fault. His liability coverage pays the $8,000 to the other driver, while his collision coverage (with a $1,000 deductible) pays $2,000 for his own car repairs. Tom's premium increases from $150 to $210 monthly for the next three years, costing him an additional $2,160 in higher premiums.
Etymology
Combines 'at,' indicating position or state, with 'fault' from Latin 'fallere' meaning 'to deceive' or 'to fail,' evolving to mean responsibility for a mistake or accident.
Common Misspellings
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