Getting into a car accident is stressful enough, but questions about insurance can add to the confusion when you’re not at fault.
A common concern is, What does liability insurance cover if you’re not at fault? Understanding how liability insurance works after an accident is key to knowing your rights and financial responsibilities—especially with guidance from a personal injury lawyer.
Liability insurance is designed to cover the costs of damages and injuries you’re responsible for in an accident. But, what happens when you’re the victim?
It’s critical to know what coverage options are available to you, how accountability is determined, and what steps a car accident lawyer can help you take to ensure you don’t end up paying out of pocket for something that wasn’t your fault.
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What Does Liability Insurance Cover If You’re Not at Fault?
If you’re not at fault in a car accident, the at-fault driver’s liability insurance typically covers your medical bills, vehicle repairs, lost wages, and pain and suffering—up to their policy limits. In New York, your no-fault (PIP) insurance pays first, but if your injuries are serious or exceed coverage limits, you can pursue compensation from the at-fault party through a third-party claim. If they’re uninsured or underinsured, your own uninsured motorist coverage may apply. Shared fault can reduce your payout, and rental car accidents involve specific coverage rules that may depend on your auto policy, the rental company, or your credit card benefits.
Why Choose Hach & Rose?
Legal cases involving auto accidents and insurance can be complicated, but Hach & Rose make the process more transparent and more effective for injury victims. After an accident, you deserve a team that listens and fights hard for justice.
Here’s why you can rely on us when pursuing compensation after an accident:
- Proven results
Our track record includes significant settlements and verdicts that have changed lives. We know how vital financial recovery is for injured clients. - Deep knowledge of New York insurance laws
Knowing the nuances of local insurance regulations gives us a clear advantage in securing fair outcomes. We ensure insurance companies uphold their obligations. - Client-focused approach
We take the time to understand your situation, answer all your questions, and provide guidance tailored to your needs. - Unwavering dedication to justice
We’re not afraid to take on large insurers or proceed to trial when necessary. Settlements are only acceptable when they truly meet your needs.
What Does Liability Insurance Do?
Liability insurance is mandatory for drivers in New York. Its primary purpose is to pay for damages or injuries caused to others when you’re at fault in a car accident.
This insurance typically has two components:
- Bodily injury liability
Covers medical expenses, lost wages, and pain and suffering for victims injured because of the at-fault driver. - Property damage liability
Covers the cost of damages to another person’s vehicle or property, like a fence or mailbox, resulting from the accident.
If You’re Not at Fault
The at-fault driver’s liability insurance should cover your losses when you’re not at fault for a car accident. This includes vehicle repairs, medical treatments, and other accident-related expenses.
However, there are specific steps you’ll need to follow to ensure you’re properly compensated.
Scenarios Where Liability Insurance May Pay
- Vehicle damage repairs
If your car is damaged, the at-fault driver’s liability policy should cover repairs. You’ll need to provide the repair estimate, photographs of the damage, and any corresponding receipts. - Medical expenses
Bodily injury liability insurance typically covers your medical bills if you’re injured. This could include hospital stays, physical therapy, prescription medications, or long-term care for severe cases. - Lost income
If your injuries prevent you from working, the at-fault driver’s liability insurance may compensate for the wages you lose during recovery. - Pain and suffering
Non-economic losses like pain and suffering or emotional distress from the accident may also qualify for compensation under liability insurance.
How New York’s No-Fault System Affects Claims
New York operates under a no-fault insurance system. This means that no matter who causes the accident, your insurance policy covers your injuries and losses first, up to your policy limits. Your Personal Injury Protection (PIP) coverage handles these expenses.
However, if your damages exceed your PIP coverage and if the accident caused serious injuries as defined by the state, you can file a claim against the at-fault driver’s liability insurance.
Examples of serious injuries under New York law include fractures, significant disfigurement, or injuries that limit normal bodily function for at least 90 days.
How to Proceed After an Accident
The days and weeks after a car accident are vital for building your case and ensuring your physical and financial recovery.
Focusing on these steps can strengthen your claim and protect your rights:
- Schedule follow-up medical appointments
Even if the initial treatment seemed sufficient, make follow-up appointments with your doctor or specialists. Some injuries take time to appear, such as whiplash, internal damage, or concussions. Maintain records of all visits, prescriptions, and updated medical reports. - Document your recovery
Create a recovery journal to track your progress. Note pain levels, mobility changes, and any limitations the injuries impose on your daily life. This can be helpful evidence when negotiating for compensation. - Organize necessary documents
Collect and store all paperwork related to the accident, like police reports, hospital bills, vehicle repair estimates, and communications with insurers. Keeping everything in one place makes it easier to support your case later. - Inform your employer
Notify your employer about time missed from work due to the accident or related treatments. Request official documentation that outlines lost wages or any adjustments made to your job duties. - Contact your insurance provider
Provide updates about your situation and ongoing medical care. Stick to factual statements and refrain from speculating about the accident or assigning blame. These updates may help avoid delays in processing your claim. - Consult legal counsel
Reach out to a personal injury lawyer to evaluate your case. A lawyer can help assess your documentation, files, and records while advising on the next steps to maximize your compensation. - Monitor insurance communications
Be cautious about interactions with the at-fault party’s insurer. Avoid agreeing to settlements or making recorded statements without consulting legal counsel. Insurance companies may offer less than what you’re entitled to. - Stay engaged with your medical treatment
Complete the full course of treatment recommended by healthcare providers. Skipping appointments or failing to follow medical advice could weaken your claim by making it harder to prove the severity of your injuries. - Watch for symptoms of delayed injuries
Some injuries, like soft-tissue damage or PTSD, may not show up immediately. Report any new symptoms to your doctor as soon as they appear and update your medical records accordingly. - Consider seeking emotional support
Accidents often take an emotional toll. Look into counseling or therapy to address any anxiety, depression, or trauma while navigating life post-accident. Mental health records may also support your claim for non-economic damages. - Stay focused on your case
Cooperate with your legal team promptly and respond to any requests for information. Remaining organized and diligent ensures your claim is handled smoothly and has the best chance of success.
Taking these steps can help protect your financial future while allowing you to focus on recovery after an accident. Each action contributes to the strength and validity of your personal injury claim.
What If the At-Fault Driver Is Uninsured?
Not all drivers follow the law and maintain adequate insurance. If you’re involved in an accident with an uninsured driver, your uninsured motorist coverage can help.
Uninsured motorist coverage is mandatory in New York and provides a safety net when the at-fault driver lacks insurance or flees the scene. These policies may cover medical expenses, lost wages, property damage, and pain and suffering.
This coverage also applies when the at-fault driver’s liability limits are too low to cover all damages.
What Can Affect Your Compensation?
Insurance companies are businesses, and they often look for ways to minimize payouts after an accident.
Factors that can influence your compensation include:
- Shared fault
New York follows a pure comparative negligence system. If you’re partially responsible for the accident, your compensation may be reduced by your percentage of fault. - Policy limits
The at-fault driver’s liability insurance will only pay up to the policy limits. Other legal avenues may be necessary to recover the remainder if your damages exceed those limits. - Timeliness
Acting quickly is essential. Delayed claims can result in missed deadlines or lost evidence that might weaken your case. - Insurance adjuster tactics
Adjusters may downplay your injuries or offer quick lowball settlements. Be cautious and consider consulting with legal professionals before accepting any offers.
Filing a Third-Party Claim
When the at-fault driver’s liability insurance compensates you, you’ll need to file a third-party claim. This involves submitting documents and evidence directly to their insurer.
Keep the following in mind when filing your claim:
- Submit all required forms as soon as possible to meet deadlines.
- Provide documentation for medical expenses, property repair estimates, and proof of lost income.
- Stay consistent in your statements and avoid exaggerating or minimizing the facts.
When Should You Consider Filing a Lawsuit?
Most claims involving liability insurance are resolved through negotiations with the insurance company.
However, lawsuits may be necessary if:
- The insurer denies your claim without valid reasons.
- The settlement offer doesn’t adequately address the costs of medical care, lost income, and long-term effects.
- You encounter disputes regarding fault or shared liability.
A lawsuit allows you to present evidence before a court, but it’s also a more time-consuming and costly process than settling.
How Liability Insurance Interacts with Rental Cars After an Accident
Liability insurance can become complicated when a rental car is involved in an accident.
This type of insurance typically covers damages or injuries you cause while driving your vehicle, but additional rules and policies may apply when someone rents a car. Knowing how liability insurance interacts with rental cars can help you avoid surprises.
Most drivers have two primary sources for liability coverage when renting a car. First, it could come from their personal auto insurance policy if it extends to rental cars.
Second, it could come from the rental car company, which often offers liability coverage as part of their rental agreement or as an optional purchase.
If the renter causes an accident, their personal auto liability insurance usually steps in first, provided the policy explicitly includes rental cars. This means their insurance will cover damages or injuries to others, up to the policy’s limits.
Meanwhile, the rental car company’s optional liability insurance acts as secondary coverage, covering any damages exceeding the limits of the renter’s personal insurance.
When an accident occurs and the renter is not at fault, liability coverage from the at-fault party’s insurance typically covers repair costs or medical expenses. If the at-fault driver lacks coverage, the renter’s uninsured motorist coverage may help instead.
Many rental car insurance policies also include protections for situations where the liable party’s insurance is insufficient. Rental car agreements may contain specific terms, so renters should review them before signing. Some rental car companies require you to report the accident immediately to avoid voiding coverage.
Others may withhold liability protections if it’s proven that the driver violated the agreement, such as driving while intoxicated or letting an unauthorized person operate the car.
It’s also worth noting how credit cards fit into the equation. Many credit cards offer secondary coverage for rental cars, but this typically extends only to damage to the rental vehicle. Liability coverage through credit cards is rare and is not a substitute for proper auto insurance.
Drivers renting cars should always confirm whether their insurance policy or their rental agreement fulfills state liability insurance requirements. New York, for instance, mandates minimum liability coverage for all vehicles, including rentals.
Rental companies operating in the state must provide this basic coverage, even if the renter declines additional coverage options.
Seek Legal Help to Maximize Compensation
If you’re struggling to recover damages or facing challenges with insurance post-accident, our team at Hach & Rose can help. Contact us at (212) 779-0057 today for a free consultation. We’ll guide you through the process and fight to protect your financial interests.