What happens if someone hits you with liability?
Asked by: Stewart Zboncak | Last update: January 28, 2026Score: 4.4/5 (20 votes)
If someone hits you, their liability insurance should pay for your car repairs and medical bills, but if they lack insurance or sufficient coverage, you'd use your own collision (for car damage) or Uninsured/Underinsured Motorist (UM/UIM) coverage (for injuries/damages), potentially involving a claim against their personal assets or even a lawsuit if damages exceed policy limits, highlighting why carrying UM/UIM is crucial.
Can you sue if you only have liability insurance?
Yes, someone can sue you—even if you have car insurance.
Many drivers assume insurance offers complete protection, but in reality, it only covers up to the limits of your policy.
What happens when someone accepts liability?
When an insurance company accepts fault or liability for an accident, they essentially say that their insured behaved unreasonably under the circumstances – and that their insured was at fault. Consequently, they (the insurer) may pay some or all of the damages that the accident victim claims.
What does liability coverage actually cover?
Liability coverage protects you financially by paying for damages, injuries, and legal costs when you're at fault for harming someone else or their property, covering expenses like medical bills, vehicle repairs, lost wages, and legal defense, but it never pays for your own injuries or your own property damage. It's a standard part of auto, home, and business policies, helping meet legal requirements and shielding your assets from third-party claims.
Will liability pay for my car?
Basically, liability coverage is a part of your car insurance policy, and helps pay for the other driver's expenses if you cause a car accident. It does not, however, cover your own. It's important to note there are two types of liability coverage: bodily injury and property damage.
Auto Insurance Claims Process: Not-At-Fault Accident
What happens when someone with liability insurance hits you?
No, your liability insurance covers the other driver if you hit them. However, if the other driver hits you, their liability insurance will help pay to repair or replace your vehicle and the medical expenses for you and your passengers, up to their policy limits.
What is not covered by liability insurance?
A standard liability policy generally doesn't cover intentional acts, damage to your own property, employee injuries (needs Workers' Comp), vehicle accidents (needs Commercial Auto), professional mistakes (needs E&O Insurance), pollution, or business interruption, instead focusing on third-party bodily injury or property damage from negligence, requiring separate policies for specific risks like auto, professional errors, or employee issues.
How does liability insurance work when it's not your fault?
Here's how it works: You're at fault: Your liability insurance pays for the other person's injuries and property damage. Someone else is at fault: Their liability insurance pays for your injuries and vehicle damage, at least up to the policy's limits.
What does liability insurance cover me for?
Liability insurance covers costs for bodily injury or property damage you cause to others when you're at fault, including medical bills, repair costs, lost wages, and legal fees, but it does not pay for your own injuries or damage to your property. It's a standard part of auto, home, and business policies, protecting you from financial ruin if you're sued for causing an accident or someone gets hurt on your property.
What does $1 million liability insurance mean?
A $1 million liability insurance policy means the insurer will pay up to $1 million for covered damages (bodily injury, property damage, personal injury) from a single incident (occurrence) or, depending on the policy, a total amount within a policy term (aggregate limit), with the insured paying any costs exceeding that limit, often serving as standard protection for small businesses. It's a common baseline for risks like customer slips, product harm, or advertising injury, but specific limits (per occurrence vs. aggregate) vary.
What are the consequences of liability?
A liable party will likely be required to pay monetary damages, though in rare cases they may also be required to complete specific performance.
Why should you never admit fault?
You should never admit fault after an incident, especially a car accident, because even saying "I'm sorry" or "I was distracted" can be used against you by insurance companies and in court to assign liability, potentially costing you compensation for your own injuries, increasing your premiums, or leading to lawsuits, even if you were only partially at fault. It's crucial to remain calm, stick to factual information exchange (like insurance details), and avoid making definitive statements about who caused the accident until a thorough investigation by authorities and legal professionals can determine the true facts.
How long does a claim take once liability is accepted?
Straightforward cases where the other side admits liability may settle in as little as 4-6 months. Complex cases involving serious injuries can take two years or longer. The court will set a mandatory timetable to keep your claim moving toward a final hearing or settlement.
Is it worth suing after a car accident?
Deciding to sue for a car accident is a personal choice, but a lawsuit may be worth the effort when your damages are substantial and insurance and/or at-fault parties are not adequately covering them, or when liability for the crash is in dispute.
What is the 80% rule in insurance?
The "80% insurance rule" in homeowners' policies requires you to insure your home for at least 80% of its total replacement cost to avoid coinsurance penalties and receive full coverage for partial losses; if underinsured (below 80%), the insurer reduces payouts proportionally, making you responsible for more of the cost, a concept also applied to some flood insurance policies.
How much compensation for anxiety after a car accident?
Compensation for anxiety after a car accident varies widely, from a few thousand dollars for mild, temporary stress to over $100,000 for severe PTSD or chronic conditions, depending on diagnosis, treatment costs, and impact on life, with severe cases often involving ongoing therapy, diagnosis, and documentation. Amounts are calculated as non-economic damages (pain and suffering) using methods like multipliers or per diem, and require strong medical evidence to prove the accident caused the anxiety.
Do I get paid with liability insurance?
If you're found legally responsible for an accident that injures others, BI liability coverage comes into play in the case of a covered loss. This insurance doesn't pay for your own injuries, it's meant to help people you may have harmed. Medical bills — this is one of the most common expenses.
What does liability actually cover?
Liability coverage in your car insurance policy pays for property damage and/or injuries to another person caused by an accident in which you're at fault. This type of auto coverage is required by most states to legally drive your vehicle.
How much does liability insurance usually cover?
The minimum amount of car insurance you'll typically need is state-required liability coverage. This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person.
What if someone hits me and I have liability insurance?
Will your car be covered if someone hits you under your liability insurance? Unfortunately, no. Liability insurance will cover any liability or responsibility you have for paying for damages relating to an accident.
Why does my insurance go up if the accident wasn't my fault?
A not-at-fault accident can still increase your insurance because insurers see it as a sign of higher future risk, indicating you're statistically more likely to have another claim, even if you weren't to blame for the first one; they also consider administrative costs and your overall claims history, and some states allow rate hikes for any accident involvement to cover these increased risk factors.
What triggers a liability claim?
The injury must have been caused by negligence
In order for your injury to be eligible for public liability claims, it must have been caused by negligence. This means that the person who caused your injury must have failed to take reasonable care to prevent it from happening.
Does liability insurance cover your car at all?
Repairs or replacement for another person's car or property you damage in an accident. Other vehicle owners or property owners affected by the accident. Liability insurance does not cover your own injuries or damage to your vehicle.
What will insurance not pay for?
Most health insurance will not cover elective or cosmetic procedures, beauty treatments, off-label drug use, or brand-new technologies. If health coverage is denied, policyholders can appeal for exceptions or allowances based on an individual's situation and prognosis.
What are the limitations of liability coverage?
The limit of liability on an insurance policy is the maximum amount that an insurance company pays for a specified loss, such as damage to your home or accusations that you caused someone else harm. Sometimes this idea is described as a coverage amount or coverage limit.