How are victims compensated when you are at fault in an accident? If you caused an accident, you are financially responsible to the victim for medical and repair bills along with compensation. Do not admit fault in the accident, no matter what. Your insurance company will undertake a complete investigation and determine fault and your exposure. You are required to carry minimum limits of liability coverage that will help pay for the victims damages which is why it is very important to weigh your potential exposure to your net worth when deciding how much coverage to buy. Remember, it is always better to have more coverage than less.