A person who carelessly operates a vehicle may be required to pay any damages caused by their carelessness, either to other persons or to their property. Generally, people who operate automobiles must exercise "reasonable care under the circumstances." Failure to use reasonable care is the basis in most lawsuits for damages caused by an automobile accident. A lawsuit may be brought against:

• A driver by another driver who was injured in an accident
• A pedestrian on the sidewalk
• A passenger in the automobile

A driver may also be liable for an accident caused by intentional conduct or reckless conduct. A driver who is reckless is one who drives unsafely, with willful and wanton disregard for the probability that the driving may cause an accident.

Automobile accidents often are caused by factors in addition to the carelessness or recklessness of drivers.

• If an automobile accident is caused by a defect in an automobile, the automobile manufacturer or supplier may be responsible for the injuries caused under the law of Product Liability.
• The person who improperly repaired the automobile, resulting in injury, may also be liable.
• If an accident is caused by an intoxicated driver, a bar or social host may be liable for serving an obviously intoxicated guest, who then drives and has an accident causing injuries under the law of Alcoholic Beverage Liability.

Filing and Accident Report

State laws require a person driving an automobile involved in an accident to file an accident report if there is personal injury, death, or a specified amount of property damage. The number of days within which a report must be filed and the amount of property damage triggering the requirement varies greatly; from a requirement to file a report "immediately" to a 30-day requirement, from as little as $200 of damage to as much as $1,000. Some states also have laws requiring a person operating a vehicle involved in an accident to remain at the scene of the accident and to report it to authorities.

Automobile Insurance Laws

Most states have automobile insurance laws requiring the owner of a vehicle to have a certain amount of insurance on the vehicle. The purpose of these laws is to protect the interests of other drivers, who may be in an accident caused by the person required to have the insurance. The required insurance helps to assure that the injured person will receive compensation for any injuries caused by the driver of the insured vehicle. In these states, drivers are usually required to have an "insurance card", evidence of the required insurance, in their possession when driving the car. Many states also require drivers to pay for "uninsured motorist coverage," permitting a person injured by an uninsured motorist to collect damages from their own insurance.

About one-third of the United States has required automobile "No Fault" insurance laws. Under these laws, insurance companies issue a policy to a driver, and that policy pays for personal injury damages to the insured driver, the driver's passengers, and any pedestrians injured by the insured driver regardless of who caused the accident. The purpose of these laws is to compensate people for injuries from automobile accidents without the need for a lawsuit.