Vidal, who only sustained minor injuries in the crash, had his driver's license revoked and must report to the Chilean consulate in Milan on a monthly basis.
While Sanchez was disappointed about Vidal's actions, he made it clear that the entire Chilean team will support the Juventus midfielder.
"I told him 'Arturo, you better bust your a–', Sanchez said in his press conference prior to Chile's Copa America match against Bolivia. "It's very hard what happened with him but as a group, the least we can do is put up with it as a team.
"There has been indiscipline, we were wrong, you are right about that. But we are a family and we are there to support him."
Sanchez also denied speculation that head coach Jorge Sampaoli and the rest of the team would not support Vidal as they were angered and ashamed by his reckless actions.
"I hate it when people say things which are not true," he said. "All the players were with him. I hope that the people will be with him on Friday, like all his colleagues have been.
"The important thing is that Arturo, his wife and everyone else are well. The case of Arturo should now close and we can concentrate on the Copa America."