California operates under a “fault”-based system for auto accidents, formally known as a “tort” system. This means the driver who is legally responsible for causing the collision is also financially responsible for the resulting harms, including vehicle damage, medical expenses, lost wages, and pain and suffering. This foundational principle shapes the entire legal and insurance landscape in the state. Establishing fault is paramount, and it is typically determined by investigating traffic laws (the California Vehicle Code) and evidence from the scene, such as police reports, witness statements, and physical evidence.
Financial Responsibility Laws: The Mandatory Insurance Requirement
Every driver in California must satisfy the state’s financial responsibility law. The most common way to do this is by carrying auto insurance that meets the minimum liability limits. It is illegal to drive without it. The minimum required coverage is often expressed as 15/30/5:
- $15,000 for bodily injury per person.
- $30,000 for bodily injury per accident.
- $5,000 for property damage per accident.
These limits represent the maximum the insurance company will pay for a single accident. It is crucial to understand that these are the absolute minimums and are often insufficient to cover the full costs of a serious collision, especially in a high-cost state like California. If you are at fault and the damages exceed your policy limits, you can be held personally liable for the difference, potentially putting your personal assets at risk. Carrying higher limits, such as 100/300/100 or more, is strongly recommended for greater financial protection.
Uninsured (UM) and Underinsured (UIM) Motorist Coverage
California law requires insurance companies to offer Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. You must sign a written waiver if you wish to decline this crucial protection. These coverages are designed to protect you and your passengers.
- Uninsured Motorist Coverage (UM): This applies if you are hit by a driver with no insurance, a driver who flees the scene (hit-and-run), or if the at-fault driver’s insurance company denies coverage or becomes insolvent. It covers medical expenses, lost wages, and pain and suffering up to the policy limits you select.
- Underinsured Motorist Coverage (UIM): This applies when the at-fault driver has insurance, but their liability limits are too low to cover the full extent of your damages. Your own UIM coverage can then kick in to cover the gap, up to your chosen policy limits.
Having robust UM/UIM coverage is one of the most important protections you can buy, as it effectively steps in to provide the insurance the other driver should have had.
Comparative Negligence: How Fault is Apportioned
California follows a “pure comparative negligence” rule. This is a critical legal doctrine that significantly impacts injury claims. Under this rule, a injured party can recover damages even if they are partially to blame for the accident. However, their total financial recovery will be reduced by their percentage of fault.
For example, if a jury determines your total damages are $100,000 but finds you 30% at fault for the accident (perhaps for speeding), you would still be able to recover $70,000 from the other driver. Conversely, if the other driver is found 70% at fault, they can only recover 70% of their damages from you. This system allows for a more nuanced and fair apportionment of financial responsibility based on each party’s actual contribution to the crash.
The Statute of Limitations: Critical Filing Deadlines
The statute of limitations is a law that sets the maximum time after an event within which legal proceedings must be initiated. Missing this deadline will almost certainly bar you from ever recovering compensation.
- Personal Injury: For injuries to people, you have two years from the date of the accident to file a lawsuit (California Code of Civil Procedure § 335.1).
- Property Damage: For damage to your vehicle or other property, you have three years from the date of the accident to file a lawsuit (California Code of Civil Procedure § 338).
It is vital to consult with a lawyer well before these deadlines approach, as investigation and pre-litigation demands can take considerable time.
What to Do After an Accident: A Legal Checklist
Your actions immediately following a collision can profoundly impact your ability to successfully navigate an insurance claim or lawsuit.
- Ensure Safety and Call 911: Check for injuries and move to a safe location if possible. Call the police to the scene; a official report is invaluable evidence.
- Exchange Information: Obtain the name, address, phone number, driver’s license number, license plate number, and insurance information from all drivers involved. Avoid discussing fault or making statements about the accident.
- Document the Scene: Use your phone to take extensive photographs and videos of the vehicle damage, license plates, the overall scene, traffic signs, skid marks, and any visible injuries.
- Seek Witnesses: Get contact information from any witnesses who saw what happened. Their independent accounts can be crucial later.
- Seek Medical Attention: Even if you feel fine, get checked by a doctor. Some injuries, like whiplash or concussions, have delayed symptoms. Medical records also create an essential link between the accident and your injuries.
- Notify Your Insurer: Report the accident to your insurance company promptly, as most policies require timely notification. Provide basic facts but avoid giving a detailed recorded statement or accepting a quick settlement before consulting a lawyer.
- Consult an Attorney: Before speaking extensively with any insurance adjuster—yours or the other party’s—consider speaking with a qualified California personal injury attorney. They can protect your rights, handle communications, and ensure you are not taken advantage of.
Common Legal Disputes and How They Are Resolved
Disagreements over fault and the value of a claim are common. Insurance companies may deny a claim or offer a low settlement based on arguments that you were partially at fault, that your injuries are not as severe as claimed, or that they are not related to the accident. Resolving these disputes often involves a negotiation process backed by evidence: medical records and bills, repair estimates, expert testimony, and proof of lost income. If a fair settlement cannot be reached, the next step is to file a lawsuit in civil court. The vast majority of cases settle before trial, but the possibility of a trial is a key factor in motivating serious settlement negotiations.
Special Considerations: Hit-and-Run, Uninsured Drivers, and Exceptions
Hit-and-run accidents are particularly complex. If the driver cannot be identified, you must rely on your own insurance. This is where your UM coverage becomes essential. You must also report the hit-and-run to the police within 24 hours and to your own insurance company as soon as possible. If you are uninsured yourself, your options are severely limited. You cannot recover non-economic damages (like pain and suffering) even if the other driver was entirely at fault (California Civil Code § 3333.4). You can only sue for economic damages like medical bills and lost wages, and even that recovery can be challenged.
