Guide · California
Car Insurance Claims After an Accident in California
Which coverage pays for what, the rules insurers must follow, and the decisions that cost people money.
Updated . General information, not legal advice about your situation.
Legal review: Elham Azimy, California State Bar No. 207274 (law and claims only).
After a crash you may be dealing with two or three insurance companies at once—your own, the other driver’s and sometimes a health insurer—each with different obligations to you. Understanding which coverage pays for what, and the rules California imposes on insurers, prevents the most common and expensive mistakes.
Coverages and what they pay
| Coverage | Whose policy | Pays for |
|---|---|---|
| Bodily injury liability | At-fault driver’s | Your injuries, lost wages, pain and suffering, up to their limits |
| Property damage liability | At-fault driver’s | Your vehicle repair/value, rental, personal property |
| Collision | Yours | Your vehicle regardless of fault, minus deductible (recovered if other driver at fault) |
| Medical payments (med-pay) | Yours | Medical bills for you and passengers regardless of fault, typically $1,000–$10,000 |
| Uninsured/underinsured motorist (UM/UIM) | Yours | Your injuries when the at-fault driver has no or insufficient insurance; hit-and-run |
| Rental reimbursement | Yours | Rental car during repairs if you bought it |
| Health insurance | Yours | Medical treatment, subject to reimbursement from any settlement |
California minimum limits
Since January 1, 2025 (SB 1107), California’s minimum liability limits are $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage—up from 15/30/5, which had been in place since 1967. Many drivers carry only the minimum, which is quickly exhausted by a hospital visit. UM/UIM coverage, which insurers must offer but which drivers may reject in writing, is often the difference between a fair recovery and none. See uninsured driver guide.
The rules insurers must follow
California’s Fair Claims Settlement Practices Regulations (10 CCR § 2695.1 et seq.) and the Unfair Insurance Practices Act (Insurance Code § 790.03) require insurers to acknowledge a claim within 15 days, accept or deny it within 40 days of receiving proof of claim, pay accepted claims within 30 days, and not misrepresent coverage or pressure claimants with unreasonably low offers. Insurers must also explain in writing the basis for any denial. Violations can be reported to the Department of Insurance, which handles consumer complaints. Note that these duties run most strongly to the insurer’s own policyholder; the other driver’s insurer owes you less, which is why your own coverage matters.
Recorded statements and authorizations
Your own policy requires cooperation, which includes a statement. The other driver’s insurer has no right to one, and adjusters are trained to elicit admissions (“I’m fine,” “I didn’t see them”). Medical authorizations should be limited to records relevant to the crash and a reasonable period before it; blanket authorizations give the insurer your lifetime history to search for pre-existing conditions.
Total loss and property damage
If repair costs plus salvage value exceed the vehicle’s actual cash value, the insurer may declare a total loss and must pay the pre-crash value including sales tax and fees (10 CCR § 2695.8). You may dispute the valuation with comparable listings. You may keep the vehicle and accept value minus salvage. Rental is owed for a reasonable period, including a reasonable time after a total loss offer to find a replacement.
The injury settlement: timing and releases
An injury settlement is a one-time payment in exchange for a release of all claims arising from the crash. It cannot be reopened if a later MRI shows a herniated disc. Settle when your doctors have a clear picture of your recovery and future needs, or when the statute of limitations requires a decision. Before settling, confirm that health insurance liens, Medi-Cal and Medicare reimbursement rights and medical provider liens are resolved. See medical bills after a car accident.
Policy limits and underinsured claims
If your damages exceed the at-fault driver’s limits, the insurer will often offer the limits. Before accepting, notify your own UIM carrier and obtain its consent, since settling with the at-fault driver without consent can waive UIM benefits. UIM in California is “offset”: your UIM limit minus what you received from the at-fault driver. Also investigate whether the driver was working, whether the vehicle owner is a separate person and whether an umbrella policy exists.
Common questions
Will my rates go up if I file a claim for a crash that was not my fault?
California law (Insurance Code § 1861.02 and Proposition 103) prohibits insurers from raising rates for accidents in which you were not principally at fault.
The other insurer accepted fault but is slow to pay for my car. What can I do?
Use your own collision coverage if you have it; your insurer will recover from theirs. Otherwise, document delays in writing and file a complaint with the California Department of Insurance if the insurer violates the time limits.
How long do I have to file an insurance claim?
Policies require “prompt” notice, usually within days. The legal deadline to sue is two years for injury and three for property damage. UM/UIM claims have their own contractual deadlines—typically two years to make a demand or begin arbitration—so do not let them lapse while negotiating with the at-fault insurer.
Describe what happened. Attorney Elham Azimy reviews every inquiry personally and, if we can help, calls you to talk it through. Free evaluation; no fee unless we recover for you.
Sources and official resources
- Vehicle Code § 16056 (minimum liability insurance limits)
- California DMV — insurance requirements
- California Department of Insurance — auto claims help
- California Fair Claims Settlement Practices Regulations (10 CCR § 2695.1 et seq.)
- Insurance Code § 11580.2 (uninsured and underinsured motorist coverage)
- Code of Civil Procedure § 335.1 (two-year limit for injury claims)
Links go to official government, court and public-health sources. Laws change; verify current text before relying on it.