Car Accident Compensation Laws In California (July 2025)

What to Do Right After a Car Accident in California

The moments after an accident are critical to safety and any future insurance claim or lawsuit. Here are the key steps you should take immediately after a car accident in California:

• Stop and check for injuries, as leaving the scene can result in hit-and-run criminal charges
• Move your vehicle out of traffic to prevent another accident if no one is seriously injured and the cars are drivable
• Get a police report for any moderate or severe accident
• Exchange identification and insurance information with the other drivers involved
• Take pictures of the vehicles, damage, skid marks, intersection or road conditions, and any visible injuries
• File a written report (Form SR-1) with the DMV within 10 days if the accident caused any injury or death, or if there was property damage of more than $1,000

California imposes duties on drivers to file reports and stay at the scene after accidents. Performing these steps also strengthens any compensation claim you may later make.

Auto Insurance Requirements and Coverage Rules

To legally drive in California, you must meet the state’s “financial responsibility” requirements. In practical terms, that means carrying auto insurance on your vehicle. Driving without insurance is illegal and can lead to fines, license suspension, and personal exposure to liability.

The minimum liability insurance limits in California are $30,000 for injury or death to one person, $60,000 for injury or death to more than one person in a single accident, and $15,000 for property damage.

Liability insurance pays for damage you cause to others. If you are at fault in an accident, your liability insurance can pay the medical bills, lost wages, and other losses of the other parties up to your policy limits. It can also pay to repair or replace their damaged vehicle or other property.

How Fault Affects Compensation in California

Under car accident compensation laws in California, the state follows the rule of “pure comparative negligence” (also called comparative fault), meaning each party’s percentage of fault reduces their share of the damages.

In practical terms, you can recover compensation from another at-fault party even if you were partially to blame for the accident. Your recovery is reduced in proportion to your degree of fault.

Fault in a car accident is determined by evidence, such as police reports, statements of drivers and witnesses, traffic laws and sometimes accident reconstruction. California Vehicle Code violations, including speeding, running a stop sign, and driving under the influence, that contribute to an accident will heavily factor into finding fault.

Types of Damages You Can Recover

When you file a car accident lawsuit in California, “damages” refers to the monetary compensation for the losses you suffered. Economic damages are the tangible, financial losses resulting from the accident. Typically, they are expenses that can be documented with bills, receipts or wage records. They may include:

• Medical expenses
• Lost wages and earnings
• Property damage
• Out-of-pocket expenses

In contrast, non-economic damages are the intangible, subjective losses that don’t have a clear monetary value. They include:

• Physical pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Disability or disfigurement
• Loss of consortium

Unlike economic damages, non-economic damages are subjective. There’s no bill for “pain” or “loss of enjoyment.” The amount is usually determined by negotiation or by a jury if it goes to trial.

What if the Other Driver Is Uninsured or Underinsured?

Even though car accident compensation laws in California require drivers to carry insurance, you’ll still share the road with roughly one in six motorists who are not covered or only carry the bare minimum.

If you collide with one of these drivers, your own uninsured (UM) and underinsured (UIM) coverage lets you file with your insurer instead. Your UM/UIM limits usually mirror your liability limits, and they cover you, your household, and any passengers.

If you don’t have UM/UIM, you could sue the other driver directly, but collecting on a judgment depends on their personal assets. Unfortunately, many uninsured drivers lack the resources to cover a verdict. Health insurance or collision coverage can help, though you’ll face deductibles and possible premium hikes after a claim.

How to File a Car Accident Compensation Claim

Start by notifying your insurer right away — state law expects you to report the crash, even if you weren’t at fault. Then gather all the evidence you’ll need and decide whether you’ll pursue a claim against the other driver’s carrier. Finally, be ready to negotiate or take your case to court if the talks stall.

Why Legal Help Can Increase Your Compensation

California’s rules leave little room for mistakes. If you miss a deadline or slip up on paperwork, you could lose your rights. Your attorney can handle the forms, meet all time limits, and shield you from recorded statements that might hurt your claim.

A car accident lawyer can also help build a solid case. They can find police reports, track down witnesses, pull surveillance videos and even bring in experts. This depth of evidence can help insurers take your claim seriously.

Connect With an Attorney Today

You don’t have to go it alone. ConsumerShield walks you through your options and connects you with attorneys who handle cases like yours. Request a free case review and lawyer referral to move your matter forward.