How Car Accident Compensation Works in California

Injured in an LA crash? Our attorneys can explain your rights and options

When faced with the aftermath of a car accident, victims often find themselves burdened with more than just physical injuries. From grappling with piles of medical bills to dealing with the prospect of long-term unemployment, the journey to recovery is filled with financial uncertainties.

How can victims ensure their medical expenses, present and future, are adequately covered?
What if I can’t go back to work?

At Oaks Law Firm, our attorneys are focused on ensuring that you receive fair compensation from the driver who caused the collision so you can focus on healing. Here’s what you need to know about how car accident compensation works in California.

Who pays for a car accident in California?

California follows an at-fault (tort) system, meaning the party that caused the accident pays for the victim’s damages. Many injury victims worry that they are partially at fault for the accident in which they got hurt, or partially negligent themselves. It is important to know that California’s pure comparative fault system allows plaintiffs to recover damages even if they are partially at fault.

Under California comparative fault law, even if the court determines that you bear some responsibility for the accident, you can recover damages from the defendant. However, your compensation can be reduced by your percentage of fault in the accident.

Determining fault

Determining who was at fault is a crucial first step to recovering financial compensation after a Los Angeles car accident. This usually requires a thorough investigation and the collection of evidence proving responsibility based on the legal principle of negligence. Essentially, negligence is the failure to take proper safety precautions. In order to establish negligence, an injured victim must show three things:

The defendant owed the plaintiff some duty of care under the law.
The defendant breached that duty of care through some action or omission.
The defendant’s breach was a substantial factor in causing some form of injury to the plaintiff.

Every driver owes a duty of care to the people and property around them. Examples of driver negligence in a car accident include distracted driving, impaired or drunk driving, fatigued driving, speeding, red-light running, and road rage.

What is covered in a car accident settlement?

When another party is at fault, injured victims have the right under California law to pursue compensation for damages, which can include losses such as medical bills, surgery costs, prescription medication bills, lost wages, pain and suffering, mental suffering, and emotional distress. Compensatory damages fall into two categories: “economic damages” and “non-economic damages.”

Economic damages are objectively verifiable financial losses like medical expenses, loss of earnings, burial costs, loss of use of property, costs of repair or replacement, and the costs of obtaining substitute domestic services.
Non-economic damages are subjective, non-monetary losses including, but not limited to, pain, suffering, inconvenience, emotional distress, loss of companionship or consortium. These types of losses are subjective, but our attorneys know how to maximize the amount an insurer pays.

How to pursue car accident compensation

In California, car accident victims have several options for pursuing compensation due to the fault and insurance laws that govern these incidents.

Filing a claim with your own insurance. Depending on the coverage you have, you might be able to file a claim with your own insurance company for damages:
- Personal Injury Protection (PIP). If you have PIP coverage, it can help cover medical bills and lost wages, regardless of who is at fault.
- Uninsured/Underinsured Motorist Coverage (UM, UIM). This applies if the other driver is at fault and does not have sufficient insurance to cover your damages.
Filing a third-party claim against the at-fault driver's insurance. If the other driver is at fault, you can file a claim directly with their insurance company. This requires proving the other driver's liability and may cover both property damage and personal injuries.
Filing a personal injury lawsuit. If negotiations with insurance do not yield satisfactory results, or if you need to recover damages not covered by insurance (like pain and suffering, which isn’t typically covered by PIP), filing a lawsuit against the at-fault driver might be an option.

Settlements from insurance companies are limited by the policy’s maximum coverage amounts. It’s essential to know these limits, as they may influence the strategy for pursuing additional compensation. Consulting with a car accident attorney can be invaluable, particularly when filing a lawsuit or dealing with significant injuries and damages. Attorneys can navigate the complexities of the law, negotiate with insurance companies, and argue your case in court if necessary.

Make your demand for maximum compensation heard

In California, you typically have two years from the date of the injury to file a car accident lawsuit. The timeline for claims against government entities is much shorter, often just six months. It is crucial to act quickly to preserve your rights and build a strong case. Gathering evidence, speaking with witnesses, and documenting your injuries are vital steps in ensuring that your claim is as comprehensive as possible.

Consulting with an experienced attorney at Oaks Law Firm can provide guidance on navigating these time-sensitive requirements and help you understand the full value of your claim. Our attorneys can negotiate with insurance companies on your behalf and, if necessary, represent you in court to secure the compensation you deserve. Don't wait until it's too late—take prompt action to make sure your voice is heard, and your rights are protected.