California Motor Vehicle Accident Rules & Laws

Insurance Systems & Requirements

System type

California follows an “at-fault” insurance system, meaning that the driver determined to be responsible for an accident must pay for the resulting damages. This places a burden on accident victims to prove the at-fault driver’s liability in order to recover compensation. Victims can seek damages from the at-fault driver’s insurance for medical expenses, property damage, and other losses. This system contrasts with “no-fault” states, where drivers file claims with their own insurers regardless of fault.

Minimum liability requirements

California law requires all drivers to carry minimum liability insurance to ensure financial protection in case of an accident. These minimum limits are:

• $15,000 for bodily injury or death of one person per accident
• $30,000 for bodily injury or death of more than one person per accident
• $5,000 for property damage per accident

While these limits may cover minor accidents, severe accidents often result in damages that exceed these amounts, highlighting the importance of optional coverages such as MedPay or UM/UIM insurance.

Uninsured & Underinsured Motorist Coverage (UM/UIM)

Although California drivers are not legally required to carry UM/UIM coverage, these policies provide crucial financial protection in cases where the at-fault driver either has no insurance or insufficient coverage.

• UM coverage: Covers your injuries and medical expenses if the at-fault driver lacks insurance altogether
• UIM coverage: Steps in when the at-fault driver’s policy limits are too low to cover all your losses

This additional protection ensures that accident victims are not left with significant out-of-pocket expenses due to another driver’s lack of adequate insurance.

Non-compliance penalties

Driving without insurance in California can result in serious consequences, including:

• Fines ranging from $100 to $200 for a first offense and $200 to $500 for subsequent offenses
• Vehicle impoundment and additional fees to recover the vehicle
• Potential suspension of driving privileges until proof of insurance is provided

Offenders may also face personal financial responsibility for damages caused during an accident, leaving them vulnerable to lawsuits and significant financial losses.

MedPay Coverage

California drivers can opt for Medical Payments (MedPay) coverage, which helps cover out-of-pocket medical expenses regardless of fault. This can include ambulance fees, hospital bills, and other immediate medical costs, offering peace of mind and financial assistance after an accident.

Rideshare insurance requirements

California imposes specific insurance requirements on rideshare drivers, such as those working for Uber or Lyft. The coverage requirements depend on whether the driver is actively providing a ride or simply logged into the rideshare app:

Logged into the app (no passengers):

• $50,000 for bodily injury per person
• $100,000 for bodily injury per accident
• $30,000 for property damage

Providing a ride (passenger onboard):

• Minimum commercial liability insurance of $1,000,000

These requirements are in place to protect both passengers and other road users in the event of an accident. Rideshare companies typically provide coverage during rides, ensuring that victims can recover damages.

Fault & Negligence Laws

Fault-based system:
California operates under an at-fault system, where the driver responsible for causing the accident is financially liable for damages. Accident victims can file claims against the at-fault driver’s insurance policy or pursue legal action to recover damages for medical expenses, property repairs, and lost wages. This approach emphasizes accountability but requires victims to demonstrate the other driver’s negligence.

Pure comparative fault:
California’s pure comparative fault rule allows accident victims to recover compensation even if they are partially at fault for the incident. However, the total compensation is reduced by the victim’s percentage of fault. For example, if a victim is found to be 20% responsible for the accident and is awarded $100,000 in damages, they will receive $80,000. This rule ensures that all parties are held accountable for their actions and can recover proportional damages.

Passenger rights:
Passengers injured in car accidents have the right to seek compensation for their injuries. They can file claims against the at-fault driver, whether it is the driver of the vehicle they were in or another involved party. Passengers may also use their own UM/UIM coverage if the at-fault driver lacks adequate insurance. However, if a passenger’s actions contributed to the accident—such as distracting the driver—their compensation may be reduced under California’s pure comparative fault rule.

Statute of Limitations

In California, accident victims have:

• Two years from the date of the accident to file a personal injury lawsuit
• Three years to file for property damage claims

For claims involving government entities, victims must file a formal notice within six months of the accident. Missing these deadlines typically results in losing the right to seek compensation, underscoring the importance of acting promptly.

Procedures for Handling MVAs

When to report an accident:
Drivers are legally required to report an accident to the DMV within 10 days if the incident involves:

• Bodily injuries or fatalities
• Property damage exceeding $1,000

Failing to report the accident can result in penalties, including the suspension of your driver’s license.

Filing a report:
For accidents requiring a report, drivers must complete and submit DMV Form SR-1. This report includes details about the accident, involved parties, and insurance information. Law enforcement will also file an accident report for severe cases, providing additional documentation for insurance claims or legal proceedings.

How to access accident reports:
Accident reports filed by law enforcement can be requested from the agency that investigated the accident. Reports are typically available online, in person, or via mail for a small fee.

Types of Compensation Available & Limits

California law allows accident victims to pursue several types of compensation, including:

Economic damages: Cover measurable financial losses, such as medical expenses, lost wages, and property damage.

Non-economic damages: Address intangible losses like pain and suffering, emotional distress, and reduced quality of life.

Punitive damages: Rarely awarded but applicable in cases of extreme negligence or intentional misconduct to punish the at-fault party.

California prohibits caps on compensatory damages in personal injury and wrongful death cases, ensuring that victims can recover the full extent of their losses.

Medical Payments & Health Coverage

Medical expenses after an accident can be covered through:

• The at-fault driver’s liability insurance: Victims can file claims to recover medical costs, but this process may take time
• Health insurance: Can cover immediate medical expenses but may require reimbursement through settlement liens
•  MedPay coverage: Offers immediate financial assistance for out-of-pocket medical costs, regardless of fault
• UM/UIM coverage: Protects against uninsured or underinsured drivers who lack sufficient liability insurance

Unique Local Considerations

California’s diverse geography and high population density present unique challenges for drivers, contributing to an increased risk of accidents under various conditions. Traffic congestion in urban centers such as Los Angeles is notorious, with gridlocked highways and crowded city streets significantly raising the likelihood of rear-end collisions and multi-vehicle pileups. 

Additionally, California’s wildfire seasons pose a distinct hazard, as smoke can severely impair visibility, and road closures due to fire activity can disrupt travel and create dangerous detours. In mountainous regions, such as the Sierra Nevada and Big Bear, the winding roads, steep inclines, and icy conditions during the winter months amplify the risks of losing control or skidding, particularly for drivers unfamiliar with such terrain. These geographical and seasonal factors underscore the importance of cautious driving and preparation when navigating California’s roads.

Local Resources & Contacts

• California Department of Motor Vehicles (DMV): https://www.dmv.ca.gov/
• California Highway Patrol (CHP): https://www.chp.ca.gov/
• California Department of Insurance: https://www.insurance.ca.gov/

Conclusion

Understanding California’s motor vehicle accident rules and laws is crucial for staying informed and prepared in the event of an accident. From its at-fault insurance system to unique local challenges such as traffic congestion, wildfire risks, and mountainous terrain, California presents specific considerations for drivers and accident victims alike. Ensuring you meet insurance requirements, understand fault and negligence laws, and adhere to reporting and filing procedures can make navigating the aftermath of an accident smoother.

If you’ve been involved in a car accident, seeking guidance from a knowledgeable attorney can help you protect your rights and secure the compensation you deserve. Whether dealing with insurance claims or legal proceedings, being proactive and well-informed is your best defense. Stay safe, follow the rules, and drive responsibly on California’s diverse and often challenging roads.