Understanding California's Liability Insurance: What You Need to Know
In California, having the right insurance is more than just a legal requirement—it’s essential for your financial protection. As a reputable personal injury law firm, Tofer & Associates is here to help you navigate the complexities of liability insurance and ensure you are adequately covered.
What is Liability Insurance in California?
Liability insurance is a mandatory coverage for all drivers in California. It protects you in case you’re responsible for causing an accident by covering the other party’s medical bills, lost wages, and other damages related to their injuries. However, it’s important to note that liability insurance does not cover your own injuries or property damage.
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California requires all drivers to carry a minimum of “15/30/5” coverage:
- $15,000 for injury or death to one person
- $30,000 for injury or death to more than one person
- $5,000 for property damage
These minimums might seem sufficient, but accidents can quickly lead to costs that exceed these limits. To better protect yourself, consider opting for higher coverage limits or additional coverage types like uninsured motorist coverage or comprehensive coverage.
What Does Liability Insurance Cover?
In California, liability insurance is designed to cover two key areas:
- Bodily Injury Liability: This covers the medical expenses, lost wages, and other related costs for individuals injured in an accident where you are at fault.
- Property Damage Liability: This pays for damage you cause to someone else’s property, such as their vehicle, fence, or other personal property.
It’s crucial to understand that liability insurance only covers the other party’s expenses. It does not cover your injuries or damage to your own property. However, it may cover your legal expenses if the other driver sues you after an accident.
What is Not Covered by Liability Insurance?
While liability insurance is vital, it’s also important to recognize what it does not cover:
- Your Injuries or Passenger Injuries: Liability insurance does not cover medical expenses for you or your passengers. To protect yourself, consider adding Med Pay or personal health insurance to your coverage.
- Damages Beyond Policy Limits: If the cost of an accident exceeds your policy’s coverage limits, you are personally responsible for the remaining expenses. This could include lawsuits for additional damages.
- Vehicle or Property Damage: Liability insurance doesn’t cover damages to your own vehicle or property. For these, you’ll need collision or comprehensive coverage.
For instance, comprehensive coverage can protect you against non-collision-related incidents like theft or vandalism, which is particularly relevant in California, where car theft rates are high.
Why You May Need More Than the Minimum Coverage
While California’s minimum liability insurance meets legal requirements, it may not be enough in the event of a serious accident. If you own valuable assets like a home or have significant savings, you should consider higher limits or even an umbrella policy for additional protection. This is especially crucial given that 16.6% of California drivers are uninsured.
For those with significant assets, Tofer & Associates recommends considering these policy limits:
- 50/100/50: Suitable for those with few assets and a limited budget.
- 100/300/100: Ideal for middle-income earners with moderate savings.
- 250/500/100: Best for homeowners or those with substantial assets.
Additionally, a personal umbrella insurance policy can provide an extra layer of protection by extending your coverage by $1 million or more.
How to Make a Claim
If you’re involved in an accident, California law requires you to report it using DMV Form SR1 within 10 days if there were injuries, fatalities, or property damage exceeding $1,000. Additionally, you must notify your insurance company as soon as possible. The insurer will assign a claims adjuster to investigate the accident, but remember, their goal is to minimize costs for the insurance company—not necessarily to get you the best settlement.
During the investigation, the claims adjuster may:
- Take your statement and speak with the other driver
- Review police reports and speak to witnesses
- Inspect the damaged vehicles and accident scene
- Review medical records of those claiming injuries
Understanding your rights and obligations can significantly impact the outcome of your claim. Tofer & Associates is here to help ensure that your claim is handled properly and that you receive the compensation you deserve.
What if You Were Partially at Fault?
California follows a “shared fault” or “comparative negligence” law, which means that more than one party can be held responsible for an accident. Even if you are partially at fault, you may still be entitled to recover some of your damages, such as medical bills, lost wages, and vehicle repair costs.
However, the amount you can recover will be reduced by your percentage of fault. For example, if you are found to be 30% at fault, you would only be entitled to recover 70% of your damages.
Having an experienced California personal injury lawyer from Tofer & Associates can help ensure that you are assigned the least amount of blame possible, maximizing your recovery.
When to Contact a Lawyer
If you’re facing delays, denials, or lowball offers from your insurance company, it might be time to consult with a personal injury lawyer. At Tofer & Associates, our attorneys are dedicated to protecting your interests and maximizing your settlement. We are here to guide you through every step, from filing your claim to, if necessary, representing you in court.
Insurance adjusters work for the insurance company, and their primary goal is to minimize payouts. They might delay or deny your claim, hoping you’ll settle for less than you deserve. Hiring your own lawyer ensures that someone is looking out for your interests.
Our experienced team at Tofer & Associates will:
- Independently investigate the accident
- Fight for the compensation you deserve
- Ensure that any settlement protects your rights and covers your losses
If your case goes to trial, our attorneys will present your story to the jury in the most compelling way possible, aiming for the best possible outcome.
Additional Resources
For more information on how we can help you, explore our services:
If you have questions about your liability insurance or need legal assistance following an accident, don’t hesitate to reach out to us at Tofer & Associates. Protect yourself and your loved ones with the right coverage and expert legal support. Call us today at (800) 291-9000.
*Disclaimer: This blog post is for informational purposes only and should not be construed as legal advice. Please consult with a qualified attorney to discuss your specific case.
ALEX TOFER
Alex Tofer, the founder and managing partner of Tofer & Associates since 2001, specializes in personal injury cases but also adeptly represents clients in premises liability lawsuits and lemon law matters throughout California. For inquiries regarding this article or legal assistance, please feel free to reach out to us.
