California's No-Fault Auto Insurance: What You Need To Know

California is an at-fault or tort state, meaning the driver responsible for a car accident is liable for paying for other people's injuries and property damage. In no-fault states, drivers make claims through their insurance policies, regardless of who is at fault. California is one of 38 states that does not subscribe to a no-fault policy, and drivers must be able to prove liability to receive compensation.

California is an at-fault state

California is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident. In California, injured victims must file car accident claims with the at-fault driver's insurance company. This means they must identify the driver who caused the accident and prove this driver's fault during the insurance process.

In a no-fault state, the process is different. All drivers involved in the wreck will seek financial benefits from their own insurance providers, regardless of who was at fault for the collision. It is not necessary for these drivers to prove someone else’s fault or negligence to qualify for insurance coverage.

California is one of 38 states that does not subscribe to a no-fault policy. This means whoever is responsible for the accident will be liable to pay for the damages. While every state is a little different, it’s important to understand what this means for you as a driver and how it may impact you in the event of a collision.

California uses pure comparative negligence for car accidents. This means that responsibility can be shared when determining who is at fault. So, you may be entitled to receive compensation for injuries and damages even if you are partially at fault for a car accident. For example, if a jury determines that the plaintiff is 80% at fault and the defendant is 20% at fault, then the defendant only pays 20% of the damages amount to the plaintiff.

The more evidence you have regarding the other party’s fault, the more likely you are to collect a higher amount of compensation. Some forms of evidence you should make sure to collect include photographs and videos of the accident scene, copies of medical and police reports, driver and vehicle information for all involved vehicles, and receipts for medical and property costs.

No-fault states require personal injury protection (PIP) insurance

California is not a no-fault state. It is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident.

No-fault states require drivers to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In California, PIP is not required.

Personal injury protection (PIP) insurance covers medical expenses and lost wages for the policyholder and their passengers if they are injured in an accident, regardless of who is at fault. PIP is mandatory in some states and optional or not offered in others.

In a no-fault state, if a policyholder is injured in a car crash, their policy pays for their medical care, regardless of who caused the accident. Policyholders with PIP coverage can receive benefits even if the other driver doesn't have insurance.

PIP coverage also often provides payments for lost income, childcare, and funeral expenses related to the accident.

California drivers retain the right to sue for additional damages

California is an "at-fault" or "tort" state, meaning the driver at fault for a car accident is responsible for paying for other people's injuries and property damage. Unlike in no-fault states, California drivers retain the right to sue for additional damages.

In a no-fault state, all drivers involved in a car accident seek financial benefits from their own insurance providers, regardless of who caused the collision. This means that drivers do not have to prove fault or negligence to qualify for insurance coverage. However, they cannot sue for additional damage.

In California, injured victims must file car accident claims with the at-fault driver's insurance company. This means identifying the driver who caused the accident and proving their fault. This can make it more difficult to receive insurance benefits, and may lead to lengthy and expensive legal battles.

California uses a pure comparative negligence system, which means drivers can collect damages proportionate to their fault in causing the crash. For example, if a driver is found to be 80% at fault, they can still collect 20% of damages from the other driver.

California requires all drivers to carry liability insurance, which pays for others' expenses after a driver causes an accident, such as damage to other vehicles and their medical expenses. The minimum insurance requirements in California are $15,000 per person and $30,000 per accident in bodily injury liability insurance, and $5,000 in property damage insurance.

California uses a pure comparative negligence system

California is not a no-fault state for auto insurance. It is an "at-fault" or "tort" state, meaning the person at fault for a car accident is responsible for paying for other people's injuries and property damage.

The pure comparative negligence system in California is outlined in the California Civil Jury Instructions (CACI) 405 and California Civil Code Section 1714. The precedent for this system was set in the 1975 case Li v. Yellow Cab Co., which involved a traffic accident where both the plaintiff and defendant drove negligently. The California Supreme Court decided in favour of comparative negligence, allowing the plaintiff to recover damages even though they were partly responsible for the accident.

The pure comparative negligence system in California means that a plaintiff can receive a partial personal injury award if the defendant is at least 1% at fault. The plaintiff's award is reduced by their percentage of fault. For example, if a plaintiff is found to be 20% at fault for a car accident, they would receive $80,000 of a $100,000 verdict.

California's pure comparative negligence system is different from modified comparative negligence systems, where a plaintiff may not be more than 49-51% responsible, or else they lose any right to recovery.

California has minimum insurance requirements

California is an "at-fault" state, which means that the person responsible for an accident will be liable to pay for the damages. The state has minimum insurance requirements that drivers must adhere to. Financial responsibility (commonly known as insurance) is required for all vehicles that are operated or parked on California roads. This means that drivers must carry evidence of financial responsibility in their vehicle at all times and provide it when requested by law enforcement, when renewing their vehicle registration, or when their vehicle is involved in a traffic collision.

The minimum liability insurance requirements for private passenger vehicles in California are as follows:

• $15,000 for injury/death to one person.
• $30,000 for injury/death to more than one person.
• $5,000 for damage to property.

It is important to note that these minimum requirements will increase effective January 1, 2025, to the following amounts:

• $30,000 for injury/death to one person.
• $60,000 for injury/death to more than one person.
• $15,000 for damage to property.

In addition to the minimum liability insurance requirements, California also requires insurers to offer uninsured/underinsured motorist (UM/UIM) bodily injury coverage. This coverage can be rejected if the driver does not want it. The minimum limits for UM/UIM bodily injury coverage are:

• $15,000 per person.
• $30,000 per accident.

While these are the minimum insurance requirements in California, it is recommended to consider higher coverage amounts to better protect oneself financially in the event of an accident.

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