Is California A No Fault State?

Whether you live in a state where your insurance is governed by a no-fault or at-fault regime can play a serious part in how you handle the aftermath of a car accident.

What’s the difference? No-fault law requires all drivers to carry personal injury protection insurance. This provides drivers with easy access to health insurance if they are injured in a car accident.

No-fault accident laws are more than a little contested. This is mostly because it is perceived as expensive and redundant – due to the fact that most drivers already have health insurance.

Regardless of whether you think they’re right or wrong, you still must abide by them if you live in a state that practices them. If you’ve been in a no-fault accident, you probably want to know more details and if your insurance rate will go up. Keep reading to learn what you need to know.

What is No Fault Accident?

In most states, when an accident occurs, someone takes the blame.

Unless two cars both run stop signs and collide or merge into a center lane from opposite sides and wreck, in most accidents, one driver is clearly at fault.

But in a no-fault state, that isn’t necessarily true.

In a no-fault state, a driver who is injured in an auto accident simply has to file a claim for compensation for their injuries. Once filed, the other driver’s insurance provider must pay the claim.

It doesn’t matter whether the injured driver is the victim in the accident or the cause. They can file for coverage regardless, without having to prove who caused the accident.

While this ensures that the claim gets paid, there is a catch; the injured driver cannot sue for additional damage.

Is California a No-Fault State?

Technically, no, California is not a no-fault state.

While an injured driver can still file a claim to the other driver’s insurance and that claim will have to be paid, it doesn’t end there. Drivers in California do still retain their right to sue for additional damages, according to Los Angeles car accident attorneys.

No-Fault vs At-Fault Insurance

The purpose of the no-fault system is to decrease the cost of auto insurance by eliminating small claims from the court system, according to the Insurance Information Institute.  Through this kind of insurance, each insurance company compensates its policyholder for minor injuries regardless of who was at fault for the accident.

Many states have revised laws, so this process is easier for innocent victims. This frequently allows the victim who was not at fault in the accident to be released from the responsibility of showing the other driver was at fault for the accident before they can receive compensation. This is referred to as personal injury protection in the no-fault insurance policy.

In an at-fault state, such as California, each insurance company pays for the damages sustained according to the degree of fault of each party. The motorist who caused the accident is responsible for the damages to whoever was injured. His or her insurance company will pay the injured victim but if the insured individual doesn’t agree with the amount of payout, he or she can file a lawsuit and seek uncompensated damages.

To help prove your case and to make sure you receive the compensation you deserve, it’s important to hire an experienced car accident attorney.

What Happens to My Insurance after an Auto Accident in California?

Practices vary from one insurer to another regarding reassessing a policyholder’s driving record. Generally, when a policyholder files an insurance claim above a specific limit after an at-fault accident, an insurer increases the premium by a certain percentage.

The severity of an accident and the resulting cost of insurance premiums may affect the rate of increase. A minor parking lot collision doesn’t have the same premium increase as a major accident.

After a few years, the Department of Motor Vehicles (DMV) may remove your car accident or traffic violation from your record. Consequently, you can buy a standard auto insurance policy at a lower premium.

In most cases, insurers initiate a premium increase only when you cause a car accident that results in damages or injuries to others.

Exceptions to the rule include:

• Your vehicle sustained damage in a hit-and-run accident
• You had legally parked your vehicle during the crash
• Your vehicle was struck in the rear by another car, but you did not sustain a moving traffic violation

How Is Fault Determined in California Car Accidents?

Establishing fault in an accident makes it easier to prove your case and hold the liable party accountable. In most crashes, at least one driver acted recklessly by violating the traffic law.

Examples of reckless behaviors include drunk driving, speeding, weaving in and out of traffic, or tailgating.

An insurer or attorney can use the following evidence to establish fault:

• Eyewitness statements
• Medical records
• Photos of the accident scene
• Police accident report
• Accident reconstruction
• Video footage from surveillance cameras

Minimum Auto Insurance Requirements in California

Most states, including California, require drivers to carry insurance coverage. The minimum insurance requirement provides financial protection if you’re at fault for an accident.

It is in a driver’s best interest to acquire higher insurance coverage than the state minimum. If you cause an accident, the injured victim may file a lawsuit to obtain damages that exceed your insurance coverage.

You should buy an insurance plan with sufficient coverage to protect the asset you will likely lose in a suit.

Here are the minimum insurance requirements according to the California Insurance Code §11580.1b:

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

If you obtain a liability insurance plan, the coverage compensates other people—third parties—for bodily injury or property damage.

Here are the types of acceptable insurance in California:

• A cash deposit of $35,000 with the DMV
• Auto liability insurance policy
• Surety bond worth $35,000 from a company license to operate in California
• A DMV-issued self-insurance certificate

Comparative Negligence in California

California is a pure comparative negligence state, applicable in personal injury cases. The rule allows the injured party to obtain compensation from the other party even if they are 99% at fault for the accident.

Under the pure comparative negligence rules, the person responsible for causing an accident pays for accident-related losses according to their percentage of fault.

What to Do if You’re Involved in an Accident

Because California isn’t a true no-fault state, you do have the option to sue if you’re involved in a no-fault accident that you feel the other driver caused.

To navigate complex driving laws and complicated insurance requirements, you need professional help. Contact us today to see how we can help you get the compensation that you deserve.

The Barnes Firm always urges drivers to exercise extreme caution on the roads, regardless of fault or no-fault laws. If you have already experienced an accident or injury due to a car accident in California, an experienced car accident attorney can help you get compensation for things like:

• Medical bills
• lost wages
• pain and suffering
• transportation costs
• rehabilitation
• and more

For more information on receiving compensation for a car accident injury, contact The Barnes Firm to for a free consultation with an experienced car accident attorney in Los Angeles, San Diego, or the Bay Area.

The Barnes Firm (800) 800-0000

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Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

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