California Car Accident Settlement Process and Timeline

Following a California car accident, drivers must file an accident report as well as a car accident claim. This begins the settlement process for your insurance claim. After an accident, it's common to wonder how long will it take to get the insurance payment, and how much will I get?

There are no easy answers for these questions. The auto accident settlement timeline varies for each car crash and insurance policy. There are things you can do to help the process along. Understanding how the car accident settlement process works in California can be a tremendous help.

California Car Accident Laws

Your actions immediately after an accident can have a profound effect on your accident settlement. The insurance company needs certain information with your accident claim. In California, drivers must report all accidents with injuries, fatalities, or property damage over $1,000.

Reporting Requirements

Drivers have ten days to report an accident to the DMV. The driver’s report is separate from any CHP report, police report, or report filed by your insurance company. The California DMV has an online site for accident reports. Failing to report an accident is a possible misdemeanor under California law.

Your insurance company also needs to know about the accident within a certain amount of time. The reporting period differs by company, but it’s usually within 30 days of the accident. You should review your insurance policy, since there may be other reporting requirements you need to follow after an accident.

Statute of Limitations

The statute of limitations is the amount of time an accident victim has to file a personal injury claim after an accident. California’s limitation statutes differ for accident claims depending on the type of claim.

• Personal injury cases: Two years from the date of the accident. If the injury does not appear until after that time, then it is two years from the date the victim could reasonably have discovered the harm. For instance, if you suffer a stroke and doctors trace it back to a blood clot caused by a car accident five years ago, then you have two years from the date doctors learned of your injury.
• Property damage claims: Three years from the date of the accident

If you’re not sure whether the statute of limitations has expired, contact a personal injury attorney. Missing the deadline can bar you from filing an insurance claim in your case.

California Car Insurance Laws

California drivers must carry minimum liability auto insurance. Drivers can add comprehensive or collision insurance as well, but liability insurance is required and covers individuals other than the driver in case of collision. California recently updated its minimum liability coverage:

• $30,000 personal injury
• $60,000 total injury per accident
• $15,000 total property damage

California insurance companies must offer Uninsured/Underinsured Motorist (UI/UIM) coverage. This coverage pays some of the victim’s damages if the other driver does not have liability insurance.

California is an at-fault insurance state. Drivers file claims with the other driver’s insurance company. The at-fault driver pays for the victim’s injuries and property damage. Insurance adjusters review the claim and documentation and make a determination of fault based on the information provided.

The Accident Settlement Process

When you file your insurance claim, the insurance company needs specific documents with the claim form. According to industry reports, the most common cause of claim delay or denial is improperly completed forms and inadequate documentation.

After a car accident, you should gather evidence to help support your claim. Your insurance claim should include:

• The other driver’s insurance information and contact information
• Your medical records and doctor’s report
• The police report or incident report number
• Proof of medical expenses such as bills and invoices
• Proof of lost wages, such as paycheck stubs

After you send in your claim form and documentation, the insurance companies make a determination of fault. California uses a pure comparative negligence standard. Under this rule, you can recover partial damages for your claim, even if you are partially responsible for your accident.

The insurance company makes an initial settlement offer based on the determination of fault. For instance, if they feel you and the other driver were equally responsible, they may say each driver’s insurance should pay for their own insured’s injuries. If they believe the other driver was at fault, they may offer you partial payment based on the evidence you provided.

When Should You Consider Getting an Attorney?

After an accident, you should receive fair compensation for your injuries and damages. Insurance companies typically offer a payout that covers the victim’s emergency medical care and little more. If your accident is a minor fender-bender that may be sufficient. If you have severe injuries, getting legal help to ensure you receive the settlement amount you deserve is an option to consider.

California Damages

In California, accident victims may request two kinds of damages in a car accident claim.

Economic damages, sometimes called “special damages,” are tangible losses that courts can calculate from bills and invoices. Economic damages include:

• Medical bills: These include doctor’s visits after the accident, medications, therapy, and surgery
• Lost wages and income: If you do not have paid leave, or exceed your leave time, you can receive lost pay. This can include lost promotions or lost opportunities while you were away from work
• Future medical costs and lost income: If your injuries require medical treatment later, or will prevent you from working, your settlement can include those potential costs

Non-economic damages, or general damages, refer to the harm done to the victim’s life by their injuries. These damages are less easily calculated, so courts use a multiplier method to determine the award. This equation takes the economic damage total and multiplies it by a number from one to five, depending on the severity of your injuries.

Non-economic damages include:

• Pain and suffering
• Emotional trauma
• Loss of consortium
• Loss of enjoyment

Victims cannot ask for punitive damages in an accident claim, but attorneys can request them in a personal injury lawsuit. Unlike some states, California does not have a cap on punitive damages. Courts will not impose excessive damages against a defendant.

A personal injury attorney begins a car accident case with a demand letter. The demand letter includes a statement of injuries, the total damages requested, and proof of the claim.

Settlement Negotiations

Once you have an attorney, the at-fault party’s attorney or insurance company deals with them, not with you. An experienced attorney helps ensure a fair settlement and moves the process along faster than if you try to handle things alone.

Part of the settlement negotiations involves the discovery process. During discovery, each side may request information from the other side. In a car accident lawsuit, your attorney gathers information about the other driver and uses that information when making a settlement offer.

If neither side can agree on a settlement, the final stage is a trial. A car accident attorney prefers to avoid litigation, since trials are expensive and add months or years to the case.

Get Legal Advice From a California Personal Injury Attorney

The best way to get a good settlement after a car accident is to get legal advice from an experienced California car accident lawyer. They can explain the legal process and ensure your case has all the evidence necessary to prove your claim.