In most California cases, you would file a lawsuit against the at-fault driver directly, not their insurance company. In some situations, it may be possible to sue the insurance company, especially if it’s your own insurer and they’re refusing to honor a valid claim. Understanding who to hold accountable depends on the circumstances of the accident, the insurance coverage involved, and whether fault is disputed.
What Can My Car Accident Claim Include?
A car accident claim can include a wide range of expenses, including economic damages like medical bills, and non economic damages like pain and suffering. The amount recovered depends on both the insurance policies and the severity of the incident. At its core, the goal of a personal injury claim is to recover compensation for both the financial and emotional impact of your crash, not just vehicle repairs. In California, many car accident claims can cover:
- Medical expenses: including hospital stays, surgeries, physical therapy, prescription medications, and ongoing treatment.
- Lost wages – income missed while recovering, as well as lost earning capacity if the injury affects future work ability.
- Property damage – repairs or replacement of the vehicle and any damaged belongings inside the car.
- Pain and suffering – compensation for physical pain, emotional distress, trauma, or diminished quality of life.
- Out-of-pocket expenses – such as transportation to medical appointments, medical equipment, or in-home care.
Understanding the full value of a car accident claim isn’t always straightforward, especially when dealing with insurance adjusters who may offer a low settlement. A personal injury attorney can help assess the real impact of the accident and guide you to receive compensation available under California law.
Suing the At-Fault Driver’s Insurance Company
While most accident claims are resolved through negotiation, direct lawsuits against an at-fault driver’s insurance company may be possible when “bad faith” insurance practices occur, including situations where the insurer ignores clear liability, refuses to settle within policy limits, or stalls without justification. In California, insurance companies are legally obligated to handle third-party claims fairly and promptly under the Unfair Claims Practices Act. When they fail to do so, a bad faith claim may be added alongside a personal injury lawsuit.
However, even in lawsuits, the at-fault driver, not their insurer, is usually named as the defendant. The insurance company participates behind the scenes, funding the legal defense and paying damages up to the policy limits. If those limits are too low to cover the full cost of injuries or losses, the injured party can pursue the driver personally for the remaining balance.
Understanding when a claim crosses the line from simple denial to bad faith is critical. An attorney can help determine whether the insurer’s actions justify direct legal action.
Can You Sue Someone For Damaging Your Car?
Yes, it is possible for you to sue someone for damaging a vehicle if they were responsible for the accident. In most cases, car damage claims are handled through insurance; either the at-fault driver’s policy or, in some cases, the injured party’s own coverage. But when insurance isn’t available, doesn’t fully cover the damage, or liability is disputed, a lawsuit can be filed directly against the driver.
In California, the claim may include the cost of repairs, rental car expenses, loss of use, and even diminished vehicle value after repairs. However, like injury claims, property damage lawsuits can be subject to a two-year statute of limitations, starting from the date of the incident. Filing a claim promptly, preserving repair estimates and photos, and seeking legal guidance can strengthen the case and improve the chances of recovering full compensation
Suing Your Own Insurance Company
In some situations, you may need to sue your own insurance company, especially when the company fails to honor the terms of the policy. For example, say you’re the victim of a hit-and-run. If your insurance policy covers hit-and-run accidents, the company has a legal obligation to adhere to the policy. A refusal to do so may give you a legal right to file a lawsuit.
California law requires insurance companies to act in good faith and deal fairly with policyholders. When an insurer breaches that duty by ignoring evidence, making lowball offers, or dragging out the process, it opens the door to legal action. A successful claim against the insurance company may result not only in the amount originally owed, but also in additional damages for emotional distress, attorney’s fees, or punitive damages.
How a Car Accident Lawyer Can Help
During the car accident claim process, a lawyer can help negotiate with insurance companies, gather documents, or even file a lawsuit.
A powerhouse law firm like Lawyers for Justice, PC is equipped to handle the full scope of your claim. We are able to gather medical records and police reports, and communicate directly with insurance adjusters to avoid common tactics meant to reduce payouts. In cases where an insurance company acts in bad faith or fails to offer a fair settlement, a lawyer can escalate the matter to court and represent the injured party in a lawsuit.
Lawyers for Justice, PC offers free consultations and works on a contingency fee basis, meaning there are no upfront costs. The lawyer only gets paid if the case is successful, making legal support more accessible to injured drivers and passengers.
If you or someone you know has been in a car accident, call (818) JUSTICE for a free consultation.
Handling the Car Accident Claims Process – FAQ
Should I Sue After a Car Accident in California? Filing a lawsuit after a car accident in California may be appropriate if the at-fault driver’s insurance refuses to offer a fair settlement, denies liability, or if the injuries and damages are substantial. Before suing, it’s often beneficial to consult with a car accident attorney to explore all legal options and determine whether a lawsuit is necessary to recover full compensation.
Can someone be sued for a minor car accident? Yes, someone can be sued for a minor car accident so long as the accident caused issues such as vehicle repair costs, medical bills, or lost wages. Even if injuries or damages seem minimal, the at-fault party can still be held legally and financially responsible.
How to Deal With the At-Fault Driver’s Insurance Company? Start by gathering all relevant evidence, including photos, medical records, and repair estimates. Before entering negotiations, it’s often recommended to send a formal demand letter outlining the damages, liability, and the amount being requested. A formal demand letter can set the tone for settlement discussions and can help protect your rights if the case escalates. If the process seems overwhelming, remember a car accident attorney can take care of the whole process for you.
Can I Sue If the Other Driver Doesn’t Have Insurance? Yes, it is possible to sue an uninsured driver, but recovering compensation can be challenging if the driver has limited assets. In many cases, it’s more effective to file a claim through uninsured motorist coverage, if included in the policy, rather than pursuing a lawsuit with uncertain outcomes.
What is a Bad-Faith Insurance Claim? A bad faith insurance claim arises when an insurance company denies or delays a legitimate claim. Bad faith claims happen when insurers fail to properly investigate, ignore key evidence, or refuse to negotiate in good faith. Policyholders have the right to decide whether to take legal action if they believe their insurer is acting in bad faith. In California, suing for bad faith can potentially lead to compensation beyond the original policy limits, including punitive damages.
