No, California is not a no-fault state. This is because it allows people who have been injured in a car accident to seek compensation from the at-fault party’s insurance company. Living in a state with a no-fault or at-fault system can significantly impact what you do after a car accident. States with a no-fault law require each driver to rely on their own insurance coverage, regardless of who caused the accident, and this can limit your ability to sue or seek compensation.
At Burg & Brock, we can help you pursue compensation from the at-fault driver. Our legal team has over 30 years of combined experience in helping accident victims protect their rights and navigate the process with ease. Contact us today for a free case evaluation.
This article covers what a no-fault state entails, the process of filing a claim in California, and the pros and cons of a fault-based state.
In most states, whenever an accident occurs, be it a car accident, a motorcycle accident, or any other form of collision, a party is always to blame. This party bears the responsibility of covering the damages and consequences arising from the accident. However, a no-fault state is a place where, after an accident, each driver uses their own insurance to pay for basic costs like medical expenses, irrespective of who caused the accident.
This means proving the o the other driver was at fault before you can receive assistance. This is known as a no-fault insurance policy, and it often includes personal injury protection (PIP), which helps cover medical bills, lost income, and other expenses. These states, often require drivers to carry this type of insurance coverage, and lawsuits are usually rare except in cases of severe injuries.
However, it is important to understand that California follows a fault-based or “tort” system, which means the driver responsible for causing the accident must fully pay for the damages. In a car accident in California, the main aim is establishing fault, which means determining who is legally responsible for paying for bodily injury, property damage, and other losses.
As mentioned in the earlier section, a no-fault state is a system where drivers rely on their own insurance after an accident, instead of trying to prove fault so that the other driver’s insurance company can cover their losses. In contrast, a fault-based state is a place where the individual who caused the accident is legally responsible for paying for damages.
In this system, the at-fault driver must carry liability insurance as part of their auto insurance. If a car crash occurs, the injured victim can file a claim with the at-fault driver's insurance company. Below is a table that fully differentiates a no-fault state from an at-fault state.
| No-Fault State | At-Fault State (California) |
|---|---|
| Drivers use their own insurance after a car accident, no matter who caused it | The at-fault driver (the one who caused the accident) is responsible for paying for damages |
| Uses a no-fault insurance system that focuses on quick payouts | Uses a fault-based system that focuses on who is to blame |
| Usually requires personal injury protection (PIP) to cover medical expenses and lost income | Requires liability insurance to cover bodily injury and property damage to others |
| No need for immediate fault determination for basic claims | Requires establishing fault before full payment is made |
| The claims process is faster and less stressful for small claims | The claims process can take longer due to investigations and disputes |
| Drivers typically deal with their own insurance company first | Injured parties deal with the other driver’s insurance company |
| Limits lawsuits unless there are severe injuries or high costs | Allows lawsuits for pain and suffering and other damages |
| Helps reduce arguments between drivers over small accidents | Often leads to disputes over who is at fault |
| Focuses on quick payment of medical bills and basic losses | Focuses on full recovery of all losses, including long-term damages |
| Insurance premiums may be more predictable | Insurance premiums may change based on fault history |
| Less emphasis on proving who is right or wrong early on | Strong emphasis on proving who is right or wrong |
| May not fully cover all damages beyond basic costs | Allows victims to seek fair compensation for all losses |
| Common in some U.S. states but not everywhere | Used in states like California and many others |
Establishing fault is one of the most critical steps when filing a claim. Insurance companies, lawyers, and sometimes courts examine the details of the accident to decide who the liable party is. There are several types of evidence used to determine fault. One of such pieces of evidence is a police report, which is usually reviewed first. It includes the police officer's opinion of who broke the rules and what actually caused the accident.
Photos and videos from the accident scene are also important to show the damage that came as a result of the crash, as well as what happened. Witness statements can also help explain how the accident occurred from a neutral point of view. Additionally, insurance adjusters can look at vehicle damage, road conditions, medical records, accident reconstruction, video footage from surveillance cameras, and traffic laws to decide who is at fault for the accident.
California also operates under a rule called pure comparative negligence. This means that more than one person can be responsible for a car accident, and hence will share fault. Each driver is given a percentage of responsibility based on their actions. For example, one driver might be 70% at fault while the other is 30% at fault. If you are partly responsible, you can still recover money, but your compensation will be reduced by your percentage of fault.
For instance, if your total damages are worth $10,000 and you are found to be 20% at fault, you can still recover $8,000. This rule allows injured people to still seek compensation, even if they made a mistake and contributed to the accident.
The California Insurance Code §11580.1b requires drivers to have liability insurance with these minimum limits:
This is often called the 15/30/5 coverage. This type of insurance is designed to pay for the other person's losses if you are the at-fault driver. However, it does not cover your own car or medical costs, which is why it is considered basic protection. California also allows other ways to prove financial responsibility instead of a regular auto insurance policy. This includes:
However, most people choose a standard insurance policy because it is the easiest and most practical option. The amounts listed in the law are not what you pay exactly; they only show the minimum coverage your insurance company must provide. The actual price of any car insurance depends on certain factors such as your driving record, age, location, and type of car. On average, minimum liability insurance in California can cost about $40 to $80 per month, which is approximately $480 to $960 per year.
This basic insurance coverage meets the legal minimum requirement, but it doesn't cover your losses, only the injured party's. If you decide to choose higher liability coverage, which many people do for better protection, the price usually rises to around $100 to $200 per month (around $1,300 to $2,400 per year). You can also add extra protections to your insurance policy. For instance, uninsured motorist coverage protects you if the other driver does not have insurance and can cost about $50 to $150 per month.
This is usually a cheap add-on, but it can prove useful in serious auto accidents. You can also add collision coverage, which covers damage done to your own vehicle and can cost around $50 to $150 per month, depending on the value of your car. This helps you replace or repair your vehicle after a car crash, irrespective of who was at fault. Another good option is a comprehensive coverage, which covers circumstances such as theft, fire, or natural damage.
This usually costs around $30 to $100 per month. Lastly, medical payments coverage, sometimes referred to as Medipay, is one of the cheapest options. It usually costs about $5 to $20 per month and helps cover small medical bills immediately after an accident. The more insurance coverage you include, the higher your monthly costs.
In a fault-based system like California, the person who caused the accident is responsible for covering damages. Hence, after an accident, you’ll have to deal with the other driver’s insurance company to recover your losses. Filing a claim usually follows a structured process:
Your health should always come first. The first thing to do after an accident is to check yourself and others to see if anyone is hurt. If there are injuries, call emergency services immediately. No matter how small or minor the accident may look, it is still important to make sure that everyone is okay. Seeking immediate medical attention is also critical because some conditions, such as internal injuries or whiplash, may not show immediate symptoms.
The next step is to report the accident to the police, especially if there is damage or injury. The police will arrive at the scene and create a report of the details of the accident. This report can help support your insurance claim down the road because it may include important details that can prove useful when figuring out who may be at fault.
Try to collect as much information as you can at the accident scene. Get the names, phone numbers, and insurance details of the other driver. You can also take clear pictures of the cars, the damage, the road, and anything else that shows how the accident happened. Also, ask for the names and contact information of eyewitnesses because their statements can support your version of events and help with fault determination.
Even if you plan to file a claim with the at-fault driver’s insurance company, you are still expected to inform your own insurance about the accident. They’ll usually guide you on what to do next and help protect your interests.
The next step is to submit a third-party claim with the at-fault driver’s insurance company. You’ll need to provide certain documents such as the accident report, evidence collected, medical records and bills, and repair estimates. After you file the claim, the insurance company will begin an investigation. They’ll review all the evidence, talk to drivers and witnesses, and examine the police report. They do all this to find out what happened and decide who may have caused the accident.
Once fault is decided, the insurance company will take a look at all your losses. This includes medical treatment, car repair costs, and sometimes other damages like pain and suffering. They may request documents such as repair bills, hospital records, and receipts to confirm your costs.
After reviewing the necessary information, the insurance company will make a settlement offer. This is the amount they are willing to pay. It is important to review this offer carefully because it may not always cover all your losses. Take your time to understand what is included before making a decision.
In situations where the offer is too low, you can negotiate for a better amount by providing more evidence that explains why you deserve higher compensation. A personal injury lawyer is often the ideal person to handle the negotiation process.
If you and the insurance company cannot agree on a specific amount, you can decide to file a lawsuit. In court, both sides will present their evidence, and a judge or jury will decide the outcome. This step is usually the last option, but it can help you recover the full amount you deserve.
One major benefit of the California fault-based system is that it allows injured people to recover compensation. Unlike a no-fault state, this system makes it possible for injured victims who are not at fault to file a claim and seek payment for their losses. Another advantage is fairness. The system focuses on establishing fault, which means the person who made the mistake is held accountable.
This can encourage drivers to be more careful because they know they will be financially responsible if they cause an accident. It also gives victims the right to take legal action if the insurance company does not offer enough compensation. However, a fault-based system also has disadvantages. One of such problems is that the claims process can take time.
Before fair compensation is awarded, the insurance company has to carry out its own investigations, and most times these companies can be unwilling to cooperate. When this happens, the injured victim may choose to file a lawsuit, which can further elongate the process. Another downside is that if the at-fault driver does not have enough insurance coverage, it can be difficult to recover all your losses.
After an auto accident in California, navigating the legal process of an insurance claim can be daunting. From dealing with medical treatment and hospital bills to negotiating with insurance adjusters, the process can feel overwhelming, especially when you’re trying to recover physically and emotionally. Having an understanding of how a fault-based system works can put you in a stronger position to protect your rights.
Burg & Brock offers free consultations to help you understand your rights under California and the steps to take to protect them. Our team of experienced personal injury attorneys can help guide you through the complex process of filing a claim, negotiating with insurance companies, and, when needed, representing you in court.
Below are common questions about the California fault-based system and their provided answers.
No, California is not a no-fault state. It uses a fault-based system, also called an at-fault state. This means the driver who caused the accident is responsible for paying for the damages. After a car accident, the injured person usually files a claim with the other driver’s insurance company to recover costs.
No, you cannot buy a true no-fault insurance policy in California. The state does not offer or support personal injury protection (PIP) like a no-fault insurance state. However, you can add other types of insurance coverage, such as medical payments coverage or uninsured motorist coverage, to help with medical expenses after a car crash.
Yes, you can file a claim on your own without a car accident lawyer. Many people handle simple California car accident claims directly with the insurance company. However, if the accident involves serious injuries, disputes about fault, or low settlement offers, getting legal help can improve your chances of getting fair compensation.
Yes, you can still get compensation even if you were partly at fault. California follows a rule called pure comparative negligence. This means your compensation will be reduced based on your share of the blame. For example, if you were 30% responsible for the accident, you can still recover 70% of your total damages.
The amount of compensation you can receive depends on your losses. This may include medical bills, lost income, property damage, and pain and suffering. The final amount also depends on how much fault you share, the strength of your evidence, and the limits of the insurance policy. In serious cases, people may work with a personal injury attorney to help them secure fair compensation.
Legal Disclaimer: The information provided in this blog is for general informational and educational purposes only and should not be construed as legal advice. Reading this content does not create an attorney-client relationship between you and Burg & Brock or any of its attorneys.
Every accident and legal situation is unique, and the outcome of any claim depends on the specific facts and applicable laws.
Cameron Brock is a recognized personal injury lawyer in Los Angeles with extensive experience and success representing individuals and families in catastrophic personal injury and wrongful death cases.
Cameron’s proven track record of helping those who have been harmed by wrongful conduct, violations of safety rules, and defective products has focused on claims involving automotive product defect, tire product defect, commercial truck accidents, trash truck accidents, airplane and helicopter crashes, train disaster, government liability for dangerous condition of public property, and general negligence.
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