Can You Sue Another Driver’s Insurance Company?
A car crash can change your entire life in a matter of seconds. It can leave you with stacks of medical bills, missing paycheck, and severe pain and suffering. You need money to repair your vehicle, cover your bills, and support your family. This raises an important question: Can you sue another driver’s insurance company after an accident?
Technically the answer is ‘no’ — but you can sue the at-fault driver and their insurance company has a legal obligation to indemnify per the terms of their policy. Here, our Oak land personal injury attorney explains the key things to know about holding another driver (and their insurance company) liable for an accident in California.
California is a Fault-Based Auto Accident State
California is an ‘at-fault’ car accident state. If you are involved in a crash with another motorist in the East Bay, you have a right to hold that driver (and their insurance company) accountable for your damages. For this reason, every serious car crash requires a comprehensive investigation by an experienced California auto accident lawyer. While fault is clear in some multi-vehicle collisions, it is disputed in many others
Know the Law: Comparative Negligence
Not all car accidents are the fault of a single party. California operates under a ‘comparative negligence’ legal standard. As explained in the Judicial Council of California Civil Jury Instructions (CACI No. 406), these claims are resolved by the court deciding how much liability each party has by “assigning percentages of responsibility.” Each party to a traffic collision will be held liable for their proportional share of the blame.
For example, imagine that you were injured in a two-car collision in Alameda County. In total, you sustained $15,000 in medical bills, lost wages, and pain and suffering. If the other driver is found liable for 100 percent of the accident, you can recover 100 percent of your damages ($15,000) from the at-fault party. However, if you are found liable for 20 percent of the fault for the accident, you would be held responsible for 20 percent ($3,000) of your own damages.
This means you would be able to recover 80 percent of your damages, or $12,000, from the other driver. This same analysis of comparative fault applies whether your damages are $15,000 or $15,000,000. In accidents where liability is disputed, you sue for 100 percent of your damages and a jury decides whether the defendant is 100 percent liable or whether there is comparative fault and percentages should be assigned.
You Do Not Sue the At-Fault Driver’s Insurance Company Directly
If another driver was at-fault for your accident, you have the right to hold them responsible for your damages. A lawsuit filed in relation to your crash will generally be filed against the at-fault party. In other words, you do not sue the other driver’s insurance company. That being said, the at-fault driver’s insurance company has a legal duty to indemnify and defend them in accordance with the terms of the insurance policy.
The reason that you typically cannot sue the other driver’s insurance company directly is that the insurer has no legal obligation to you. Instead, the insurer’s obligation is to their policyholder (the at-fault party). Of course, you are still going to be dealing with representatives from the opposing insurance company that is responsible for handling the claim. You should always work with big insurance providers through an experienced California car accident attorney.
Most Car Accident Claims are Not Resolved by a Lawsuit
Bringing a claim against another driver does not necessarily mean you have to file a lawsuit. In fact, only a small percentage of auto accident claims are resolved in court. Most auto accident claims are settled. With extensive experience representing injured victims, our East Bay car accident lawyers can help you initiate the claims process so that you can seek the full and fair financial support that you rightfully deserve.
California Car Accident Insurance Settlement Statistics
In the year 2024, California witnessed a wide range of car accident insurance settlements, illustrating the substantial disparities in how victims are compensated based on their injuries. For those suffering from minor injuries, such as whiplash or bruises, the average settlement amounted to a modest $7,439. In contrast, victims enduring severe injuries, including devastating spinal damage or traumatic brain injuries, found themselves navigating settlements that soared to an impressive average of $1.37 million.
In between, moderate injury claims—encompassing broken bones and concussions—averaged about $50,054. These numbers reflect not only the increasing intensity of injuries sustained in accidents but also the shifting dynamics of legal strategies employed in pursuing compensation. The overarching landscape of car accidents in California in 2024 revealed a perplexing situation: while the overall number of collisions had declined, the severity of injuries reported continued to rise.
According to detailed research compiled by Novian & Novian LLP, a prominent personal injury firm located in Los Angeles, the total traffic crash numbers might be decreasing, yet the alarming uptick in fatalities and serious injuries cannot be overlooked.
This contrasting trend highlights a critical need for skilled legal representation and astute insurance negotiations, as victims strive to ensure they receive fair compensation for their suffering and losses. Settlement amounts are influenced by a multitude of factors, creating a varied tapestry of financial outcomes for victims.
To illustrate: – Claims related to minor injuries typically averaged a settlement of $7,439, covering basic medical expenses and discomfort. Moderate injuries, which can lead to significant medical interventions and time off work, resulted in average payouts of $50,054. In stark contrast, those facing severe injuries saw their claims soar, averaging $1,373,155, reflecting the life-altering impact of such incidents.
These settlement figures arise from a combination of arbitration outcomes, pre-trial negotiations, and jury awards, with jury verdicts usually offering more substantial financial relief than settlements, particularly when significant pain and suffering or long-term disabilities are involved. Several critical elements come into play when determining the value of settlements:
Medical Costs – As healthcare expenses escalate, they often lead to higher settlement figures, capturing the full financial impact of the injuries.
Lost Wages – Compensation includes not only the costs of medical treatment but also the income lost due to the inability to work during recovery, compounding the financial burden on victims.
Pain and Suffering – Under California law, victims can claim non-economic damages, which may substantially enhance the final settlement amount by addressing the intangible toll of their injuries.
Comparative Fault – California operates under a pure comparative negligence system, allowing even drivers who are partially at fault to recover damages, albeit at a rate reduced based on their degree of fault in the accident.
In this evolving landscape of insurance claims, 2024 also saw insurers facing heightened scrutiny over their claim handling practices, leading many victims to seek legal counsel earlier in the process. This trend proved particularly significant in cases where liability was unclear or payouts were delayed, fostering a more structured approach to negotiations and, in some cases, leading to litigation.
From a demographic standpoint, California’s major urban centers—Los Angeles, San Diego, and the Bay Area—reported the highest volumes of claims, largely due to their dense populations and increasing traffic congestion. Conversely, rural areas experienced fewer claims; however, when accidents did occur, they often resulted in more severe injuries, primarily stemming from higher-speed collisions that are characteristic of less populated regions.
The California Office of Traffic Safety (OTS) remains vigilant in tracking crash data through the statewide SWITRS system. This effort provides valuable insights into regional trends, age-based injury rates, and the types of vehicles involved in accidents. Motorcycle and pedestrian incidents, in particular, frequently lead to higher settlements due to the vulnerable nature of those involved.
As we look towards the future, legal experts predict an ongoing rise in average settlement amounts, fueled by factors such as inflation, soaring medical costs, and the development of case law. In light of these trends, victims are strongly encouraged to meticulously document their injuries, seek prompt medical attention, and consult with knowledgeable attorneys to optimize their claims and enhance their likelihood of receiving just compensation for their experiences.
Frequently Asked Questions About California Car Accident Claims
What should I do immediately after a car accident?
Ensure everyone’s safety, call emergency services if needed, and move vehicles out of traffic if possible. Exchange information with the other driver, gather witness contact details, and document the accident scene with photos.
How do I prove the other driver is at fault?
Fault is usually determined by traffic rules violations, eyewitness testimony, and evidence from the accident scene. A police report can also help establish fault.
Should I accept the insurance company’s settlement offer?
It’s advisable to consult a personal injury lawyer before accepting any settlement offer. Initial offers may not cover all expenses, including long-term medical costs and non-economic damages like pain and suffering.
When should I report the crash to my insurance company?
Report the accident to your insurance company as soon as possible, but avoid giving extensive statements without consulting a lawyer.
What is the statute of limitations for filing a car accident claim in California?
You generally have two years from the date of the accident to file a personal injury claim in California.
Can I still file a claim if I was partially at fault for the accident?
Yes, California follows a comparative negligence rule, which means you can still recover damages even if you were partially at fault, but your compensation may be reduced by your percentage of fault.
What types of damages can I recover in a car accident claim?
You can recover economic damages (medical expenses, lost wages) and non-economic damages (pain and suffering, emotional distress).
Do I need a lawyer for my car accident claim?
While not required, having a lawyer can help you navigate the legal process, gather evidence, and negotiate with insurance companies to ensure you receive fair compensation.
What if the other driver left the scene of the accident?
If the other driver left the scene (a hit-and-run), you should report the accident to the police and your insurance company. Uninsured motorist coverage can help cover your damages if the other driver is not found.
How long does it take to settle a car accident claim?
The time to settle a claim varies. Simple cases may settle in a few months, while more complex cases can take longer, especially if they go to court.
Schedule a Free Consultation with Our Car Accident Lawyer in East Bay
At Bracamontes & Vlasak, our East Bay car accident attorneys are skilled, results-focused advocates for injured victims and their loved ones. We know how to hold big insurance carriers accountable for paying claims. Give us a call now at 415-835-6777 or contact us directly online for a free, no-obligation review of your case. We represent auto accident victims throughout the East Bay, including in Oakland. Alameda, San Leandro, Hayward, Piedmont, Berkeley, Richmond, and Union City.
