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Car Accident in California: Dealing With Insurers the Right Way

Mar 5, 2022

How to Deal With Insurance After a Car Accident in California

Dealing with a car accident in California can be overwhelming, especially as medical bills pile up. Fortunately, you can seek compensation for the damages if the crash results from another party’s negligence. However, even if you have every right, the other party’s insurer will try to settle quickly, avoid paying, or reduce your settlement to protect their resources.

If you have been hurt in an accident caused by someone else’s wrongful actions, knowing your rights and taking the right steps is crucial to securing proper compensation. Here’s everything you should know when dealing with the insurance company.

Who Pays for Medical Treatment After a Car Accident in California?

California follows an “at-fault” system for car accidents. This means the driver responsible for the collision must cover the victim’s injuries and losses. At-fault drivers (and their insurance providers) are generally held accountable for expenses, such as:

  • Emergency room visits, ambulance fees, and medical bills
  • Rehabilitation and future medical costs
  • Prescription medications

However, until liability is confirmed, you are initially responsible for paying your medical bills, including out-of-pocket expenses like co-payments, follow-ups, and other treatments. This process can add stress to an already challenging situation.

Paying Medical Bills While Waiting for a Settlement

Waiting for compensation after a car accident can be frustrating, especially when medical bills keep piling up while you wait. The truth is, determining fault and securing a fair settlement often takes time, sometimes weeks, months, or even longer.

It’s a frustrating reality, but it’s important to reach what doctors call Maximum Medical Improvement (MMI) before settling. Why? Because settling too early could mean walking away with far less than you truly need to cover long-term care, rehabilitation, or future complications.

In the meantime, you don’t have to face the financial burden alone. Here are a few options that may help ease the pressure:

  • Health Insurance: If you’re covered, your policy can help cover immediate medical expenses.
  • Medicare or Medicaid: Government assistance may be available if you meet the qualifications.
  • Auto Insurance: Some policies include medical payment coverage, so check your benefits for help with accident-related costs.
  • Medical Liens or Payment Plans: Certain healthcare providers may agree to delay payment until your injury claim is resolved.

Whatever you do, don’t ignore your medical bills. They won’t go away, and unpaid balances can hurt your credit or lead to collections. A seasoned California car accident attorney can help you explore all available resources and connect you with providers willing to work with you while your case is pending. With the right support, you can focus on recovery, not just survival.

Understanding the Insurance Claims Process After a California Car Accident

Securing compensation through an insurance claim is rarely a quick process. Determining fault, assessing damages, and negotiating with insurers can take months or even years.

Understanding the steps involved in the claims process is crucial, especially for those dealing with serious injuries. It helps protect your rights, avoid costly errors, and pursue the compensation you deserve. Below, we break down the key stages of a typical insurance claim.

Reporting the Accident

The claims process begins with reporting the accident to your insurance company and, if applicable, the at-fault party’s insurer. During this step, you’ll need to provide details such as:

  • The date, time, and location of the accident
  • The parties involved
  • The extent of the damage or injuries
  • A police report number (if available)

Timely and accurate reporting is essential for keeping your claim on track.

Insurance Investigation

Once your claim is filed, an insurance adjuster will be assigned to investigate. Their responsibilities may include:

  • Reviewing the police report
  • Inspecting vehicle damage
  • Requesting medical records
  • Interviewing witnesses or parties involved

Medical Treatment and Documentation

Continuing medical treatment and keeping thorough records are crucial if you’ve sustained injuries. Without records or consistent medical therapies, the insurance company may argue that you lack evidence to show the severity and impact of the crash, or your injuries aren’t as severe as you claim they are. As a result, this can reduce your settlement or completely revoke your right to compensation.

Moreover, documentation plays a significant role in determining the value of your claim. Be sure to save:

  • Medical bills
  • Doctor’s notes
  • Prescription records
  • Proof of lost wages due to missed work

This evidence helps establish the true financial and physical impact of the accident.

Determining Fault and Liability

Insurance companies determine fault based on the evidence gathered. They often accept liability if proof shows their client is at fault for the crash.

However, in California, fault can be shared under comparative negligence, meaning your compensation could be reduced if you’re partially at fault.

For instance, if the court finds you 40% at fault for the crash, you can receive a 60% payout. Similarly, the other driver can file a claim for 40% compensation. This is why it is crucial to act promptly after the accident and seek legal help, especially if you are partially at fault.

Settlement Offer

After reviewing the evidence, the insurer may present a settlement offer. However, be cautious; initial offers are often lower than what you’re truly owed. These offers may fail to account for:

  • Future medical expenses
  • Long-term disabilities
  • Emotional distress
  • Pain and suffering

Once you accept a settlement, you typically waive your right to seek additional compensation, so evaluating any offer carefully is important.

Negotiation and Legal Support

If the insurance company’s offer is inadequate, you can negotiate. At this stage, having a qualified California personal injury attorney can be beneficial. An experienced lawyer can:

  • Accurately calculate the value of your claim
  • Handle all communication with the insurer
  • Present compelling evidence of liability and damages
  • Take the case to court if negotiations fail

Legal support ensures your rights are protected and strengthens your position during negotiations.

Claim Resolution

If both sides come to an agreement during the claims process, you’ll sign a release form that finalizes the settlement, and the insurer will issue payment for your claim. This marks the resolution of the matter, as the release form typically waives your right to pursue further claims related to the incident.

However, if negotiations fail and you cannot reach a fair settlement with the insurer, you may need to consider filing a lawsuit to seek the compensation you deserve. This step involves taking the matter to court, where a judge or jury will determine the outcome of your case.

It’s crucial to act promptly, as legal action is time-sensitive. California has a two-year statute of limitations for filing personal injury lawsuits. This means you have two years from the date of the accident or incident to file your case.

Failing to file within this timeframe could result in losing your right to pursue compensation entirely. So, if negotiations don’t work out, it’s important to consult with a qualified attorney to ensure you meet all necessary deadlines and protect your legal rights.

The insurance claims process is designed to compensate victims, but insurance companies are businesses focused on minimizing payouts. Understanding each step and leveraging strong legal support can make the difference between an inadequate offer and a full, fair settlement.

If you’ve been injured, working with an experienced California car accident attorney ensures you can handle the complexities of the claims process, allowing you to focus on recovery while achieving the justice and compensation you deserve.

Do I Need to Report the Accident to My Insurance Provider?

Yes, it’s important to notify your insurance provider after an accident, even if the other driver is at fault. Reporting the incident is a crucial step to protect yourself and ensure you receive the support you need. Failing to inform your insurer could even result in the termination of your policy.

Even if the accident wasn’t your fault, your insurance contract may still require you to report it. This is especially important in cases like hit-and-run accidents in California, where your insurer might help cover damages.

To simplify the process and protect your rights, consider consulting a car accident lawyer. An experienced attorney can communicate with your insurance provider on your behalf, helping you avoid claim denials and ensuring you receive the compensation you’re entitled to.

What Happens if the At-Fault Driver Doesn’t Have Insurance?

If the at-fault driver doesn’t have insurance, you may still have options to recover damages.

One of the most common safeguards in these situations is uninsured motorist (UM) coverage, a type of insurance specifically designed to protect you when the other driver is uninsured. This coverage can help compensate for various expenses, including:

If you carry UM coverage as part of your auto insurance policy, it can provide a financial safety net during an otherwise stressful situation.

However, depending on the severity of your losses and the specifics of your policy, uninsured motorist coverage alone may not be enough to cover your damages fully. In such cases, exploring additional legal options may be necessary.

For example, you may consider filing a lawsuit against the at-fault party to seek compensation directly. While pursuing legal action does not guarantee recovery, especially if the at-fault driver has limited financial resources, it’s an avenue worth exploring with the guidance of an experienced attorney.

An attorney can also help you deal with complex insurance claims, ensure you meet all filing deadlines, and identify any other potential sources of compensation. This might include tapping into other applicable policies, such as underinsured motorist (UIM) coverage, personal injury protection (PIP), or even third-party liability insurance in unique circumstances.

By working with a legal professional, you can better understand your rights and maximize your chances of securing fair compensation, despite the challenges of dealing with an uninsured driver.

Can My Claim Be Denied When Suing My Auto Insurance Company?

If your insurance company wrongfully denies a valid claim, you don’t have just to accept it; you may have the right to sue.

In California, you can hold the insurer accountable for:

  • Breach of contract (failing to honor the policy)
  • Bad faith (violating their duty to treat you fairly)

A bad faith claim allows you to recover the money you were owed and damages for emotional distress, financial hardship, and in severe cases, punitive damages if the insurer acted in a willful and reckless manner.

California law gives you up to 2 years to file a bad faith tort claim and 4 years for breach of contract. If your insurer failed you when you needed them most, a skilled attorney can help you fight back and win what you’re truly owed.

Should I Take the First Settlement Offered by the Insurance Company?

Insurance companies commonly aim to resolve claims quickly by offering settlements that may seem appealing at first glance. However, these quick settlement offers often fail to account for the full extent of your losses, potentially leaving you undercompensated. It’s important to remember that these companies are primarily focused on minimizing their payouts, not necessarily addressing your true needs.

Before agreeing to any offer, consulting an experienced attorney is crucial. A skilled California car accident lawyer will thoroughly evaluate the settlement to determine whether it adequately covers all aspects of your damages.

This includes not only immediate medical expenses but also ongoing treatment costs, lost wages from time off work, diminished future earning capacity, and any pain and suffering you’ve endured. They will also advocate on your behalf during negotiations to ensure you receive a fair and comprehensive settlement.

By involving an attorney, you gain a trusted advocate who understands the complexities of insurance claims and will work to maximize your compensation. Don’t rush into accepting an offer that doesn’t reflect the full scope of your losses. Instead, take the time to protect your rights and secure the settlement you truly deserve.

Why Working With a California Car Accident Attorney is Essential

Recovering from a car accident in California can be a long and overwhelming journey. Physical injuries, emotional trauma, mounting medical bills, and the stress of dealing with insurance companies can make the process even harder to bear.

You shouldn’t have to go through this challenging time on your own. At the Law Offices of Larry H. Parker, we are here to stand by your side and fight for your rights every step of the way.

With decades of experience and a proven track record of success, our team is dedicated to ensuring that you receive the justice and compensation you deserve.

Here’s how we can help:

  • Claim Evaluation: We’ll carefully review the specifics of your case to ensure no detail is missed.
  • Negotiation: Our team deals directly with insurers to secure the compensation you deserve.
  • Litigation Support: If necessary, we’ll take your case to court to fight for your rights.
  • Billing Assistance: We’ll help you establish strategies for managing medical bills while you wait for your settlement.

You shouldn’t have to compromise on your recovery or settle for less than what’s fair. Contact us today at 800-333-0000 or fill out our contact form to speak with a legal expert who will fight for you every step of the way.

If medical bills are piling up after a wreck, contact our auto accident lawyers for a no-cost consultation.

What Our Clients Have to Say About Us

While many personal injury attorneys can represent you, our team goes above and beyond with relentless advocacy and unwavering dedication. We don’t just handle cases; we fight tirelessly to build the strongest possible claim for every client. Our commitment to excellence is reflected in the trust and satisfaction of those we’ve helped before:

“For me Larry H Parker handled my case professionally and expeditiously. They did all they could to procure me the max amount of what was due/available to me. They even got a slightly higher percentage than they promised. Thanks.” Tanisha H.

Frequently Asked Questions About Car Accident Claims 

Need to learn more about personal injury claims? We want to help you! Here are common questions injured victims ask, which may clarify various aspects of your case.

References

comparative negligence | Wex | US Law | LII / Legal Information Institute. (n.d.). Law.Cornell.Edu. Retrieved June 9, 2025, from https://www.law.cornell.edu/wex/comparative_negligence

Deadlines to sue someone | California Courts | Self Help Guide. (n.d.). California Courts Self-Help. Retrieved June 9, 2025, from https://selfhelp.courts.ca.gov/civil-lawsuit/statute-limitations

Lester, M. (2024, March 11). MMI & Workers’ Comp: How Maximum Medical Improvement Affects Your Workers’ Comp Settlement. https://www.disabilityapprovalguide.com/. https://www.disabilityapprovalguide.com/workers-compensation/what-is-mmi-in-workers-compensation/