Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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California isn’t a “no-fault” state for auto insurance.[1] Instead, it’s an “at-fault” or “tort” state. This means the driver who caused the crash is financially responsible for injuries and damages. California law requires claims to be filed with the at-fault driver’s insurer. But in some cases, more than one driver can be at fault.
Below, we’ll take a closer look at what happens after an accident in an at-fault state and review some types of optional California car insurance to consider for added protection.
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California is an at-fault car insurance state
California is one of 38 states that uses an at-fault, or tort, car insurance system. After an accident, the liability coverage of the at-fault driver generally pays for the damages and injuries of the driver who wasn’t at fault, as well as passengers in the other car.
California drivers must carry a minimum amount of liability insurance, but it isn’t always enough to cover an at-fault accident.[2] In full-tort states like California, you can sue at-fault drivers after a car accident, but limitations may apply.[3]
What are shared fault rules in California?
In an at-fault state like California, drivers can share fault for a car accident. The police, insurers, or the court system typically determines the share of each driver’s responsibility for the accident — commonly called “comparative negligence.” If you’re at fault for 51% or more of an accident, you’ll likely see your insurance rates go up the next time your policy renews.
Serious offenses, such as DUIs or accidents that result in death, typically raise rates the most.
But if you’re not at fault for the crash, or your share of comparative negligence is 50% or less, your insurance company likely won’t raise your rates.
At-fault vs. no-fault car insurance
Most U.S. states use an at-fault system. This means the insurance company of the driver who caused the car accident pays for costs related to the other driver’s (and their passengers) injuries and property damage.
In no-fault states, each driver must submit a claim with their insurer for bodily injuries, no matter who’s at fault. In these states, the at-fault driver’s insurance company covers damage to your vehicle, but you’ll need to carry personal injury protection(PIP) to cover costs associated with your injuries, like medical bills and lost wages, regardless of fault.
Only 12 U.S. states and Puerto Rico use no-fault systems — Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Drivers in no-fault states typically pay 13% more for car insurance, according to Insurify data. Lawsuits for damages from accidents are allowed in both at-fault and no-fault states, but drivers in no-fault states typically face more restrictions.
Here are some key differences between at-fault and no-fault states:
Insurance Factor
▲▼
At-Fault
▲▼
No-Fault
▲▼
Whose policy pays in case of bodily injury from an accident?
The insurance company of the driver who caused the accident
Your insurer, regardless of who caused the accident
Who determines fault?
Law enforcement, insurers, and the courts
Law enforcement, insurers, and the courts
Is personal injury protection (PIP) coverage required?
No
Yes
Can you sue the at-fault driver for injuries?
Yes
Yes, but limitations usually apply
Minimum car insurance requirements in California
As of Jan. 1, 2025, California law requires all drivers to carry the following amounts of minimum-liability coverage:
$30,000 in bodily injury for injury or death to one person
$60,000 in bodily injury for injury or death per accident
$15,000 in property damage
Drivers in the Golden State can also choose from several types of coverage options to meet state minimums, including:
A standard liability car insurance policy
$75,000 cash deposit with the DMV
Self-insurance certificate issued by the DMV
$75,000 surety bond from a California-licensed company
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Optional car insurance coverages in California
Minimum coverage levels generally don’t offer enough protection for large claims or potential lawsuits. Carrying higher levels of liability insurance helps protect you financially.
The following additional insurance coverage options offer California drivers even more financial protection.
Collision coverage
Collision insurance covers damages to your car after a collision with another vehicle or object and pays out the actual cash value (ACV) of your vehicle if it’s totaled.
Comprehensive coverage
Comprehensive insurance pays for damage to your vehicle from a non-collision event, like theft, vandalism, severe weather, or hitting an animal.
Gap coverage
Gap insurance covers the difference between your car’s ACV and what you owe on your car loan. Most lenders require it when you lease or finance your car.
Uninsured/underinsured motorist coverage
Underinsured/uninsured motorist insurance helps pay your medical expenses and property damage if a driver without insurance or with inadequate liability coverage hits you. California requires insurers to offer this coverage, but you can opt out by signing a waiver.
Medical payments coverage
Medical payments insurance, or MedPay, covers medical expenses for you and your passengers, regardless of fault.
What to do in case of a car accident in California
After a car accident in California, it’s important to follow these steps:[4]
Stop and move your vehicle. Pull over and move your vehicle to a safe location, if possible. Failure to do so can result in citations, fines, or the police impounding your vehicle.
Contact the police. Call 911 to report the accident and request emergency services. If anyone is injured or killed in a crash and law enforcement isn’t present at the scene, the driver (or occupant in the vehicle) must immediately report the accident to the police in writing.
Have documents handy. When the police arrive, be prepared to show your driver’s license, vehicle registration card, and proof of financial responsibility, like your car insurance card. Failure to do so can result in a citation and a fine.
Document accident details. Note the date and time of the accident, the location, and other details, such as weather conditions. Also, be sure to take photos of the damage and the rest of the scene. The police and insurance adjusters can use this information to help determine fault.
Submit an SR-1 report to the DMV. When there’s damage over $1,000, injury, or death, California law requires insurers, brokers, or legal representatives to submit a Report of Traffic Accident Occurring in California (SR-1) to the California Department of Motor Vehicles within 10 days.
California car insurance FAQs
Getting into a car accident is a stressful experience that can leave you on the hook financially if you’re at fault or don’t have enough insurance coverage. Here’s a closer look at the answers to some commonly asked questions about California car insurance.
What if an at-fault driver is uninsured in California?
In California, when an at-fault driver is uninsured or doesn’t have enough insurance, they may not be able to cover the costs of damages or injuries. Carrying optional uninsured/underinsured motorist insurance helps protect you financially if the at-fault driver is unable to pay.
Is California a 50/50 state in car accidents?
No. California isn’t a 50/50 state in car accidents, but drivers can share fault for the crash. In a system called comparative negligence, law enforcement, insurers, and the courts decide each driver’s share of responsibility after an accident.
Will your California car insurance rate go up if you’re not at fault in an accident?
No. If you’re not at fault in an accident, your insurance company typically won’t raise your rates. But if you’re at least 51% at fault, your insurer may add a surcharge when you renew your policy.
Should you hire a lawyer after an accident in California?
It depends. Hiring a lawyer after a car accident in California isn’t always necessary. But if the crash was serious, an accident attorney, like a personal injury lawyer, may be able to help you navigate complicated legal issues.[5]
Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare.
Sarah has been a contributor at Insurify since December 2022.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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