What Does Liability Insurance Cover If You’re Not at Fault in a California Car Accident?

What Does Liability Insurance Cover If You’re Not at Fault in a California Car Accident?

f you are not at fault for a car accident, your own liability insurance covers nothing for your injuries or vehicle damage. Its purpose is to pay for damages you cause to others. The at-fault driver's liability insurance is responsible for covering your losses, including medical bills, car repairs, and lost income, up to their policy limits.

However, securing that payment is rarely straightforward. The other driver’s insurance provider will conduct its own investigation to determine fault, and their financial interests lie in minimizing what they pay out. They are a business, which means they must balance paying fair claims with remaining profitable. Furthermore, California's minimum liability limits, while updated in 2025, may not be enough to cover all your expenses if your injuries are serious or your car has significant damage.

This is where your own insurance policy—specifically coverages like Uninsured/Underinsured Motorist (UIM) or collision coverage—may become necessary.

If you have a question about how to get your bills paid after an accident that wasn’t your fault, call us at (858) 529-5872. We provide clarity during a confusing time.

The Straight Answer: Your Liability Policy vs. Theirs

After an accident, the most important policy isn't always your own. It's the one belonging to the driver who caused the collision. Here’s the breakdown:

Your Liability Insurance

Think of this as your financial shield. It protects your personal assets if you cause an accident that injures someone or damages their property. It pays out to others, not to you. Under the principles of liability insurance, this coverage has no role in paying for your car or your medical bills if another driver is 100% at fault. It is designed exclusively to cover the harm you cause.

The At-Fault Driver’s Liability Insurance

This is the policy designed to pay for the harm their client caused. In a tort-based state like California, the person who caused the accident is legally responsible for the resulting damages. So, their insurance is the primary source of your compensation. This is why getting the other driver's insurance information at the scene is so important.

California's Minimum Requirements

As of January 1, 2025, California law requires every driver to carry minimum liability coverage. This law is detailed in California Vehicle Code §16056. The minimums were increased to provide more protection for accident victims and are now:

• $30,000 for bodily injury or death to one person.
• $60,000 for bodily injury or death to more than one person.
• $15,000 for property damage.

While these increased limits are an improvement, a single severe accident easily exhausts these amounts, leaving you with unpaid bills.

What Should the At-Fault Driver’s Liability Insurance Pay For?

The other driver's insurance is responsible for making you "whole" again, at least financially. This legal concept means they should compensate you for all the losses you suffered because of their insured's actions. But what does that actually include?

Bodily Injury Liability Coverage

This portion of the at-fault driver's policy covers the human cost of the accident, up to their chosen policy limit ($30,000/$60,000 or higher). This isn't just for the initial emergency room visit; it is intended to cover a wide range of costs related to your physical recovery.

• Medical Bills: This is the most direct expense. It includes everything from the ambulance ride and hospital stays to follow-up doctor's appointments, physical therapy, surgery, and prescription medications.
• Lost Wages: You should be compensated for the time you were unable to work while recovering. This includes salary, hourly wages, and even lost earning opportunities if the injury prevents you from taking on new work.
• Pain and Suffering: This is a "non-economic" damage, compensating you for the physical pain and emotional distress the accident has caused you. Calculating a fair amount for this type of damage is difficult, and we advise having professional guidance to ensure you are fairly compensated.

Property Damage Liability Coverage

This is a separate part of their policy, specifically for damage to your property. It is not limited to just your car. It typically covers:

• Vehicle Repairs: The cost to restore your car to its pre-accident condition. You have the right to choose your repair shop.
• Total Loss Value: If the repairs cost more than the car is worth, the insurance company should pay you the "actual cash value" of your vehicle right before the crash happened.
• Rental Car Costs: You are entitled to the cost of a rental car while yours is in the shop or, if your car is a total loss, for a reasonable time to find a replacement.
• Damaged Personal Items: This may include other property that was in your car and destroyed in the crash, such as a laptop, cellphone, or child car seat.

A serious injury easily results in medical bills that far exceed the new $30,000 minimum. If your medical expenses are $50,000, but the at-fault driver only has the minimum coverage, their insurance will only pay $30,000.

What Happens When the Other Driver's Insurance Isn't Enough?

You've done everything right. You exchanged information, reported the accident, and submitted your claim. Then, you learn the at-fault driver only has minimum coverage, and your bills are already piling up. What now? This is where your own foresight in selecting your insurance coverage comes into play.

Introducing Underinsured Motorist (UIM) Coverage

This is an optional but highly recommended part of your own auto insurance policy. It activates when the at-fault driver has insurance, but their policy limits are too low to cover all of your damages. This coverage protects you from being left with massive debt due to someone else's decision to carry only the bare minimum insurance.

How it Works: Think of UIM coverage as a safety net you bought for yourself. If the at-fault driver's policy pays out its maximum of $30,000, but your damages total $100,000, you file a claim against your own UIM policy to cover the remaining $70,000 (assuming your UIM limits are high enough).

Explaining Uninsured Motorist (UM) Coverage

This is the other side of the same coin. It applies when the at-fault driver has no insurance at all or if they fled the scene of the accident (a hit-and-run). In a state with a high rate of uninsured drivers, this coverage is indispensable. In California, UM and UIM coverage are typically offered as a package, and it will pay for your bodily injuries, lost wages, and pain and suffering, just as the at-fault driver's policy would have.

The Role of Collision Coverage

This is another optional part of your own policy. Unlike UM/UIM, which covers injuries, collision coverage pays to repair or replace your vehicle, regardless of who is at fault. If the at-fault driver's $15,000 property damage limit isn't enough to replace your new truck, or if you simply want to get your car repaired faster without waiting for the other insurance company's investigation to conclude, you use your own collision coverage. 

Your insurance company will then pursue the at-fault driver's insurer to get reimbursed, a process that should also include your deductible.

How Fault Is Determined and Why It Is Disputed

The entire process of getting compensation hinges on officially establishing who was at fault for the collision.

The Concept of Negligence

Fault, in legal terms, comes down to negligence. To prove the other driver was at fault, we would have to show four things: that the other driver had a duty to operate their vehicle safely, that they breached that duty (such as by speeding or texting), that their actions directly caused the crash, and that the crash caused your injuries and damages.

The Role of Comparative Negligence

Insurance adjusters will look for any reason to argue you were partially to blame for the crash. They do this because California uses a "pure comparative negligence" rule, a legal concept that means your final compensation is reduced by your percentage of fault. The other insurer's goal is to make your percentage of fault as high as possible to reduce what they have to pay.

How We Establish the Other Driver's Fault

Our role is to build a case that preemptively answers the insurance company's questions and proves the other party was fully responsible. We leave no stone unturned when it comes to gathering the evidence needed to protect your claim. This frequently involves:

• The official police report.
• Statements from any witnesses to the crash.
• Photos and videos from the scene, showing vehicle positions and damage.
• Securing traffic camera or nearby surveillance footage.
• Working with accident reconstructionists to analyze the physics of the crash, if necessary.

Don’t Let Confusion Over Insurance Stop You From a Full Recovery

You paid for your insurance policy to protect you. The at-fault driver paid for theirs to cover the harm they caused. The system is designed for the responsible party to pay, but insurance companies sometimes don’t make it easy to get fair compensation.

You don't have to challenge them alone. Our firm, Car Crash Ash Accident Lawyer, handles the investigation, the paperwork, and all communication with the insurance providers. We work to ensure the evidence of fault is clear and that every category of your damages is fully accounted for in the claim.

For a straightforward explanation of your rights and options, call Car Crash Ash Accident Lawyer at (858) 529-5872.