What happens if the at fault party doesn't have enough insurance to pay a claim in California?
Asked by: Mrs. Emmanuelle Gusikowski DVM | Last update: January 10, 2026Score: 4.1/5 (13 votes)
What happens when a car accident claim exceeds insurance limits in California?
When accident damages exceed policy limits, the at-fault party is personally liable for the excess and must pay the remaining amount out of pocket. It would be best to have an experienced lawyer guide you through the complicated process of pursuing compensation beyond the defendant's liability coverage.
What if insurance doesn't pay enough?
If you're not satisfied with the outcome of your dispute, you have the right to sue the insurance company in a court of law. You can use these resources to find legal help. You can also ask for alternative dispute resolution, which uses mediation with a neutral third party to settle disputes outside court.
What if the at-fault driver has inadequate insurance to cover all my damages?
If the driver responsible for your accident doesn't have insurance, and you have uninsured motorist coverage, your insurance company will step in to cover your damages. Your legal team will still need to prove the other driver was at fault, and in some cases, your insurer may try to limit what they pay out.
Who pays for a car accident if you don't have insurance in California?
What Happens If I Don't Have Insurance and I Cause an Accident in California? If you don't have auto insurance and it is determined that you were responsible for the collision, it's likely you'll be responsible for paying the other driver's damages (injuries and property damage) as well.
What If The At-Fault Driver Doesn't Have Enough Coverage?
Do insurance companies go after uninsured drivers California?
While insurance companies may pursue uninsured drivers to recover claim costs, the process can be complex and time-consuming. Uninsured drivers involved in accidents should seek legal counsel promptly to protect their rights and explore possible compensation avenues.
What happens if someone sues you for more than your insurance covers?
You may face a lawsuit for the uncovered amount when damages exceed your policy limits. The injured party could attempt to seize your personal assets, which may include: Savings accounts. Wages (via wage garnishment)
Is it worth suing an uninsured driver?
Suing the uninsured driver might not be worth it unless they are financially capable of satisfying a judgment. After a crash with an uninsured or underinsured driver, contact a car accident lawyer about your legal options.
What happens if car insurance coverage isn't enough?
Are you holding enough auto liability coverage? If not, you could be financially on the hook for any expenses over and above the limits of your insurance policy if you are found at-fault for a car accident. You don't want to be left with a huge bill to pay.
What if insurance settlement is not enough?
Take Them to Court
You can file a lawsuit when the insurance settlement offer is too low. You can also file a lawsuit if attempts at discussion and negotiation fail. Starting an injury suit doesn't necessarily mean that negotiations are over.
Who gets the insurance check when a car is totaled?
If you own the car without any loans or liens, you will receive a check for the value assessed by the insurance company. If there is a loan, the check usually goes first to the leasing company or the lender. If you owe money on the vehicle, you should notify the lending company that your car has been totaled.
How long can you go without paying insurance?
If you missed a payment, your insurance company may have a grace period to give you time to pay your bill and reinstate your policy before it lapses. This grace period can be between 10 and 20 days. If your insurer won't renew your policy, you'll get notified and you'll have time to shop around for quotes.
How often do auto accident settlements exceed the policy limits?
In fact, this only happens about four percent of the time, according to an Insurance Research Council report. While it is rare for settlements to exceed insurance limits, there are a lot of car accidents.
What is considered a large insurance claim?
In simple terms, it's an insurance claim for property damage that's significant enough to disrupt normal business operations. These claims often exceed $200,000 and involve complex processes and documentation. Key points include: Severe damage caused by natural disasters like fire, hurricane, or flood.
What is considered large accident forgiveness?
Available to customers in most states as part of the Loyalty Rewards program, Large Accident Forgiveness rewards those who stay with Progressive for at least five years and remain accident and violation-free for up to five consecutive years.
How do I sue an uninsured driver in California?
California allows those injured in car accidents to use the civil court system to seek compensation from uninsured drivers for the expenses and quality-of-life impacts they incurred. To do so, you must file your claim in court within two years of the accident.
Is it worth suing someone with no money?
Essentially, you might think suing someone with no money is futile, but that's not the case. The law protects your rights and allows you to seek compensation if someone causes you harm or loss, regardless of their financial status.
What is the uninsured driver promise?
What is an uninsured driver promise? If your car insurance policy includes an 'uninsured driver promise' it means that, if a driver without insurance hits your car and it's not your fault, you can make a claim for repairs and you will not lose your no-claims bonus or have to pay an excess.
What happens when someone sues your insurance after an accident?
If the losses of an auto accident exceed the coverage from an insurer, the injured victim may sue you to recover injury-related losses. If someone sues you beyond your insurance coverage, a hefty judgment award can affect your finances. However, you can defend yourself in court.
What happens if you can't pay a car accident lawsuit?
The Consequences of Not Paying a Car Accident Lawsuit
The court could garnish your wages, put a lien on your property, or order you to sell assets to come up with the money. If you still cannot pay, you could be sent to jail. The court may allow you to set up a payment plan in some states.
How likely is an insurance company to sue you?
While subrogation allows insurance providers to pursue third parties, an insurer usually cannot sue their policyholders. However, there are certain situations where an insurer may take legal action against its policyholder.
Will my insurance go up if I get hit by an uninsured driver?
However, under California's proposition 103, insurance companies are not allowed to raise rates or drop a person because they made an uninsured motorist claim.
Will insurance pay for a rental car during repairs?
Yes, if you have Rental Reimbursement Coverage, your insurance will cover the cost of a rental car while your vehicle is being repaired, even if you are at fault. If the other driver is at fault, their insurance will typically cover the cost of your rental car during the repair period.
What happens if someone who isn t on your insurance crashes your car California?
Insurance follows the vehicle, so if someone else drives your car and gets into an accident, your insurance will handle the claim. This is known as permissive use — your policy covers the damage, not theirs. However, there are some exceptions to this rule.