California operates under an at-fault (fault-based) car insurance system, meaning the driver who is found responsible for causing an accident is liable for covering the damages resulting from that accident. This contrasts with no-fault states, where each driver’s own insurance covers their medical expenses regardless of fault.

Key Features of California's At-Fault Insurance System

• Fault Determination: California uses a comparative fault system, where fault can be shared among multiple parties. Each party’s compensation is reduced by their percentage of fault. For example, if you are 20% at fault, your compensation is reduced by 20%.
• Liability: The at-fault driver’s insurance is responsible for paying for the other party’s economic losses, including medical expenses, lost wages, and property damage.
• Claims Process: Injured parties file claims with the at-fault driver’s insurance company to seek compensation. If damages exceed the at-fault driver’s insurance limits, injured parties may need to file a personal injury lawsuit to recover additional damages.

California’s Liability Coverage Limits (Updated 2025)

As of January 1, 2025, California increased its minimum liability insurance requirements to better reflect rising medical and repair costs:

• Bodily Injury Liability covers injuries or death to other people caused by the at-fault driver.
• Property Damage Liability covers damage to another person’s property, such as their vehicle or other physical property.

Importance of Liability Coverage Limits

• These limits represent the maximum amount an insurance company will pay for damages in an accident.
• If damages exceed these limits, the at-fault driver may be personally responsible for paying the difference.
• Higher limits provide better financial protection for both drivers and accident victims.

Evidence Used to Establish Fault and Support Claims

To prove fault and support claims for damages, the following evidence is typically important:

• Police reports and witness statements
• Photos and videos of the accident scene and injuries
• Medical records and bills
• Receipts for vehicle repairs and other related expenses
• Expert testimony if applicable

In summary, California’s at-fault insurance system requires the driver responsible for an accident to pay for damages, with minimum liability coverage limits recently increased to $30,000/$60,000 for bodily injury and $15,000 for property damage. This system emphasizes fault determination and allows injured parties to seek compensation from the at-fault driver’s insurer, with the possibility of lawsuits if insurance limits are insufficient.