No, California is not a no-fault state; it’s an at-fault, or tort, state. That means it holds the person who caused the crash responsible for the harm they caused. Injured drivers file claims against the at-fault driver’s insurance and, unlike true no-fault states, Californians keep the full right to sue for pain and suffering.
This blog covers what a no-fault state is and how California’s at-fault system works. It explores your coverage options, what happens after a crash, how shared fault affects damage recovery, and when it makes sense to contact an attorney.
What Is the Difference Between a No-Fault State and an At-Fault State?
In a no-fault insurance state, like Florida, each driver’s own insurance company pays for their medical expenses and other losses after an accident, no matter who caused the crash. Drivers in these states usually must carry personal injury protection (PIP) coverage. This system is designed to reduce the number of lawsuits and speed up compensation.
In contrast, an at-fault (or tort) system state, like California, holds the driver who caused the accident financially responsible for the damages they caused. Victims in an at-fault system file a claim with the at-fault driver’s insurance company or pursue a personal injury lawsuit to recover damages.
| No-Fault State | At-Fault State | |
| Required Coverage | Personal injury protection (PIP) required | Liability insurance required |
| Where You File | With your own insurer | With the at-fault driver’s insurer |
| What Pays First | PIP is primary | Liability is primary |
| Right to Sue | Limited | Full right to sue |
California’s At-Fault Insurance System
San Diego, like the rest of California, follows an at-fault insurance model. This means that if you’re injured in a car accident, determining who was responsible is a critical part of the claims process. Once fault is established, the responsible party (or their insurance provider) is required to pay for the damages, which may include:
- Medical expenses
- Lost wages
- Property damage
- Pain and suffering
Drivers in San Diego are required to carry liability insurance to cover damages they may cause in an accident. The limits were increased in 2025 under Senate Bill No.1107, so residents who purchased a policy before then may not have enough coverage. The current minimum liability coverage limits in California are:
- $30,000 for bodily injury coverage or death to one person
- $60,000 for injury or death to more than one person
- $15,000 of property damage coverage
While these minimums are legally required, they often fall short of covering the full costs of a serious accident. The California DMV accepts alternative forms of financial responsibility, which is the official term for your ability to pay for the damage you cause. To meet legal financial responsibility requirements, you may make a cash deposit at the DMV, you can provide a surety bond, or you can submit a self-insurance certificate.
Can You Buy No-Fault or PIP Insurance in California?
Personal injury protection (PIP) insurance is not sold in California because it isn’t used in at-fault systems. However, MedPay is an optional coverage that Californians can buy that covers the injured party’s medical bills regardless of fault. MedPay is relatively inexpensive for what it covers, but many drivers don’t even know it exists. Because it can be used to cover medical bills before fault is determined, MedPay medical payments coverage plays a critical role in helping crash victims with severe injuries who need immediate, expensive medical interventions.
What Happens After a Car Accident in California?
After a car accident in California, the first step is to determine who was at fault. This can involve gathering the police report, witness statements, and photos of the accident scene. Once fault is established, you typically have three options:
- File a first-party claim with your own insurance company. Your insurer can then seek reimbursement from the at-fault driver’s insurer through subrogation, meaning they recover what they paid on your behalf.
- File a third-party claim directly with the at-fault driver’s insurance company.
- File a personal injury lawsuit if the insurance company denies your claim or offers an unfair settlement.
Because California does not use a no-fault system, you’re not limited to your own policy limits. You can pursue the full range of damages from the at-fault driver, including medical bills, lost income, property damage, and pain and suffering; something that is often restricted in true no-fault states.
What If You Were Partly at Fault? California’s Pure Comparative Negligence Rule
One of the most important features of the California at-fault system is the pure comparative negligence rule. Under this rule, multiple parties can share liability for a single accident, and each party involved in a case is assigned a percentage of fault based on how much they contributed to the crash. You can be assigned fault for failing to wear a seatbelt, speeding, or any actions that potentially increased the severity of your injuries.
Where there’s shared fault, there will be a damages reduction. For example, if you’re awarded $100,000 in damages but are found to be 20% responsible for the accident, your final compensation will be reduced to $80,000. What sets California apart from other comparative negligence states is the “pure” aspect, which allows injured individuals to recover damages even if they are 99% at fault, as discussed in Li v. Yellow Cab Co. (1975) 13 Cal.3d 804.
Keep in mind there is an exception under California Civil Code section 3333.4, where an uninsured driver generally cannot recover non-economic damages even when someone else caused the crash, unless the at-fault driver was convicted of DUI.
What If the Other Driver Has No Insurance?
If the at-fault driver has no insurance, uninsured motorist (UM) coverage on your own policy can step in to pay for your injuries. Where the liable party has insufficient insurance to cover your losses, underinsured motorist (UIM) coverage can bridge the gap. California insurers are required to offer UM/UIM coverage, but drivers are allowed to decline it in writing. If you’re unsure about your coverage, check your policy documents.
In a hit-and-run, where the at-fault driver flees and can’t be identified, UM coverage often treats the unknown driver as uninsured. It can cover your losses, subject to your policy’s terms and deductible. If your policy limit is reached, you can pursue a lawsuit against the at-fault driver directly. However, the compensation you can recover is limited to their collectible assets, such as a car or home, which are often minimal.
Will Your Premium Go Up After an At-Fault Accident?
Practices vary by provider, but as a general rule, insurance premiums tend to increase following an at-fault accident claim above a specified dollar limit, and the increase can stay on your driving record for several years. California law limits when insurers may surcharge, and some situations are specifically protected. Common exceptions where your rate should not increase include:
- Damage from a hit-and-run, where another driver caused the harm and fled
- Damage to your vehicle while it was legally parked and unoccupied
- Being rear-ended without having committed a moving violation yourself
Why It Matters That California Is Not a No-Fault State
Knowing that California is an at-fault state empowers accident victims to understand their rights fully. It means:
- You aren’t limited to seeking compensation only through your own insurer.
- You have the right to sue the at-fault driver for full damages, including non-economic damages like emotional distress and pain and suffering.
- Insurance companies must investigate and determine fault, which can impact how quickly or fairly a claim is resolved.
It also means that evidence collection is critical. Because the burden of proof is on the claimant, having clear documentation can be the difference between a successful and unsuccessful claim.
Talk to a San Diego Car Accident Lawyer
Because California is an at-fault state, someone has to prove who caused the crash, and the insurer making that call is not a neutral party. Most straightforward claims settle without a lawyer. However, when fault is disputed, or the injuries are serious, having a San Diego car accident lawyer who knows how insurers operate can change the outcome entirely. That’s where experience against insurance companies counts.
At HHJ Trial Attorneys, we have a track record of holding insurers accountable, including an $18M verdict against an insurance company and a Ventura County case where the defense offered $350,000 before trial. The jury returned a $10M verdict. If you’re facing a disputed liability claim or another person has seriously injured you, contact us for a free case review. We work on a contingency fee basis, which means that you only pay us if we win. No recovery, no fee.
