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Car accident compensation in California

Beverly Law
Published by Beverly Law
Trial attorney · English y Español · (310) 552-6959
Compensation after a California car crash can cover medical bills, future care, lost income, damage to your car, and pain and suffering. How much a claim is worth depends on the injuries and treatment, the evidence of fault, your own share of fault, and the insurance available. No one can give an honest number before the medical picture is clear. In California you generally have two years from the injury to sue, so start early.

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What compensation can cover

Economic damages are the losses you can add up: hospital and doctor bills, therapy, prescriptions, future treatment your doctors expect, lost wages and income you may lose later, and repairs or the value of your car. Keep every bill and pay stub. Our page on lost wages after a car accident explains what to save.

Non-economic damages cover pain, stress, lost sleep and the ways the injury changes daily life. Under Proposition 213, a person generally cannot recover these damages if they owned an uninsured vehicle involved in the crash, or were driving without the required insurance, or were convicted of DUI for the crash (Civil Code 3333.4).

  • Medical bills, past and future
  • Lost wages and lost earning ability
  • Car repair or replacement
  • Pain and suffering
  • Out-of-pocket costs such as travel to appointments

What raises or lowers the value

The biggest factors are the injury, the treatment and how long recovery takes. Clear medical records, consistent care and a doctor’s opinion linking the injury to the crash all help. Gaps in treatment, missed appointments and statements to the insurer that downplay pain tend to lower offers. So does stopping care early because you feel a little better.

Fault matters too. California uses pure comparative fault: your own share of fault reduces your damages in proportion but does not bar recovery (Li v. Yellow Cab Co.). Photos, witness statements, the police report and video can all shape how fault is decided. See how to respond to a lowball offer.

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Insurance limits often set the ceiling

An insurer usually pays only up to its policy limits. California’s minimum liability coverage for policies issued or renewed on or after January 1, 2025 is $30,000 for injury to one person and $60,000 for two or more (Vehicle Code 16056). Serious injuries can cost more, so a lawyer looks for every policy that may apply.

Your own coverage can add to the recovery. California policies must include uninsured motorist coverage unless the policyholder signed a written agreement to delete or lower it (Insurance Code 11580.2). MedPay, if you bought it, pays reasonable medical expenses up to its limit regardless of fault (California Department of Insurance glossary).

Taxes, fees and what you keep

Under federal law, money received for personal physical injuries is generally not counted as income, though punitive damages and interest generally are taxable (26 U.S.C. 104(a)(2)). See whether a car accident settlement is taxable and ask a tax professional about your situation. How the settlement papers describe each payment can matter, so read them before you sign.

From the settlement come any attorney’s fees and case costs, and repayment of medical liens. In California a contingency fee agreement must be in writing and state the percentage, how costs are handled, and that the fee is negotiable (Business and Professions Code 6147). Our page on how much of a settlement you keep walks through the steps.

What to do now

See a doctor and follow the treatment plan. Take photos of the cars, the scene and your injuries, and write down witness names and phone numbers. Save claim numbers. Do not sign a release or give a recorded statement to the other driver’s insurer before you talk to a lawyer. Keep receipts for every expense and a short journal of how you feel.

Deadlines: a California injury lawsuit generally must be filed within two years of the injury, and a property damage lawsuit within three years (Code of Civil Procedure 338). If a city or county vehicle was involved, a written claim is generally due within six months. Call (310) 552-6959 or use the form. You owe no fees or costs unless we win.

Common questions

How much compensation can I get for a car accident in California?

There is no fixed amount. Value depends on your injuries, treatment, lost income, future care, the evidence of fault, your own share of fault and the insurance available. An honest estimate usually waits until your doctors know how you will recover. Be wary of anyone who quotes a number on the first call.

What is pain and suffering compensation?

It covers losses that do not come with a bill, such as physical pain, stress, lost sleep and how the injury limits your life. Under Proposition 213 it is generally not available to an uninsured vehicle owner, a driver without the required insurance, or a driver convicted of DUI for the crash.

Can I get compensation if the crash was partly my fault?

Yes. California uses pure comparative fault, so your damages are reduced by your share of fault but the claim is not barred. The share is decided from the evidence, so photos, witnesses and the police report matter. Read whether to accept the first offer before deciding.

Is car accident compensation taxable?

Under federal law, damages for personal physical injuries are generally not counted as income. Punitive damages and interest are generally taxable. How a settlement is described can matter, so ask a tax professional about your own situation before you sign.

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BEVERLY LAW · CAR AND TRUCK ACCIDENT ATTORNEYS

Car and truck accident lawyer — Beverly Law

If you were hurt in a car or truck crash in California and Washington, talk to a personal injury attorney. Free, confidential, English or Spanish. You owe no fees or costs unless we win.

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Related pages

Hit by a semi truck: what to do · Hit by another driver when you have no car insurance · Hit by another driver when you have no driver’s license · Uber accident: who pays · All car and truck accident questions

Sources

  1. Cal. Code Civ. Proc. § 335.1
  2. Cal. Civ. Code § 3333.4(a)(1)-(3), (b), (c); Hodges v. Superior Court (1999) 21 Cal.4th 109 (upholding statute)
  3. Li v. Yellow Cab Co. (1975) 13 Cal.3d 804, 828-829; CACI No. 405
  4. Cal. Veh. Code § 16056(a)(2), (d) (as amended by SB 1107, Stats. 2022, ch. 719); Cal. Ins. Code § 11580.1(b)(1)
  5. Cal. Ins. Code § 11580.2(a)(1)-(3), (b)(1)-(2), (f)
  6. California Department of Insurance, Auto Insurance Terms glossary; policy terms
  7. 26 U.S.C. § 104(a)(2); IRS Publication 4345
  8. Cal. Bus. & Prof. Code § 6147(a)-(b)
  9. Cal. Code Civ. Proc. § 338(c)(1)
  10. Cal. Gov. Code § 911.2(a); see also §§ 911.4, 945.4

Important: This page is general information about California and Washington law, not legal advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Last reviewed: November 5, 2026.

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