California law gives accident victims and policyholders rights that are rarely discussed in ordinary conversations with an adjuster. There are deadlines for responding to claims, rules governing claim investigations, rights involving auto repairs, special requirements for hit-and-run claims, and even consumer databases you can check yourself.
Here are some of the most important things to know before you resolve an accident claim in California.
1. What You Say to an Insurance Company Can Affect the Claim
After a claim is opened, an insurance company may ask for detailed information about the accident and may request a written or recorded statement. The California Department of Insurance notes that an insurer may take a written or recorded statement as part of its investigation. California Department of Insurance accident guide
That makes accuracy important.
Statements such as:
“I feel fine.”
“I didn't see the other vehicle.”
“I'm not sure what happened.”
“I don't think I'll need more treatment.”
may take on greater significance later, particularly if medical symptoms develop, another witness gives a different account, or additional evidence changes the understanding of how the accident occurred.
That does not mean every insurance call is secretly recorded. California Penal Code §632 generally restricts intentionally recording a confidential communication without the consent of all parties, subject to statutory exceptions. California Penal Code §632
The safer principle is simpler: assume anything you tell an insurance company may become part of the claim file. Give accurate information, do not guess about facts you do not know, and understand whose insurer is requesting the statement. Your own insurance policy may also impose cooperation requirements.
People who are unsure how to handle an insurer's questions can learn more about dealing with adjusters from Kubota & Craig's guide to insurance adjusters after an Irvine car accident or speak with an Irvine car accident lawyer before making decisions that could affect a serious injury claim.
2. An Early Settlement Can Arrive Before the Full Medical Picture Does
A fast settlement can sound attractive when medical bills are arriving and a damaged vehicle needs to be repaired. But the amount offered early in a case may be calculated before the long-term effects of an injury are understood.
That is especially important with injuries involving the brain.
The Centers for Disease Control and Prevention explains that some symptoms of a mild traumatic brain injury or concussion appear immediately, while others may not appear until hours or days after the injury. Symptoms can also change during recovery. CDC: Symptoms of Mild TBI and Concussion
This is a better reason to exercise caution than simply asking whether an MRI, CT scan, or specialist evaluation has occurred. Not every injury requires imaging, and imaging alone does not determine the seriousness or future effect of an injury.
Before signing a settlement agreement or release, an accident victim should understand what claims are being resolved and whether the medical consequences of the accident are sufficiently understood.
When an accident causes permanent disability, traumatic brain injury, severe burns, spinal injuries, or other life-changing harm, the financial issues may extend far beyond the bills that have already arrived. Kubota & Craig provides additional information about these cases through its Orange County catastrophic injury practice.
3. Public Social Media Posts Can Become Part of the Story
Information you make publicly available on social media should not be treated as private.
Photographs, videos, location information, comments, or activity posted publicly online can create questions during an insurance dispute or lawsuit. A photograph without context may be misleading. A short video from a good day may not reflect limitations experienced during the rest of the week. A friend's comment may describe an accident differently than the people who were actually there.
The practical rule is not to exaggerate an injury online—or offline—and not to post casually about an accident while a serious claim is pending.
At the same time, do not start deleting potentially relevant material simply because a dispute has developed. If litigation is possible, talk with counsel about preserving information that may become evidence.
4. Insurance-Industry Consumer Reports Can Contain Years of Prior Claim Information
One important example is C.L.U.E., the Comprehensive Loss Underwriting Exchange operated by LexisNexis.
According to the Consumer Financial Protection Bureau, C.L.U.E. collects and reports up to seven years of auto insurance claims to help inform insurance pricing and underwriting decisions. LexisNexis also reports certain driving-behavior information through its Telematics OnDemand product. CFPB information about C.L.U.E.
Here is the part many consumers do not know: the CFPB says you can request one free C.L.U.E. consumer report every 12 months. Consumers can also request a security freeze.
That means a consumer who is concerned about inaccurate prior-claim information does not have to wonder what the database says. You can request your own report and review the information being associated with you.
This is more precise than assuming insurers maintain a universal database containing every medical treatment, lawsuit, and settlement a person has ever had. Different databases contain different information, and claims about what an insurer knows should be based on the particular data source involved.
5. Evidence Can Disappear Much Faster Than the Lawsuit Deadline
An accident claim may last months or years. Evidence sometimes lasts only hours, days, or weeks.
Depending on the accident, important evidence can include:
photographs and video of the scene;
vehicle damage;
dash-camera footage;
nearby surveillance footage;
witness contact information;
roadway conditions;
damaged products or components;
vehicle electronic data; and
records created shortly after the event.
For vehicle crashes, one overlooked source is the Event Data Recorder, or EDR. The National Highway Traffic Safety Administration describes an EDR as recording technical vehicle and occupant information for a brief period—seconds, not minutes—before, during, and after a crash. Depending on the system, data can relate to vehicle dynamics, driver inputs, restraints, and the crash itself. NHTSA Event Data Recorder research
Commercial truck crashes can involve additional categories of evidence, including carrier records and electronic information. Kubota & Craig discusses the investigation of those cases on its Orange County truck accident lawyer page.
Evidence preservation can be just as important outside auto accidents. A spill can be cleaned, a dangerous condition repaired, or surveillance footage overwritten after a property injury. Kubota & Craig's premises liability practice page explains the types of property-accident cases the firm handles.
Do Not Forget California's 10-Day DMV Reporting Requirement! There is also a separate administrative requirement after many California crashes.
The California DMV says an SR-1 accident report must be submitted within 10 days when someone is injured or killed or property damage exceeds $1,000. The requirement applies regardless of fault, and the SR-1 is required in addition to reports made to police, CHP, or an insurance company. California DMV SR-1 accident reporting
That is an important distinction: notifying the insurance company does not satisfy the DMV requirement.
6. California Insurers Have Actual Claim-Handling Deadlines
One of the most useful things an accident victim can know is that “we're still reviewing it” is not the only rule governing a claim.
California's Fair Claims Settlement Practices Regulations establish claim-handling standards. The California Department of Insurance summarizes several of the most important deadlines for consumers:
An insurer generally must acknowledge a claim, begin the investigation, provide necessary forms and instructions, and provide reasonable assistance no later than 15 days after receiving notice of the claim.
The insurer generally must respond to communications from a claimant within 15 days.
The insurer generally must accept or deny a claim no later than 40 days after receiving proof of claim.
After a claim has been accepted and settlement reached, payment generally must be made no later than 30 days afterward.
The 40-day period is especially important to understand: it generally runs from receipt of proof of claim, not simply from the day the collision occurred.
If an insurer needs additional time to determine a claim, California regulations require more than indefinite silence. Section 2695.7 provides for continuing written notices when a determination cannot yet be made. Those notices generally must explain why additional time is needed and continue at specified intervals while the investigation remains open. California Department of Insurance Fair Claims Settlement Practices Regulations
The regulations also require a thorough, fair, and objective investigation and restrict insurers from repeatedly seeking information that is not reasonably necessary or material to resolving a claim dispute.
California Insurance Code §790.03(h) identifies a number of unfair claims-settlement practices when they are knowingly committed or performed with such frequency as to indicate a general business practice. These include failing to act reasonably promptly on claim communications, failing to maintain reasonable standards for prompt investigations, and failing to attempt prompt, fair, and equitable settlements where liability has become reasonably clear. California Insurance Code §790.03
These Rules Are Not Merely Theoretical
In October 2025, the California Department of Insurance filed administrative enforcement actions against Tesla-related insurance companies and State National Insurance Company alleging repeated failures involving claim delays, inadequate investigations, delayed payments, and other claim-handling problems.
Those allegations were made in administrative enforcement actions and should not be described as final adjudicated findings. But the proceeding provides a concrete example of California regulators invoking claim-handling laws against insurers accused of systemic violations. California Department of Insurance enforcement announcement
If your claim appears stalled, document communications, keep copies of requests and responses, and pay attention to the dates.
7. A Claim Denial Is Not Necessarily the End of the Inquiry
If an insurance company denies a claim, ask what factual and policy basis supports the decision and keep the denial letter.
California's Fair Claims Settlement Practices Regulations contain specific requirements governing claim denials. Among other provisions, §2695.7 addresses written notification involving third-party claim denials or disputes and notice concerning review by the California Department of Insurance. California Fair Claims Settlement Practices Regulations
Consumers can also take a dispute directly to the regulator.
The California Department of Insurance's Consumer Services Division investigates claim-related complaints and claim-handling practices. California Department of Insurance Consumer Help
Consumers can submit a complaint through the state's Consumer Complaint Center.
That does not replace the need to preserve a lawsuit deadline, but it gives consumers an independent government channel when they believe an insurer is not handling a claim properly.
8. The Other Driver Having “Insurance” Does Not Mean There Is Enough Insurance
California's minimum liability limits increased for policies issued or renewed beginning January 1, 2025.
Current minimum liability limits are:
$30,000 for bodily injury or death to one person;
$60,000 for bodily injury or death to two or more people in one accident; and
$15,000 for property damage.
California Vehicle Code §16056
A $30,000 bodily-injury policy can be exhausted quickly in an accident involving surgery, hospitalization, significant lost income, or permanent injury.
That is why accident victims should also examine their own insurance policy.
California insurers must offer uninsured/underinsured motorist coverage with auto liability policies subject to the statutory rules. The California Department of Insurance explains that a consumer who chooses not to purchase uninsured motorist coverage must sign a waiver declining it. California Department of Insurance Auto Insurance Guide
Uninsured motorist coverage may apply when the at-fault driver has no liability insurance, while underinsured motorist coverage may become important when the responsible driver's available coverage is insufficient and the statutory requirements are satisfied.
California's detailed UM/UIM rules are contained in Insurance Code §11580.2.
A car accident attorney at Kubota & Craig can review the policies that may apply to a collision, including potential uninsured or underinsured motorist coverage.
9. California Hit-and-Run Claims Have Deadlines Many Drivers Never Hear About
Hit-and-run accidents deserve special attention because California's statutory uninsured-motorist rules contain unusually specific requirements when the driver is unknown.
For an unknown vehicle to fall within the statutory uninsured-motorist definition under Insurance Code §11580.2, the statute generally requires:
bodily injury arising from physical contact with the unknown vehicle or with the vehicle occupied by the insured;
reporting the accident to the appropriate police, sheriff, or CHP agency within 24 hours; and
filing a sworn statement with the insurer within 30 days thereafter describing the claim against the unidentified driver.
California Insurance Code §11580.2
There is another important deadline.
For a cause of action under the uninsured-motorist statute to accrue, one of the actions specified by §11580.2 must generally occur within two years of the accident—for example, filing suit against the uninsured motorist, reaching agreement as to the amount due, or formally instituting arbitration in the manner required by the statute.
These rules are technical, and the precise facts and policy language matter. But the practical lesson is straightforward: a hit-and-run victim should not assume that merely notifying an insurer whenever convenient protects every UM right.
10. An Insurance Company Cannot Require You to Use a Specific Body Shop
California consumers have rights involving vehicle repairs.
The California Department of Insurance states that an insurer cannot require a consumer to use a particular auto body repair shop. If a consumer selects a different shop, the insurer generally must pay reasonable repair costs consistent with accepted trade standards, subject to the applicable policy and law. California Department of Insurance auto repair guidance
California's Auto Body Repair Consumer Bill of Rights also recognizes a consumer's right to obtain an independent repair estimate.
Parents Should Know About Car-Seat Replacement Too
California has another remarkably specific protection that families frequently overlook.
Insurance Code §11580.011 requires applicable automobile liability coverage to provide for replacement of a child passenger restraint system that was damaged or was in use by a child during an accident when the policy's liability coverage applies because of an insured's liability. California Insurance Code §11580.011
For parents dealing with injuries, towing, repairs, and insurance paperwork after a crash, a damaged car seat may not be the first expense they think to raise.
11. A Settlement Check May Not Be the Same as the Amount You Ultimately Keep
Medical insurance can create another issue that accident victims sometimes discover late in the settlement process.
Medicare
Medicare may make conditional payments for accident-related medical treatment when another party or liability insurer may ultimately be responsible.
The Centers for Medicare & Medicaid Services explains that those payments are conditional because Medicare may seek repayment when the beneficiary receives a settlement, judgment, award, or other payment. CMS Medicare Recovery Process
CMS also advises beneficiaries and their attorneys to recognize Medicare's reimbursement obligation during settlement negotiations. CMS Conditional Payment Information
Medi-Cal
California has a separate process for Medi-Cal.
The California Department of Health Care Services states that a Medi-Cal member or representative must notify DHCS in writing within 30 days of filing a personal-injury action or claim. DHCS can then determine whether it has recovery rights for injury-related services paid by Medi-Cal. DHCS Personal Injury Lien Process
This is one reason a settlement should be evaluated based on the expected net recovery, not simply the headline number offered by an insurer.
12. The Insurance Negotiation Does Not Stop the Lawsuit Clock
An insurance claim and a lawsuit deadline are different things.
California Code of Civil Procedure §335.1 generally provides a two-year limitations period for an action involving injury or death caused by another person's wrongful act or neglect. California Code of Civil Procedure §335.1
Important exceptions and shorter deadlines can apply depending on the defendant and circumstances, so a victim should not assume every case has exactly two years.
California's claims regulations provide certain limitations-warning protections for unrepresented claimants, but those protections are not a good reason to wait. Insurance negotiations can continue while a legal filing deadline approaches.
The safer approach is to identify the applicable deadline early rather than relying on an insurance company to protect it for you.
13. You Can Check an Insurer's California Complaint Record
Consumers can research more than policy prices.
The California Department of Insurance publishes an Automobile Complaint Composite Report covering 50 large auto insurers licensed in California.
The current report includes insurer rankings, approximate California exposures, the number of justified complaints, and a justified complaint ratio per 100,000 exposures for complaint years 2025, 2024, and 2023. California Automobile Complaint Composite Report
A complaint ratio does not prove that an insurer mishandled any particular person's claim. But it gives consumers something more useful than online star ratings: standardized complaint information published by California's insurance regulator.
What Should You Do If an Insurance Company Is Pressuring You to Settle?
The most important steps are often simple:
know which insurance policies may provide coverage;
keep copies of claim correspondence;
document your injuries and economic losses;
preserve photographs, video, witness information, and other evidence;
know the applicable claim and lawsuit deadlines;
understand what a settlement release will resolve;
investigate Medicare or Medi-Cal reimbursement issues when applicable; and
ask questions when an insurer's explanation does not make sense.
Insurance companies have experienced professionals handling claims every day. Accident victims generally do not.
That difference in experience is one reason legal advice can be valuable when an injury is serious, liability is disputed, multiple insurance policies are involved, or an insurer is pressing for a settlement before the consequences of an accident are known.
Kubota & Craig represents people injured in motor vehicle collisions, catastrophic injury cases, premises-liability accidents, truck crashes, and other personal injury matters throughout Orange County and Southern California. Learn more about the firm's Orange County personal injury practice or contact Kubota & Craig for a consultation.
About the Author
Cynthia A. Craig is a founding partner of Kubota & Craig in Irvine, California. She has represented injured people throughout Orange County and Southern California for more than 20 years in matters involving motor vehicle collisions, premises liability, government negligence, wrongful death, and catastrophic injuries. She is a past president of the Orange County Trial Lawyers Association.
Legal information reviewed August 8, 2026. This article is for general educational and informational purposes and is not legal advice. Laws, regulations, deadlines, insurance policies, and individual circumstances differ. Reading this article does not create an attorney-client relationship.