California is not a no-fault state. That means that if you cause a car accident (or the other driver believes that you caused the accident) the other driver can sue you personally, rather than just suing your insurance company for the damages. That makes a car accident a much more legally and financially risky event than it would be in a no-fault car accident state. If you've been in a car accident recently, or if you've received notice that you're being sued for a car accident that happened in the past, here is what you need to know about being sued for a car accident in California.
You Can Be Named in a Lawsuit Even if You Weren't Driving
It can be pretty confusing to be served with court papers for a car accident when you haven't actually been in a car accident lately. However, it can happen if someone else was in an accident while driving your car. Many drivers don't realize it, but California law allows an injured driver to sue the driver, the owner of the car, or both. If the injured driver's attorney realizes that they stand a better chance of collecting a judgment from you, chances are that you'll end up being sued even if you weren't driving. This is a good reason to be wary of loaning out your car.
Your Insurance Company Will Pay for Your Lawyer
There is some good news – you usually won't have to pay for your own auto accident attorney to defend yourself when you're being sued over an auto accident. This is part of what your insurance premiums are paying for. Your insurance company should cover the cost of a lawyer, as well as any damages awarded to the plaintiff, up to the amount your policy covers. But if the damages go above what your policy covers, you'll owe the difference.
Keep in mind that damages can include repair bills, medical bills, and lost wages, as well as non-tangible damages like pain and suffering or emotional distress.
You and Your Insurance Company Could Have a Conflict of Interest
Don't make the mistake of thinking that your insurance company is always your knight in shining armor in court. In some cases, you and your insurance company may have opposing interests. This usually occurs when the insurance company believes that you did something to void your policy, or when the insurance company feels it's in their best interest to settle, but you believe you're innocent and want the case to go to trial.
In those cases, you can ask the judge to order the insurance company to provide you with independent counsel. That means there will be at least three attorneys and three sides to the court case – the other driver's, yours, and the insurance company's.
You and the Other Driver Could Both Be At Fault
Even if the other driver was partially responsible for the accident, you could be found at fault and ordered to pay damages. California is not only not a no-fault state, it's also a state that recognizes the Pure Comparative Fault Rule. That means that the victim can still collect damages even if he or she is partially or even mostly to blame for the accident.
The other driver could be as much as 99% responsible for the accident, and you could still receive a judgment and have to pay for the one percent of fault that you had in causing the accident. So, if the amount of the judgment was $100,000, but the other driver was found to be 99% at fault, you would still be on the hook for $1000 – your percentage of fault.
If you've been served with a notice that you're being sued, or if you're afraid that you may be sued for a car accident, notify your insurance company and speak to an attorney right away. The sooner you start building your defense, the better your chances of winning the case.
