People usually expect someone else to cover the cost of a collision if they were not at fault. In theory, that assumption is correct. Those who cause a crash have legal and financial responsibility for the consequences of the collision.
Every driver in California should carry liability insurance, and that requirement gives people a false sense of security. They assume that they can ask for full compensation for property damage losses and other expenses if they get hurt in a wreck. Unfortunately, many people learn after a crash that insurance may not be sufficient for their financial protection after a wreck caused by another driver.
California’s requirements are simply too low
Every state has slightly different insurance requirements. California has some of the lowest mandatory insurance standards in the United States, which can leave people struggling after a major wreck.
Drivers only need $5,000 in property damage liability coverage. If someone’s vehicle is not safe to drive, $5,000 worth of coverage probably won’t be enough to repair their vehicle, let alone buy a replacement vehicle.
The bodily injury coverage requirements are a bit higher but still too low. Drivers must carry $15,000 of coverage if they cause a crash where one person gets hurt or $30,000 for a collision that affects multiple different people. That coverage should theoretically pay for both medical bills and someone’s lost wages after they get hurt.
Those with significant injuries and other challenges after a car crash will frequently find that they have sizable losses that insurance does not fully cover. Filing a personal injury lawsuit can help people recoup expenses that exceed what basic insurance coverage will provide.