In this article, we break down how car accident compensation works in California, and what you need to know if you’re thinking about filing a lawsuit.
If you’ve been injured in a car accident in California, one of the first questions that may come to mind is: “How much can I sue for?”
In California, there is no limit to the financial compensation you can seek in a car accident lawsuit. When someone is injured in a car accident, it takes time and resources to recover from the physical, emotional, and financial damage. The amount of compensation you sue for should be reflective of the damages that you sustained in the car accident.
If you are considering an insurance settlement or are wondering if litigation is the better route for you, speaking with a car accident lawyer can provide valuable insight about the benefits of each option. California car accidents can cause serious bodily injuries and property damage and in some cases death, so having a knowledgeable and skilled car accident lawyer on your side can be extremely beneficial for the outcome of your case.
Below are some factors to consider after you or a loved one have been injured in a car accident:
California Is a “Fault” State
California follows a fault-based system for car accidents. That means the driver who caused the crash (or their insurance company) is legally responsible for the damages.
You have the right to file a claim with:
- The at-fault driver’s insurance company
- Your own insurance company (in certain situations)
- Or file a personal injury lawsuit if a fair settlement can’t be reached
But how much you can actually recover, or sue for, depends on the specifics of your case.
Types of Damages You Can Recover
In a car accident lawsuit, the amount you can sue for is based on your damages – the losses you suffered as a result of the crash. These are generally divided into two categories:
- Economic Damages (Tangible Losses)
These are measurable financial losses and may include:
- Medical bills (past and future)
- ER visits, surgeries, doctor visits, rehabilitation, prescriptions
- Lost wages due to time off work
- Loss of earning capacity if you can’t return to your job
- Property damage (vehicle repairs or total loss payout if your vehicle was totaled)
- Out-of-pocket expenses (transportation, childcare, home care, etc.)
There is no cap on economic damages in California in car accident cases.
- Non-Economic Damages (Intangible Losses)
These cover the emotional and psychological impact of the crash, such as:
- Pain and suffering
- Emotional distress
- Anxiety, PTSD, depression
- Loss of enjoyment of life
- Disfigurement
- Partial or total disability
- Loss of companionship or consortium (for a spouse)
Again, there is no cap on these damages in most personal injury cases – except in medical malpractice cases.
How Much Can You Actually Sue For?
Technically, you can sue for the full amount of your damages, but whether you recover that amount depends on:
- The severity of your injuries (minor vs. serious or catastrophic)
- Total medical and rehabilitation costs, and future medical care needed
- Lost wages and additional impact on your career and earning ability
- Disability (partial or full)
- Amount of all applicable insurance policy limits
- Availability of additional parties (employer, third party, etc.) to claim against
In some cases, car accident victims may be able to sue for hundreds of thousands or even millions of dollars – especially when the injuries are life-changing.
Can You Sue for Punitive Damages?
In some cases, yes. California allows punitive damages in personal injury lawsuits, but only when the at-fault driver acted with reckless (as opposed to negligent) disregard of safety or acted intentionally – for example driving while intoxicated, reckless driving (driving twice the posted speed limit), hit-and-run behavior, or where there was intentional misconduct such as running someone over with a vehicle intentionally.
Punitive damages are meant to punish the wrongdoer – not just compensate the victim. These are awarded at the discretion of the judge and jury and can significantly increase the total value of a claim.
What If You Were Partially At Fault?
You can still make a claim. California uses a pure comparative negligence rule. This means if you were partially responsible for the crash, your compensation will be reduced by your percentage of fault.
Example:
If you’re awarded $100,000 in damages but found 20% at fault, your compensation would be reduced to $80,000.
Even if you were mostly at fault, you can still recover some damages — but your percentage of recovery goes down.
Do Car Accident Settlements Have a Maximum Payout?
There’s no legal maximum for most personal injury settlements in California, unless:
- You’re suing a government agency (which has damage caps and special claim rules)
- The case involves medical malpractice (non-economic damages are capped in medical malpractice claims depending on the year, due to MICRA reform)
While generally there is no maximum on the amount you can seek for a car accident, factors such as the responsible party’s ability to pay and the amount of any and all available and applicable insurance can and often do impact the amount actually recovered.
Your attorney can help identify all sources of compensation – including multiple insurance policies, employer liability, or other responsible parties.
Should You Sue or Settle?
Many car accident cases settle out of court – and for good reason. Settlements are often faster, less stressful, and less expensive than pursuing a lawsuit and going to trial. But if the insurance company refuses to offer a fair compensation amount, filing a lawsuit may be your best option.
An experienced California car accident attorney will:
- Calculate the true value of your claim
- Handle all negotiations and paperwork
- File a lawsuit if needed
- Fight for maximum compensation, whether in court or through a settlement
Frequently Asked Questions
How much can someone sue for in a car accident in California?
There’s no specific limit – you can sue for the full value of your economic and non-economic damages. This may include medical bills, lost wages, pain and suffering, and more.
Are there any caps on car accident settlements in California?
In most car accident cases, no. California doesn’t impose a cap on damages unless the case involves medical malpractice or certain government entities.
Can I still get compensation if I was partially at fault?
Yes. California follows pure comparative fault rules, so your compensation will be reduced by your percentage of fault – but you can still recover some of your damages.
What kinds of damages can I recover in a lawsuit?
You may be eligible for economic damages (medical costs, lost income, etc.) and non-economic damages (pain and suffering, emotional distress, etc.). In cases involving egregious behavior such as DUI and hit and run, punitive damages may apply.
How long do I have to sue after a car accident?
You typically have 2 years from the date of the accident to file a personal injury lawsuit in California. If a government entity is involved, you have only 6 months to file a formal written claim. Don’t delay – acting quickly helps protect your rights.
Final Thoughts: Know The Worth of Your Case
Car accident injuries can have a devastating impact – physically, emotionally, and financially. Don’t settle for less than you deserve.
With the right legal team on your side, you can pursue the maximum compensation allowed under California law and start rebuilding your life.
Hurt in a Car Accident in the San Francisco Bay Area?
The Hassell Law Group has recovered multi-million-dollar settlements for injured clients across San Francisco, Oakland, San Jose, and the entire Bay Area. Let us fight for you. Contact us today for a free consultation.
Free consultation. No fees unless we recover compensation for you.
We offer California Car Accident Victims a Free Consultation, and There Are No Attorney’s Fees Unless We Recover Money for You
At The Hassell Law Group, our legal team are experts in car accidents and personal injury law with over 100 years of combined legal experience. Our legal team stands up to stubborn insurance companies and we have a record of obtaining award-winning results for our clients. We fight every step of the way to achieve the best possible outcome for our car accident clients. We work on a contingency fee basis, which means you pay nothing unless we recover. There is thus no risk in hiring our law firm.
Contact us today to schedule a free consultation and case evaluation. We welcome your questions, and our legal team looks forward to helping you obtain just and proper compensation for your personal injury claim.
Read next: How long after a car accident can you claim injury?
The general information provided on this website should not be considered legal advice and does not constitute legal advice. For legal advice, you should consult directly with an attorney. If you contact us by telephone, email, letter, or by contact form submission through this website, please note that such communication does not create or constitute an attorney-client relationship. We cannot act as your attorney until we are hired as your attorney by a formal written agreement.
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