Insurance
The coverage that actually pays
California’s minimum liability limits are low, and most serious cases exceed them. Where they do, the question becomes what other coverage exists: the at-fault driver’s umbrella policy, an employer’s commercial policy, and above all the injured person’s own uninsured and underinsured motorist coverage, which is the most overlooked source of recovery in this practice. A UM or UIM claim is made against your own insurer, does not depend on the other driver having anything, and usually has its own contractual deadlines that are shorter than the statute of limitations.
Medical payments coverage under your own policy pays treatment regardless of fault. Health insurance, Medi-Cal, and Medicare will generally assert liens against any recovery, and resolving those liens is a substantial part of what an injured person actually receives.
Proposition 213 is the trap worth knowing. Under Civil Code 3333.4, an owner who was driving their own uninsured vehicle, or a driver convicted of DUI in the incident, cannot recover non-economic damages at all, however badly hurt and however clearly the other driver was at fault. Economic losses remain recoverable. This single rule changes the value of a case more than almost anything else.
Sources: Vehicle Code 16056 — California’s minimum liability limits; Civil Code 3333.4 — Proposition 213 bars non-economic damages for uninsured drivers.