Wilshire Legal®

Insurance generally pays a claim only up to the dollar limits written into your policy, and any judgment beyond those limits can become your personal responsibility. In California, drivers must carry at least $15,000 for injury or death to one person, $30,000 for injury or death to more than one person, and $5,000 for property damage. Those minimums are often far lower than the true cost of a serious crash, which is how a plaintiff can end up seeking more than your coverage provides. Understanding your declarations page early generally helps you plan. If you are unsure what your policy actually covers, a free case review can help you read it.

California uses a fault-based system, meaning the person responsible for an accident is generally liable for the resulting damages. The state also follows pure comparative negligence, so if you are found partly at fault, your share of the damages is reduced by the other party’s percentage of fault, and vice versa. This matters because a strong liability defense can lower the amount a plaintiff recovers, and in some cases keep an award within your policy limits. Because fault is often disputed, the facts and evidence you gather early can carry real weight. A legal professional can review how comparative fault may apply to your case.

Uninsured and underinsured motorist (UM/UIM) coverage on your own policy can help when the at-fault driver’s insurance is missing or too small to cover your losses. This optional coverage generally steps in to pay medical bills and other damages up to your UM/UIM limits after the other driver’s policy is exhausted. It is a common gap that surprises people after a serious collision, especially given California’s low mandatory minimums. Reviewing whether you carry this coverage is generally worth doing before you ever need it. If you were hit by an underinsured driver, our team can help you explore what your own policy may provide.

If a judgment exceeds your insurance limits, the plaintiff may generally pursue your personal assets to collect the difference, known as an excess judgment. That can potentially reach non-exempt savings, investments, or a portion of wages, though California law shields several categories. Homestead exemptions generally protect a range of home equity, many retirement accounts are typically protected, and Social Security benefits are usually shielded from collection. Negotiation, structured settlements, and a careful liability defense can all reduce this exposure in many cases. Because the stakes are personal, this is a moment to talk with a legal professional rather than guess.

A lawyer generally works to keep an excess judgment from ever landing on your personal assets by challenging fault, disputing damages, and negotiating with insurers. That can include pressing your insurer to defend and settle in good faith within limits, arguing comparative negligence to reduce the award, and identifying additional coverage such as an umbrella policy that may apply. In some cases, exploring settlement structures protects more of what you own than a courtroom loss would. No approach can ensure a certain result, but experienced advocacy often changes the range of outcomes. Wilshire Law Firm can review your exposure and explain your options in a free case review.

Commercial vehicles and higher-value defendants generally face larger coverage requirements and larger targets, which changes the analysis. Federal rules through the FMCSA require many commercial trucks to carry at least $750,000 in liability coverage, and interstate carriers must meet strict regulatory and compliance standards. Businesses and high-net-worth individuals often carry higher limits precisely because they have more to protect, and umbrella policies commonly add a layer above auto or homeowner coverage. More assets can mean more exposure if coverage falls short. If a commercial policy or a sizable personal estate is involved, a legal professional can help you map the risks.

In California, a personal injury lawsuit generally must be filed within two years of the accident under Code of Civil Procedure §335.1. Missing that deadline can bar a claim entirely, which affects both people bringing suit and those defending one, and shorter deadlines can apply when a government entity is involved. Related coverage disputes and collection efforts follow their own timelines as well. Because these dates are firm and fact-specific, acting early generally preserves the most options. If you are unsure how the statute of limitations applies to you, our team can help you sort it out at no cost.