When the At-Fault Driver's Insurance Won't Cover Your Repairs

Attorney Answer

The other driver's insurer pays only up to the property-damage limit on that driver's policy. The rest of your repair bill does not disappear: the at-fault driver still owes it personally, and your own collision coverage, if you carry it, can pay it now and pursue the driver later.

Start with what the limit means. Every California driver must carry liability insurance, and Cal. Veh. Code § 16056(a) sets the minimum amounts. The minimum depends on when the accident happened. For accidents before January 1, 2025, the required floor was $15,000 per person and $30,000 per accident for injuries, and $5,000 for property damage. For accidents on or after January 1, 2025, the floor rose to $30,000, $60,000 and $15,000. A driver who carried only the minimum on a 2023 crash had $5,000 of coverage for damage to your car, which is less than many single repairs. Once the insurer pays that limit, its obligation under the policy is exhausted.

The driver's obligation is not. Cal. Civ. Code § 1714(a) makes everyone responsible for an injury occasioned to another by their want of ordinary care, reduced only so far as the injured person's own lack of care contributed. A policy limit caps what the insurer pays, not what the person who caused the damage owes. The balance is a debt the driver owes you. Whether that debt is worth pursuing depends on whether the driver has anything to collect from, and that is the honest problem in most underinsured cases.

There is a faster route if you carry collision coverage on your own policy. Your insurer pays the repair under your policy, less your deductible, and then seeks reimbursement from the at-fault driver or that driver's insurer. California's Fair Claims Settlement Practices regulations govern how that works. Under Cal. Code Regs. tit. 10, § 2695.7(p), your insurer must tell you in writing whether it intends to pursue subrogation, and if it declines, that any recovery is now yours to pursue. Under § 2695.7(q), any subrogation demand it makes must include your deductible, and it must share what it recovers with you on a proportionate basis.

Two further rules protect you while the claim is open. Under Cal. Code Regs. tit. 10, § 2695.7(b), an insurer must accept or deny a claim, in whole or in part, within 40 calendar days after receiving proof of claim, and under § 2695.7(g) it may not attempt to settle by making an offer that is unreasonably low. If the repair cost approaches what the car is worth, the total-loss standards in § 2695.8(b) apply: the settlement must be based on the actual cost of a comparable automobile, including applicable taxes and transfer fees, and the regulation states that "this procedure shall apply whether or not a replacement automobile is purchased." Under § 2695.8(b)(6), those valuation standards apply to third-party total-loss claims as well.

What you can do

1. Ask the other driver's adjuster, in writing, to confirm the property-damage limit on the policy and to state in writing whether the claim is accepted and for how much.

2. Get your own itemized repair estimate from a shop you choose. Under Cal. Code Regs. tit. 10, § 2695.8(e)(1), an insurer cannot require that your car be repaired at a specific shop.

3. If you carry collision coverage, open a claim with your own insurer for the shortfall and ask in writing whether it will pursue subrogation for your deductible.

4. Keep every estimate, photograph, rental receipt and letter. If the car is declared a total loss, ask for the written, itemized comparable-vehicle valuation the regulation requires.

5. Ask a local attorney about recovering the unpaid balance from the driver personally, and whether the amount fits small claims court. Most lawyers offer a brief initial call at no cost, and a few minutes on your specific numbers, and on whether the driver is collectible, is worth more than any general guidance, including this page.

⏱ Time limits apply. A claim for damage to your vehicle is governed by Cal. Code Civ. Proc. § 338(c)(1), which allows three years, and any injury claim by Cal. Code Civ. Proc. § 335.1, which allows two years. Both run from the accident, and whether either has already run depends on your dates. If the accident was some time ago, have a local attorney check the deadline now rather than after the insurer finishes.