Car accidents can result in serious injuries and significant financial burdens. Our team at Gallo Law has extensive experience handling all types of auto accident cases, from fender-benders to multi-vehicle collisions. We work diligently to secure fair compensation for medical expenses, lost wages, and pain and suffering.
Auto accidents often involve intricate legal issues such as determining liability, dealing with insurance companies, and navigating state traffic laws. Our attorneys thoroughly investigate each case, collecting evidence such as police reports, eyewitness statements, and medical records to build a strong claim. We understand that auto accident victims may suffer from long-term medical conditions, lost income, and emotional distress. Our goal is to ensure our clients receive full and fair compensation for both immediate and future damages. Whether through negotiation or litigation, we aggressively advocate for our clients’ rights and best interests.
Types of Car Accidents:
Car accidents come in many forms, and understanding these types can help in determining liability and pursuing appropriate compensation. Some of the most common types include:
- Rear-End Collisions: These are among the most frequent accidents, typically caused by tailgating or distracted driving.
- T-Bone Accidents: Also known as side-impact collisions, these occur when one vehicle strikes the side of another, often at intersections.
- Head-On Collisions: These are among the most severe, as two vehicles traveling in opposite directions collide.
- Rollover Accidents: Often involving SUVs or trucks, rollovers can be caused by sharp turns, high speeds, or vehicle instability.
- Hit-and-Run Accidents: When a driver flees the scene, victims may struggle to obtain compensation.
- Multi-Vehicle Pileups: Accidents involving multiple vehicles create complex liability issues and can lead to severe injuries.
Determining Fault: Who Can Be Liable in a Car Accident?
Car accidents can be caused by various parties, and determining liability is crucial to pursuing compensation. Depending on the circumstances, one or more of the following entities may be held responsible:
- Private Individuals: Most car accidents involve a private driver who may have acted negligently by speeding, driving distracted, or violating traffic laws.
- Employers: If a driver was operating a company vehicle or performing work duties at the time of the accident, the employer may be held liable under the legal doctrine of respondeat superior, which holds employers responsible for the actions of their employees when performed within the scope of their employment.
- Rideshare Companies: In accidents involving Uber, Lyft, or similar services, liability may be complex. Rideshare companies have specific insurance policies that cover accidents depending on whether the driver was actively transporting a passenger, waiting for a ride request, or off-duty.
- Trucking Companies: When a commercial truck is involved in an accident, the trucking company may be liable for factors such as poor maintenance, improper hiring practices, or pushing drivers beyond legal limits for work hours.
- Government Entities: If an accident is caused by poor road conditions, inadequate signage, malfunctioning traffic lights, or a government-owned vehicle, a city, county, or state agency may be liable. Claims against the government have special filing requirements and shorter deadlines under California Government Code § 911.2.
- Vehicle Manufacturers: If a defective car part or system failure contributed to the accident, the vehicle manufacturer or parts supplier may be responsible under product liability laws.
- Mechanics and Maintenance Companies: Improper vehicle repairs or negligent maintenance can lead to mechanical failures that cause accidents, making the mechanic or service provider liable.
- Bars and Restaurants (Dram Shop Laws): In rare cases, businesses that serve alcohol to an intoxicated driver who later causes an accident may face legal responsibility under California Business & Professions Code § 25602, though liability in California is generally limited.
Identifying the responsible party or parties is crucial in building a strong case. Our firm investigates every aspect of an accident to ensure that all liable entities are held accountable and that our clients receive full compensation.
Car Accident Statistics:
Understanding car accident statistics highlights the risks faced by drivers:
- The National Highway Traffic Safety Administration (NHTSA) reports that over 38,000 people die in car crashes each year in the U.S.
- California consistently ranks among the states with the highest number of traffic accidents.
- Distracted driving, speeding, and impaired driving are leading causes of accidents.
Common Car Accident Injuries:
Car accidents can cause a range of injuries, including:
- Whiplash and Neck Injuries
- Traumatic Brain Injuries (TBI)
- Spinal Cord Damage
- Broken Bones and Fractures
- Soft Tissue Injuries
- Internal Organ Damage
- Psychological Trauma and PTSD
Preserving Evidence After a Car Accident:
Building a strong case depends on proper evidence collection. Key steps include:
- Taking photographs of the accident scene, vehicle damage, and injuries.
- Collecting witness statements and contact information.
- Obtaining police reports.
- Seeking immediate medical attention and keeping all records.
- Checking for nearby traffic or surveillance cameras.
Vehicle Type and Severity of Accidents:
The type of vehicle involved can influence the severity of an accident:
- Compact Cars: More susceptible to damage in crashes with larger vehicles.
- SUVs and Trucks: Higher likelihood of causing rollovers and greater damage to smaller vehicles.
- Motorcycles: Riders are more exposed, leading to severe injuries even in minor accidents.
Impact of Traffic Law Violations:
Violations such as speeding, running red lights, and DUI can significantly impact liability and legal claims. In California, violating traffic laws can be used as evidence of negligence in a personal injury claim.
Relevant California Laws:
- California Vehicle Code §21700: Requires drivers to stop at intersections and yield the right-of-way.
- California Vehicle Code §22331: Prohibits texting while driving.
- California Vehicle Code §22813: Governs reckless driving laws.
California’s Liability Laws:
California follows a comparative negligence system under California Civil Code Section 1714, meaning a plaintiff’s compensation may be reduced based on their percentage of fault. For example, if a victim is found 20% at fault, their compensation will be reduced by 20%.
Multi-Vehicle Accidents and Claims:
When multiple vehicles are involved, determining fault becomes complex. Liability may be shared among several parties, requiring detailed accident reconstruction and expert testimony.
Event Data Recorders (EDRs):
Many modern vehicles are equipped with EDRs, which store crucial data about speed, braking, and other factors leading up to an accident. This data can serve as key evidence in proving liability.
Types of Car Insurance Coverage
Auto insurance policies consist of various coverages, each serving a distinct purpose. Understanding these coverages is essential to ensuring adequate protection in the event of an accident.
1. Third-Party Liability Coverage
Definition: Liability coverage protects the insured from financial responsibility when they are at fault in an accident. It pays for injuries and damages sustained by other parties. This coverage does NOT pay for the insured’s own injuries or vehicle damage.
Components:
- Bodily Injury Liability (BIL): Pays for medical expenses, lost wages, and pain and suffering of the other driver or pedestrian. For example, Marissa causes an accident against Paul. Paul is injured. Paul will make a claim against Marissa’s insurance policy for medical expenses, lost wages, and pain and suffering. Can Paul make a claim solely for pain and suffering? Yes. This usually happens with brain injuries and broken bones. With broken bones, many times there isn’t high medical expenses because there isn’t much a doctor can do. You can’t really surgically repair a broken rib. It’s extremely painful and there isn’t much medical treatment for it. Without medical treatment for the broken rib, there isn’t much medical expenses. Sometimes it’s best to leave out the medical expenses because they are so low that it doesn’t help increase the value of the claim but it does create more work for the insurance company to evaluate the claim.
- Property Damage Liability (PDL): Covers repairs or replacement costs for third-party property, including vehicles, car seats, fences, or buildings damaged in an accident. Since Marissa caused the accident against Paul, Paul will make a property damage claim against Marissa’s insurance policy. What if Paul’s damage to his vehicle is larger than Marissa’s property damage coverage? Paul can sue Marissa for the rest.
Example Scenario: Michael is driving to work when he runs a red light and crashes into another vehicle. The driver of the other vehicle, Sarah, sustains injuries that result in $40,000 in medical expenses. Michael’s liability insurance covers up to $30,000 per person. Because Sarah’s damages exceed Michael’s coverage limits, she may sue him for the remaining $10,000.
2. Collision Coverage
Definition: Covers damage to the policyholder’s own vehicle in a collision, regardless of fault.
Process:
- The policyholder files a claim.
- An adjuster inspects the damage.
- The insurance company reimburses repair costs minus the deductible.
Example Scenario: Linda is involved in a single-vehicle accident after skidding on ice. Her car suffers $8,000 in damage. Since she has a $1,000 deductible on her collision coverage, her insurer pays $7,000. The same would be true if Linda was at fault for the accident.
3. Comprehensive Coverage
Definition: Pays for vehicle damage caused by non-collision events, such as theft, fire, vandalism, or natural disasters.
Example Scenario: David parks his car in a shopping mall parking lot. Overnight, a hailstorm causes $3,500 in damage. Since he has comprehensive coverage with a $500 deductible, the insurance company pays $3,000.
4. Uninsured/Underinsured Motorist (UM/UIM) Coverage
Definition: Protects you for accidents involving drivers with no insurance or insufficient insurance to cover damages. Uninsured coverage is when the other driver has zero insurance. Underinsured coverage applies when the other driver has a smaller policy limit than your own underinsured policy limit.
Uninsured Example Scenario: Emily is struck by a hit-and-run driver. Her medical bills amount to $20,000. Since the at-fault driver cannot be identified, her uninsured motorist coverage compensates her for medical costs.
Underinsured Example Scenario: The driver who crashed into Emily has a $30,000 policy. Emily has a $100,000 underinsured policy. In California, Emily can recover the $30,000 and then she can seek to recover the rest of the $100,000 from her own insurance company. California does not allow stacking. So, Emily can only recover $70,000 from her own insurance company. In order to recover from her own underinsured policy, Emily has to obtain all of the insurance available first. So, if Emily settles with the other driver’s insurance company for $25,000 when the policy is $30,000, Emily will not be able to recover from her own insurance company. She must “exhaust” all other available insurance before recovering from her own.
If the accident occurred out of California, for example, in Arizona, “stacking insurance policies” is permitted. So, Emily would be able to recover the $30,000 and also recover $100,000 from her own insurance company.
It is extremely important to move fast with uninsured and underinsured claims. You must report the accident to your insurance company right away to avoid a denial of the claim. Insurance companies are suspicious of uninsured claims involving hit and run accidents because there are a lot of fraudulent claims of these types. People will set up an accident with a friend or relative in order to recover money from their own insurance company. Why would they do this through a hit and run? First, the other driver’s insurance will not increase because they were not found because they got away. Second, the person who makes the uninsured claim can recover a lot of money by faking injuries. Third, the insurance of the person who makes the uninsured claim will not increase. Insurance companies are prohibited by law from increasing rates as a result of their insured filing an uninsured claim.
It’s extremely important to contact and hire a car accident attorney right away so they can help you with filing the claim right away. Otherwise, if you contact your insurance company before hiring a car accident lawyer, you might say things that hurt your ability to recover money. Most people don’t have a full understanding of car accidents, liability, insurance, etc., so they will make mistakes on the phone and the calls are recorded. Once you make that mistake, it can’t be undone. It’s kind of like “Everything you say can and will be used against you.” Insurance companies are in the business of … insurance. They are experts. The business of insurance is collect monthly payments and find a way to not pay when someone makes a claim. Insurance companies are structured to deny and minimize payouts. They train their employees for weeks every time they’re hired to avoid paying claims or pay out as little as possible. They are trained to trick you. They are train to record it. They are trained to use it against you. State Farm Insurance, Progressive Insurance, Mercury Insurance, AAA Insurance, GEICO Insurance, Farmer’s Insurance, USAA Insurance, are billion dollar companies for a reason. They know how to deny and minimize claims.
5. Medical Expense Payments (MedPay)
Definition: Covers medical expenses for the policyholder and passengers, regardless of fault.
Example Scenario: John and his wife are injured in a rear-end accident. Their combined medical bills total $15,000. Since they have $10,000 in MedPay coverage, their insurer covers the first $10,000, and they pay the remaining $5,000 out-of-pocket or through another party’s insurance.
Many Medpay provisions reserve a right for the insurance company to be reimbursed for the amount they paid out. So, if the insurance company pays the $10,000 and there is a provision in the insurance policy that provides for them to seek reimbursement, they will seek reimbursement once the case settles. It’s important to hire a car accident attorney with experience. Many times, insurance companies will actually waive the reimbursement of the amount they paid out, or you can negotiate it. So if the insurance company pays out $10,000 in Medpay, they will sometimes ask for it back but sometimes they waive it and will not seek reimbursement.
6. Rental Car Coverage
Definition: Pays for rental costs when a policyholder’s car is being repaired after a covered accident.
Example Scenario: Sarah’s car is in the shop for 10 days after an accident. Her rental reimbursement policy covers $40 per day, ensuring she has a temporary vehicle.
Many insurance companies will pay for your rental if their driver is at fault. Some even do this as a company policy even if their driver doesn’t have rental coverage. Sometimes the rental coverage is limited by time and amount. For example, the rental coverage may last for two weeks and cover up to $30 per day. In that case, you may have to pay out of pocket for the rest.
7. Excluded Drivers
Definition: A policyholder may exclude specific individuals from coverage due to high-risk factors.
Example Scenario: Mark’s teenage son has multiple speeding tickets. To keep his premium low, Mark excludes his son from his policy. If his son drives Mark’s car and causes an accident, the insurance company denies coverage.
8. Permissive Drivers (Users)
Definition: Someone who is permitted by the owner of the vehicle to drive the vehicle.
Example Scenario: Joe owns a car and allows his friend John to drive it. Joe’s insurance will cover John up to the same amount that Joe is covered for.
9. Negligent Entrustment
Definition: When the owner of a vehicle permits someone to use the vehicle when they shouldn’t be driving.
Example Scenario: Mark’s teenage son has multiple speeding tickets and 2 DUIs. If Mark lets his son borrow his car and his son causes an accident, Mark is responsible for it. What if Mark only has $30,000 in bodily injury coverage and the person injured has a claim for more than the $30,000? Even though Mark wasn’t driving the vehicle, Mark is still responsible for the entirety of the claim! So, if Mark’s son causes the other driver to die, Mark is responsible. Wrongful death claims are tragic, and many times settle or go to jury verdict for tens of millions of dollars. Mark will be responsible for it.
10. Low Insurance, Large Dollar Claims
What happens if the injuries are significant, but the insurance is small, such as a $30,000 policy? The insurance company will usually try to settle right away and will only do so after obtaining a full release. This means that if you sign the release, you are agreeing to receive $30,000 and you will not seek more from the person or insurance company. But what if the person with the $30,000 has an expensive house, assets, money, cryptocurrency, etc.? You don’t have to accept the $30,000 and move on; you can demand a personal contribution from the other driver. In that scenario, the insurance company will pay $30,000 because that’s all they’re required to pay and the other driver will pay out of their own pocket.
11. What happens if the insurance company refuses to pay?
It depends. This area of law is called “Bad Faith”, and it’s really complicated. To simplify, if you 1) make a demand to the insurance company to pay the policy, 2) the value of your claim is worth more than the policy, and 3) the insurance company refuses to pay or offers something less than the full policy limits, you may have “opened” the lid on the policy. That means you can actually recover more than the policy limits. This is why it’s important to talk to an Orange County Lawyer, Los Angeles Lawyer, Riverside Lawyer, or San Diego Lawyer if you have a car accident. The value of cases is partly dependent on where it occurred. By hiring an Orange County Car Accident Lawyer, Los Angeles Car Accident Lawyer, Riverside Car Accident Lawyer, or San Diego Car Accident Lawyer if you have a car accident, you may be able to open the insurance policy of the other driver and recover more than their insurance policy.
You can also “open” the policy of your own. It’s a different process going against your own insurance company than opening the policy of the other driver. When you open the insurance policy of the other driver, it’s a bad faith action between the other driver and his/her/it’s insurance company. Essentially, the insurance company failed to pay the policy of the other driver when they should have, and now the other driver is on the hook personally. So, the driver sues their own insurance company for not making payment when the insurance company should’ve settled the case.
When you make a demand against your own insurance company, it involves your own insurance breaching the contract that you have with them. They owe you a duty of good faith, and you have a contract with them. When they don’t pay, or they delay paying, they are breaching the contract. The damages are determined by how much you’ve been harmed by them not paying or failing to pay. For example, let’s say you’re injured, concussion, neck injury requiring a fusion surgery, and a broken arm. You receive a settlement of $30,000 from the other driver because that’s their policy limit. Now, you want to recover from your $100,000 underinsured policy. You make a demand for the $70,000 difference ($100,000 minus $30,000), but your insurance company doesn’t pay. They request the actual MRI films. So, you provide them. Your insurance still doesn’t pay. They say that they think you have prior injuries that may be responsible for the surgery. So, you provide them with 3 years of prior medical records. Again, they don’t pay. They say that you shouldn’t have paid for the medical care on a private lien, you should’ve used your health insurance. They are simply delaying and finding any little excuse not to pay. And the whole time this has been going on, you haven’t been working. So, you missed payments on your credit cards and house. You lost your house to foreclosure. If your insurance company would’ve paid you from the start, then you could’ve saved your house. Your credit score went down because you defaulted on your credit cards. Your claim against your insurance company will also cover the foreclosed house and damage to your credit score.
This is why it’s important to call an Orange County Car Accident Lawyer, Los Angeles Car Accident Lawyer, Riverside Car Accident Lawyer, or San Diego Car Accident Lawyer if you have a car accident. Your insurance company knows that you may make a claim against them for your uninsured or underinsured coverage after recovering from the other driver. They are not trying to take care of you. They are setting up your claim from the beginning to harm you and protect their interests even though they make it seem like they are on your side. But in the end, you may end up fighting with them more than the other driver’s insurance company. Hire an Orange County Car Accident Lawyer, Los Angeles Car Accident Lawyer, Riverside Car Accident Lawyer, or San Diego Car Accident Lawyer right away if you have a car accident so you can do it right from the start. At Gallo Law, we like insurance companies, they pay our clients; however, we don’t trust them. Even though they are people just like you and me, they are hired to do a job: make the insurance company more money. And for insurance companies, that means finding ways to not pay you money or minimize the amount they pay.
The Insurance Claims Process
Filing a claim involves multiple steps, from gathering evidence to negotiating settlements.
Steps:
- Report the accident to the insurance company. This can be done on the app.
- Submit evidence, including photos and police reports.
- Work with an adjuster to assess damages.
- Send a demand for compensation.
- Receive a settlement offer.
Example Scenario: Laura is rear-ended in traffic. She submits an insurance claim, and the adjuster estimates $5,000 in repairs. The insurance company pays for the repairs after she pays her $500 deductible.
Handling Property Damage Claims
Option 1: Filing Through the At-Fault Driver’s Insurance
- Pros: No deductible required.
- Cons: Can be delayed if liability is disputed.
Option 2: Filing Through Your Own Insurance (Collision Coverage)
- Pros: Faster processing.
- Cons: Deductible required.
Insurance Disputes and Arbitration
When liability is disputed, insurance companies may negotiate or seek arbitration.
Example Scenario: Jake and Tom are involved in an intersection accident. Each driver blames the other. Their insurers disagree on liability, leading to arbitration, where an independent arbitrator determines fault.
Common Policy Exclusions
- Intentional damage
- Racing incidents
- Using personal vehicles for business without proper coverage
Example Scenario: Lisa lends her car to a friend, who gets into an accident while delivering food for a rideshare company. The insurance company denies the claim due to business use exclusion.
Proposition 213 and Uninsured Drivers
California’s Proposition 213 prevents uninsured drivers from recovering non-economic damages (pain and suffering).
Example Scenario: Johnny, an uninsured driver, is rear-ended by a negligent driver. He incurs $50,000 in medical bills and $30,000 in pain and suffering damages. Because of Prop 213, he can only recover economic damages ($50,000) but not pain and suffering.
Exceptions:
If the at-fault driver was drunk, Prop 213 does not apply.
Insurance Coverage for Married Couples
Spouses living together should be explicitly listed on the policy. Failure to do so may result in denied claims.
Example Scenario: Emma and her husband share a car. She is not listed on the policy and gets into an accident. The insurer denies coverage.
Accidents While on the Job
If an employee is driving for work, their employer’s insurance typically applies.
Example Scenario: Ben is making deliveries when he rear-ends another vehicle. His employer’s commercial policy covers the damages.
Conclusion
Understanding auto insurance ensures financial protection and compliance with the law. It’s important to call an Orange County Car Accident Lawyer, Los Angeles Car Accident Lawyer, Riverside Car Accident Lawyer, or San Diego Car Accident Lawyer right away if you have a car accident. The sooner we can get started, the better.